Headlines 07/09/2020 11:42 SA

Rates of penalty for common violations arising from compulsory social insurance, health and unemployment insurance

Thanh Lợi

Below is a summary of rates of penalty for common administrative violations arising from compulsory social insurance, health insurance and unemployment insurance activities:

No.

Acts and corresponding rates of penalty

Relief and mitigative measures

Violations against regulations regarding compulsory social insurance and unemployment insurance contributions

1

Fine ranging from VND 500 thousand to VND 01 million imposed upon any employee that connives with an employer not to participate in the compulsory social insurance and unemployment insurance plan; participates in breach of regulations on regulations on eligible participants or contribution rates.

 

2

Fine ranging from VND 500 thousand to VND 01 million imposed for one of the following acts:

- Annually, failing to publicly post up information on employees' payment of social insurance contributions provided by social insurance authorities under clause 7 of Article 23 in the Law on Social Insurance;

- Failing to meet regulatory procedures for attesting to payment of unemployment insurance contributions for employees so that they can succeed in claiming their unemployment insurance benefits in accordance with existing regulations;

- Failing to provide or insufficiently providing information on employees' payment of compulsory social insurance and unemployment insurance contributions upon the request of employees or trade unions.

 

 

3

Fine ranging from VND 05 million to VND 10 million imposed upon any employer that fails to provide accurate, complete, and timely information and documents related to compulsory social insurance and unemployment insurance contributions or benefits at the request of competent state agencies and social insurance authorities.

 

4

Fine imposed at the rate between 12% and under 15% of total compulsory social insurance and unemployment insurance contribution defined at the date of issuance of the administrative penalty notice, but not exceeding VND 75 million upon any employer committing one of the following acts:

- Defer payment of compulsory social insurance or unemployment insurance contributions;

- Making underpayment of social insurance and unemployment insurance contributions in breach of the prescribed contribution rate requirement not to the extent that they are accused of evasion of payment of insurance contributions;

- Making underpayment of social insurance and unemployment insurance contributions by reference to their total actual number of employees eligible for participation in compulsory social insurance and unemployment insurance plans not to the extent that they are accused of evasion of payment of insurance contributions.

 

- Compelling the payment of the accrued amount of compulsory social insurance or unemployment insurance contributions.

- Compelling the payment of the amount of interest on insurance contributions accrued due to late payment, non-payment or evasion of payment, which is twice greater than the average rate of return that the social insurance fund would have earned in the preceding year from investment thereof. If not doing so, at the request of competent persons, banks, other credit institutions or state treasuries can, at their own discretion, withdraw money from the violating employer’s collection accounts to pay such amount of interest at the highest demand deposit interest rate quoted by state-owned commercial banks at the time of imposition of penalty into banking accounts of social insurance authorities.     

 

5

Fine imposed at the rate between 18% and 20% of total sum of compulsory social insurance and unemployment insurance contributions calculated at the time of issuance of the administrative penalty notice, but not exceeding VND 75 million upon any employer failing to pay compulsory social insurance or unemployment insurance contributions for the benefit of all employees eligible for participation in the compulsory social insurance or unemployment insurance plan not to extent that they are liable to be prosecuted for criminal offences.

6

Fine between VND 50 million and VND 75 million imposed upon any employer accused of evasion of payment of compulsory social insurance and unemployment insurance contributions not to the extent of being liable to be prosecuted for criminal offences.

Violations against regulations on preparation of application documents for entitlement to compulsory social insurance and unemployment insurance benefits

7

The amount of monetary penalty ranging from VND 01 million to VND 02 million is imposed upon any employee for one of the following violations:

- Making untruthful declarations, or changing, erasing or falsifying information related to the entitlement to social insurance and unemployment insurance benefits not to the extent of being liable to criminal prosecution;

- Failing to notify the Employment Service Center as prescribed when any employee has been offered a job within 15 working days from the date of submission of application documents for unemployment insurance benefits;

- As beneficiaries of unemployment insurance benefits, failing to send required notifications to the Employment Service Center in one of the following cases: they have got a job; they are conscripted for military or public security service; they receive monthly retirement pensions; they are studying for a term of at least 12 months.

 

Compelling the refund of the received amounts of social insurance and/or unemployment insurance benefits to social security authorities.

8

Fine between VND 05 million and VND 10 million imposed upon any employer accused of faking and falsifying inclusions in social insurance or unemployment insurance documents for the purpose of profiteering of compulsory social insurance and unemployment insurance benefits not to the extent of being liable to be prosecuted for criminal offences for each faked or falsified package of application documentation for social insurance or unemployment insurance benefits.

Violations against other social insurance or unemployment insurance regulations

9

Fine ranging from VND 01 million to VND 02 million per each employee, but not exceeding VND 75 million for any employer’s failure to pay occupational accident or disease insurance coverage within 10 days of receipt thereof from social security authorities.

Compelling the full payment of occupational accident and disease insurance benefits to employees.

10

Fine imposed at the rate between 18% and 20% of total benefit sum of compulsory social insurance benefits that the employer already appropriates at the time of issuance of the administrative penalty notice, but not exceeding VND 75 million, upon that violating employer.

Compelling the repayment of the amount of compulsory social insurance benefits that they have appropriated from the affected employees, plus the amount of interest on such amount calculated at the highest demand deposit interest rate publicly quoted by state-owned commercial banks at the time of imposition of the fine.

11

Fine between VND 02 million and VND 04 million imposed upon any employer failing to inform the Employment Service Center at the place where their office is located of any change in labor at their company as provided by law.

 

12

Fine between VND 02 million to VND 04 million for violation per each employee, but not exceeding VND 75 million, imposed upon any employer committing one of the following acts:

- Failing to prepare and submit application for participation in compulsory social insurance and unemployment insurance plans for their employees within 30 days from the date of conclusion of labor or employment contracts or recruitment;

- Failing to prepare and submit application documents or written requests within the time limits prescribed in clause 2 of Article 102, clause 1 of Article 103, clause 1 of Article 110 and clause 2 of Article 112 in the Law on Social Insurance;

- Failing to recommend their employees falling into the situations prescribed in Article 47 in the Law on Occupational Safety and Hygiene and Article 55 in the Law on Social Insurance to take medical examinations for assessment of level of incapacity to work at the Medical Expertise Council;

- Failing to return social insurance books to their employees according to the provisions of clause 5 of Article 21 in the Law on Social Insurance.

- Compelling vocational education institutions to provide courses in which employees participating in unemployment insurance have enrolled with respect to their failure to prepare and submit application for participation in compulsory social insurance and unemployment insurance plans for their employees within 30 days from the date of conclusion of labor or employment contracts or recruitment.

- Compelling vocational education institutions to pay back illegal gains to the state budget with respect to their failure to prepare and submit application documents or written requests within the time limits prescribed in clause 2 of Article 102, clause 1 of Article 103, clause 1 of Article 110 and clause 2 of Article 112 in the Law on Social Insurance.

13

Fine ranging from VND 02 million to VND 04 million imposed on any vocational education institutions committing one of the following violations:

- Providing vocational training courses lasting for the period less than as registered by unemployment insurance-protected employees per each affected employee, but not exceeding VND 150 million; 

- Colluding with other related entities or persons to earn illegal gains from each vocational education support sum that an affected employee is granted not to the extent of being liable to criminal prosecution.   

 

 

14

Fine between VND 10 million and VND 20 million imposed on any employer receiving financial support to offset costs of vocational training, education or vocational skill improvement training courses, aimed at ensuring their employees are continuously fit for their work, but failing to adhere to training plans approved by competent authorities when performing such training activities.    

 

Violations against regulations regarding health insurance contributions

15

Penalty in the form of caution or fine ranging from VND 50 thousand to VND 100 thousand for failure to pay health insurance contributions by individuals responsible for participating in health insurance.

Compelling the payment of insurance contributions payable to the collection account of the health insurance fund.

16

Penalty in the form of caution or fine ranging from VND 300 thousand to VND 500 thousand for employer’s failure to pay health insurance contributions for all of their employees responsible for participating in health insurance.

- Compelling the reimbursement for health insurance-covered medical costs that health insurance participants have to pay by themselves (if any). In case of failure to do so, such reimbursement must be paid into the state budget;

- Compelling the payment of contributions payable and interest thereon or unpaid or deferred amounts into the collection account of the health insurance fund

 

17

Fine ranging from VND 500 thousand to VND 01 million for employer’s failure to pay health insurance contributions for all of their employees responsible for participating in health insurance.

18

Fine ranging from VND 300 thousand to VND 35 million for the underpayment of health insurance contributions

Compelling the payment of contributions payable and interest thereon or unpaid or deferred amounts into the collection account of the health insurance fund.

Violations against regulations regarding the use of health insurance cards for medical services

19

Fine for any act of erasure or modification of health insurance cards for use to receive medical services which is imposed at one of the following rates:

- From VND 500 thousand to VND 01 million for any violation that has not yet inflicted any loss on the health insurance fund;

- From VND 01 million to VND 02 million for any violation that has inflicted certain loss on the health insurance fund.

 

- Compelling the reimbursement for the amounts paid into the collection account of the health insurance fund in case of inflicting certain loss on the health insurance fund.

- Compelling health insurance cardholders to reimburse medical expenses that the health insurance fund already pays into the collection account of the health insurance fund in case of any loss inflicted on the health insurance fund.

 

20

Fine for any act of lending health insurance cards to other persons or using other person’s health insurance cards to receive medical services which is imposed at one of the following rates:

- From VND 500 thousand to VND 01 million for any violation that has not yet inflicted any loss on the health insurance fund;

- From VND 01 million to VND 02 million for any violation that has inflicted any loss on the health insurance fund.

 

Violations against regulations on listing outside persons as personnel of entities or organizations for participation in health insurance

21

Fines imposed upon entities or organizations listing persons unpermitted for participation in health insurance according to laws at one of the following rates:

- From VND 500 thousand to VND 01 million per each health insurance card if such violation has not yet inflicted any loss upon the health insurance fund;

- From VND 01 million to VND 02 million per each health insurance card if use of each unpermitted health insurance card has inflicted certain loss upon the health insurance fund.

 

- Compelling the reimbursement for the health insurance fund’s coverage for medical services in case of any loss inflicted on the health insurance fund.

 

- Petitioning competent regulatory authorities to withdraw or revoke health insurance cards in case of any loss inflicted on the health insurance fund.

 

22

Fines imposed upon individual participants in health insurance at entities or organizations in breach of laws at one of the following rates:

- From VND 500 thousand to VND 01 million per each participant if the participant has not yet used his/her health insurance card for medical services;

- From VND 01 million to VND 02 million per each cardholder if the cardholder has used his/her health insurance card for medical services.

 

Notes: Above are the rates of fines imposed upon individuals; if an organization commits the same violation, they must be fined twice more than the rate of penalty imposed on individuals.  Except No. 13 which is the rate of fine imposed on organizations.

In case of violations arising from compulsory social insurance, health insurance and unemployment insurance which lead to being liable for prosecution against criminal offences.

(1) If any person commits one of the following acts, appropriating VND 10 million or more of social insurance and unemployment insurance benefit or causing a loss of 20 million VND or more thereof despite not falling into the case specified in one of Articles 174, 353 and 355 in the 2015 Criminal Code, he/she will be liable to be prosecuted for the crime of cheating on social insurance and unemployment insurance in accordance with Article 214 of the 2015 Criminal Code.

- Making fake or falsified social insurance and unemployment insurance documentation with the aim of deceiving social insurance authorities;

- Using fake or falsified social insurance and unemployment insurance documentation with the aim of deceiving social insurance authorities to receive social insurance or unemployment insurance benefits.

(2) If any person who commits one of the following acts, appropriating VND 10 million or more of health insurance benefit or causing a loss of 20 million VND or more thereof despite not falling into the case specified in one of Articles 174, 353 and 355 in the 2015 Criminal Code, he/she will be liable to be prosecuted for criminal offence in accordance with Article 215 of the 2015 Criminal Code:

- Writing invented medical records or prescriptions, or prescribing drugs more than needed or listing out drugs, medical supplies, technical services, hospital bed or other expenses that patients do not actually use;

- Forging documents, health insurance cards or using health insurance cards issued by deception, fake, those that have been revoked, modified or under other person’s ownership to enjoy health insurance-covered medical services in contravention of regulations.

(3) If any person who is obliged to pay social insurance, health insurance and unemployment insurance contributions to their employees uses fraudulent acts or other tricks to fail to pay or not to fully pay such contributions according to the regulations for 06 months as prescribed hereunder has been subject to administrative penalties for these acts, but still committing violations, they will be prosecuted for criminal liability for the crime of evading the payment of social insurance, health insurance and unemployment insurance contributions for their employees according to the provisions of Article 216 of the 2015 Criminal Code:

- Evading the payment of insurance contributions worth at least VND 50,000,000;

- Evading the payment of insurance contributions for at least 10 persons.

- Failing to turn in sums collected or withheld from employees if these sums are worth at least 50,000,000 or are collected from at least 10 persons.

Legal bases:

- 2015 Criminal Code;

- Decree No. 28/2020/ND-CP dated March 1, 2020.

- Decree No. 176/2013/ND-CP dated November 14, 2013.

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