Ho Chi Minh City

More companies evade social insurance payment

Deputy director of Ho Chi Minh City Social Security Nguyen Thi Thu yesterday said that the agency announced 495 enterprises purposely find ways to evade paying social insurance from six months to years.
 

Workers of Sae Hwa Vina Company in Cu Chi require managers to pay salary and insurance (Photo: SGGP)

Workers of Sae Hwa Vina Company in Cu Chi require managers to pay salary and insurance (Photo: SGGP)

Ms. Thu said that the amount of social insurance debt companies failed to pay currently fluctuated from VND300 million to VND35.5 billion ($1,562,648).
She added if companies avoid paying social insurance in three months up, they would be filed in court. In 2015, the agency filed some 1,800 cases in court.
However, since January 1, 2016, as per the law, the agency is not eligible for filing companies in court any more but it must transfer the task of suing to trade unions. From the time of transferring till now, no more business has been filed in court because legal inconsistency hinders social insurance debt lawsuit efforts.
As per the agency, Mai Linh Company in district 1 leads the black list with the debt of VND35.5 billion. Followed are Nam Phuong in Ho Chi Minh City’s Cu Chi District with the debt of VND26.6 billion; Sai Gon Telecommunication Company (SPT) in Binh Thanh District owing VND14 billion and Vietnam Petrol Transportation Company in District 3 owing VND13.2 billion.
Lately, the city’s labor union has won the case of social insurance debt in March, the first of its kind. Additionally, after five years of filing the case in court, Cu Chi labor union won the case over Sae Hwa Vina which had to pay the debt of nearly VND4 billion.

By DUONG LOAN – Translated by UYEN PHUONG

Other news