More than 6,000 Nghe An enterprises have their pension and death benefit funds temporarily suspended due to the impact of Covid-19.

The implementation of this content aims to implement Directive No. 11/CT-TTg dated March 4, 2020 of the Prime Minister on urgent tasks and solutions to remove difficulties for production and business, ensuring social security in response to the Covid-19 epidemic.

Accordingly, Nghe An Social Insurance will allow businesses in the passenger transport, tourism, accommodation, restaurant and other special industries facing difficulties due to the Covid-19 pandemic, leading to the inability to arrange jobs for employees, to temporarily suspend contributions to the pension and death fund according to the provisions of Clause 1, Article 88 of the 2014 Law on Social Insurance and some related documents.

The transportation business is facing many difficulties during the Covid-19 pandemic. Photo: Duc Anh

To be temporarily suspended, the enterprise must meet one of two conditions: The enterprise cannot arrange jobs for employees, in which the number of employees participating in social insurance who must temporarily stop working accounts for 50% or more of the total number of employees present before the temporary suspension of production and business. Suffering damage of more than 50% of the total value of assets caused by the epidemic (excluding the value of assets being land).

According to regulations, the suspension of pension and death fund contributions will last until June 2020. In case the Covid-19 epidemic has not subsided after this period, if the enterprise has a request, promptly notify the provincial Social Insurance agency, the Insurance industry will coordinate with the Department of Labor - Invalids and Social Affairs, the Department of Finance to report to the Provincial People's Committee and send to Vietnam Social Insurance for consideration and settlement of temporary suspension of contributions until December 2020.

Due to the impact of the Covid-19 epidemic, a tourism business in Vinh city had to switch to online sales to ensure the rights of workers. Photo: MH

During the temporary suspension of pension and death benefit contributions, enterprises must still fully and promptly pay sickness, maternity, occupational accident and disease, health insurance and unemployment insurance funds to ensure the rights of employees.

After the period of temporary suspension of payment as prescribed, the employer and employee shall continue to pay social insurance and make a supplementary payment for the period of temporary suspension. The supplementary payment amount shall not be subject to late payment interest as prescribed in Clause 3, Article 122 of the Law on Social Insurance.

Regarding this content, Mr. Hoang Quang Phuc - Head of Collection Management Department (Nghe An Social Insurance) said: Through the survey, Nghe An currently has 6,198 enterprises affected by the Covid-19 epidemic with 138,585 employees working at the enterprises.

It is expected that the amount of money temporarily suspended from paying pension and death benefits for the entire province in 3 months will be more than 392 billion VND, 6 months will be more than 784 billion VND and 9 months will be more than 1,100 billion VND.

In addition, businesses that have not yet declared or are facing difficulties or problems can send an email to[email protected]for direct advice and guidance.