Nam Phuong Company has been repeatedly subjected to administrative penalties but continues to owe insurance premiums totaling over 28 billion VND.
The Ho Chi Minh City Social Insurance (BHXH) agency has just forwarded all relevant documents to the city's police, requesting them to consider criminal prosecution against Nam Phuong Co., Ltd. in the Northwest Industrial Zone, Cu Chi District.
This move comes after industry inspectors determined that the garment company continued to owe over 28 billion VND in social insurance and health insurance contributions from September 2015 to November 2017. The company had previously been fined multiple times for similar offenses.
Specifically, in March 2016, the Cu Chi District People's Court ordered Nam Phuong Company to pay social insurance, health insurance, and late payment interest totaling nearly 13 billion VND, based on a lawsuit filed by the Cu Chi District Social Insurance Office. Nearly half a year later, the company was recommended by the Inspectorate of the Department of Labor, War Invalids and Social Affairs to be fined 150 million VND by the City People's Committee for late payment of over 4 billion VND in insurance contributions.
"To date, the company continues to owe social insurance funds with increasingly large amounts of violations, seriously affecting the rights of employees," the Social Insurance agency stated, adding that during the inspection period, the company had rectified more than 2,9 billion VND.
Earlier this year, the Ho Chi Minh City People's Committee requested the social insurance system to strengthen the dissemination of new regulations on penalties and criminal prosecution for acts of evading contributions, defaulting on payments, abusing, and profiting from social insurance and unemployment insurance funds.
The 2015 Penal Code added the crime of evading social insurance, health insurance, and unemployment insurance contributions for employees, aiming to curb the problem of outstanding debts and evasion of mandatory social insurance contributions for workers.
The law, effective from January 1st, stipulates that the most serious offenses are punishable by fines ranging from 500 million to one billion VND (1-3 billion VND for commercial legal entities); or imprisonment for 2-7 years in cases of: evading insurance contributions of one billion VND or more, evading insurance contributions for 200 or more people, or failing to pay insurance premiums collected or deducted from employees.
Handbook on Social Insurance Contribution Calculation Wages 2018
Circular 59_2015_TT-BLDTBXH, which details some provisions on compulsory social insurance, guides Decree 115_2015_ND-CP detailing some provisions on compulsory social insurance for the implementation of the 2014 Social Insurance Law. 58_2014_QH13 stipulates as follows:
The monthly salary used for calculating social insurance contributions for employees whose salaries are determined by the employer is regulated as follows:
1. From January 1, 2016 to December 31, 2017, the monthly salary for social insurance contributions is the salary and salary allowances as stipulated in Clause 1 and Point a, Clause 2, Article 4 of Circular No. 47/2015/TT-BLDTBXH dated November 16, 2015 of the Ministry of Labor, War Invalids and Social Affairs guiding the implementation of some provisions on labor contracts, labor discipline, and material responsibility of Decree No. 05/2015/ND-CP dated January 12, 2015 of the Government detailing and guiding the implementation of some contents of the Labor Code (hereinafter referred to as Circular No. 47/2015/TT-BLDTBXH)...
This handbook provides information on monthly wages subject to social insurance contributions, non-mandatory monthly wage contributions, management and inspection procedures by labor management agencies, wages, insurance, and solutions for compliance with social insurance laws from January 1, 2018.
