The draft revised law on social insurance broadens the number of attendees, prevents businesses from evading premium payment and heavily punishes violators, announced the Ministry of Labor, War Invalids and Social Affairs in Hanoi on August 5.
According to Ms. Tran Thi Thuy Nga, head of the Social Insurance Department, the draft law will repair shortcomings in the current one which was issued in 2006.
Objects attending the scheme will be broadened to increase the social insurance fund and bring more residents under the social insurance scheme.
Businesses will have to buy mandatory social insurance for workers with 1-3 month contracts. This regulation aims to prevent employers from evading the premium payment by signing labor contracts in only 1-3 months.
At present, only 10.9 million out of 17.5 million workers have had compulsory social insurance. according to Mr. Bui Sy Loi, deputy chairman of the National Assembly Committee for Social Issues.
Businesses owe VND12 trillion of social insurance premium.
The draft law entitles the Vietnam Social Insurance Agency to establish inspectorate over businesses’ social insurance payment and take legal proceedings against violators.
Trade union officials will have the rights to sue businesses for breaking relevant regulations.
Those evading social insurance payment will face criminal proceedings, Mr. Loi emphasized. Businesses might have to pay interest rate on premium debts. The interest rate will be double interbank rate.