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7:52 PM, 25/08/2013

Fines for late payment of social insurance premiums

VGP – Employers who pay compulsory social insurance premiums or unemployment insurance premiums late shall be fined up to VND 75 million, according to the Government’s newly-issued Decree No. 95/2013/ND-CP.

Laborers who colluded with employers not to participate in compulsory social insurance or unemployment insurance shall also be sanctioned from VND 500,000- one million.

For the above committed-acts, offenders shall have to pay the amounts not yet paid or paid late.

The employers shall also have to pay interests on the amounts not yet paid or paid late at the interest rate of the investment from the social insurance funds in the year.

Salary payment

The Decree stipulates fines shall be imposed on employers who fail to pay salaries in accordance with Article 96 of the Labor Law, or pay the amounts of salaries lower than the regulated levels.

Specifically, a fine of between VND 5-10 million shall be given to employers if the number of affected laborers is from one to 10. The sanction will be increased up to VND 50 million if the number of laborers is 301 and above.

Employers who violate the above acts shall have to pay the amounts of salaries not yet paid as regulated and interests on such amounts at the rate of non-term deposits from the State Bank of Viet Nam at the time of announcement of salary payments.

According to the 2012 Labor Code (for reference):

Article 96. Principle of salary payment

The employee is paid directly, fully and in a timely manner.
In special case the salary may not be paid in a timely manner, it must not be later than 01 month and the employer must pay the employee an additional amount at least equal to the deposit interest rates by the State Bank of Vietnam announced at the time of payment.

Article 97. Overtime and working at night salary

1. The employee who works overtime is paid according to salary unit price or the salary by the job duties as follows:

a) On weekdays, at least 150%;

b) On weekly days-off, at least 200%;

c) On holidays and days-off with pay, at least 300% not including the salary of holiday and days-off for employee enjoying daily salary.

2. Employee working at night shall be additionally paid at least 30% of the salary calculated by the salary unit price or the work salary under a normal working day

3. The employee working overtime at night, in addition to the salary as prescribed in Clause 1 and Clause 2 of this Article, the employee shall also be paid an additional 20% of salary calculated by the salary unit price or the salary of work done in the day time

Article 98. Stop of working salary

In cases where the employee has to cease working, he shall be paid as follows:

1. If due to the fault of the employer, the employee shall be entitled to payment of the full salary;

2. If due to the fault of the employee, that employee shall not be entitled to salary payment; other employees in the same unit who have to cease work shall be paid the salary at the rate agreed on by the two parties provided that this salary rate is not less than the regional minimal salary rate as prescribed by the Government;

3. If there is a breakdown in electricity or water not due to the fault of the employer, or the employee or due to reasons of force majeure such as natural disasters, fire, dangerous epidemics, enemy-inflictes destruction, relocation of work place as required by the competent state agency or economic reasons, the salary for the working cease shall be agreed on by the two parties but shall not be less than the regional minimum wage as prescribed by the Government.

By Hai Minh

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