LookAtVietnam – The municipal Social Insurance Agency is planning to take enterprises that have failed to pay social insurance for their employees to court in November.

Among them, 38 of the businesses owed large sums of money for their social insurance and would be sued, she said.

“Long-term debts in enterprises’ social insurance remains a problem for authorities, seriously effecting labourers’ rights and benefits,” she said. “Some enterprises have been in social insurance debt for as long as five years.”

State firms also guilty

According to Mai, quite a lot of State-owned firms with large numbers of labourers, especially in the fields of transport, mechanics and textiles and garments, were guilty of violations.

For example, the Joint Stock Bridge Company No 14 has owed VND11.7 billion ($650,000) in social insurance and the Joint Stock Bridge Company No 12, nearly VND10 billion ($550,000), and the May 1 Automobile Manufacturing Company has failed to pay social insurance of about VND6 billion ($330,000).

“Despite all of the agency’s strong measures to have enterprises clear their debts, many businesses have still obstinately ignored the claims,” she said.

Tran Thi Thuy Nga, head of the Social Insurance Department under the Ministry of Labour, Invalids and Social Affairs, said the current fines for the violations were not large enough to deter enterprises.

“Although the National Assembly Standing Committee last year added another VND10 million ($550), raising the fine to VND30 million ($1,650), it still seems too low, and the problem remains severe,” Nga said.

“Some enterprises would rather pay these low fines over their social insurance debts,” she added.

Nga said that fines that were based on the debts could be an effective solution to the matter.

“The agency will keep on examining enterprises to uncover violations and co-ordinate with inter-sectorial agencies to take enterprises seriously violating the Law on Social Insurance to court,” said Mai, from the Ha Noi Social Insurance Agency. “We will make every effort to ensure labourer’s benefits and rights.”

Cao Van Sang, director of the Social Insurance Agency in HCM City, where 69 enterprises have been sued for owing a total of VND40 billion ($2.2 million) in premiums for their employees since the beginning of the year, said that some articles in the Law on Social Insurance needed to be revised.

“In our city, 15 enterprises have already paid a total of VND6 billion ($330,000) in social insurance debts after being taken to court.”

Under the Law on Social Insurance, employees have the right to hold social insurance worth 23 per cent of their basic monthly salaries. Employers must pay 17 per cent and employees, 6 per cent. With this cover, employees can enjoy financial support when they are sick, and receive a pension.

VietNamNet/Viet Nam News