Interest rate for late payment of social insurance, health insurance, unemployment insurance

(Baonghean) - The provincial Social Insurance has just issued Official Letter No. 420/BHXH-QLT dated March 18, 2016 announcing the interest rate for late payment of Social Insurance (SI), Health Insurance (HI), and Unemployment Insurance (UI).

Accordingly, from January 1, 2016, the collection of late payment interest on social insurance, health insurance and unemployment insurance will be implemented according to the provisions of Clause 3, Article 6 of Decision No. 60/2015/QD-TTg dated November 27, 2015 of the Prime Minister. Specifically:

1.Penalties for cases where employers have not paid or are late in paying social insurance and unemployment insurance:

Pursuant to Point b, Clause 3, Article 6 of Decision No. 60/2015/QD-TTg dated November 27, 2015 of the Prime Minister, it is stipulated that "In case of evasion, late payment, or appropriation of social insurance and unemployment insurance contributions and benefits for 30 days or more, the amount of interest to be collected is equal to 02 times the average investment interest rate of the social insurance and unemployment insurance funds of the previous year".

- Investment interest rate in 2015 is 6.39%/year; equivalent to 0.5325%/month.

- The interest rate applied from January 1, 2016 is 1.065%/month.

District social insurance officers receive people and implement policies for people.

2.Penalty level for cases where employers have not paid or are late in paying health insurance:

Pursuant to Point a, Clause 3, Article 6 of Decision No. 60/2015/QD-TTg dated November 27, 2015 of the Prime Minister, it is stipulated that “In case of late payment of health insurance premiums for 30 days or more, the amount of interest to be collected shall be equal to 02 times the interbank market interest rate for a 9-month term announced by the State Bank of Vietnam on the Electronic Information Portal of the State Bank of Vietnam in the previous year, calculated on the amount and time of late payment. In case the interbank interest rate for the previous year does not have a 9-month term, the interest rate of the term immediately preceding the 9-month term shall apply”.

The 9-month interbank market interest rate as of December 31, 2015 announced by the State Bank of Vietnam on the State Bank of Vietnam's Electronic Information Portal is 6.5%/year; equivalent to 0.5416%/month.

However, up to now, Vietnam Social Security has not announced the interest rate for late payment of health insurance, therefore, Nghe An Social Security temporarily bases on the 9-month interbank market interest rate announced by the State Bank of Vietnam on the State Bank of Vietnam's Electronic Information Portal at the time of December 31, 2015 to calculate the amount of interest receivable for health insurance. Specifically: The interest rate applied from January 1, 2016 is temporarily calculated at 1.083%/month; when Vietnam Social Security announces a change in the interest rate, Nghe An Social Security will promptly notify the employer.

Nghe An Provincial Social Insurance respectfully requests Heads of units to pay attention and coordinate implementation.

Nghe An Provincial Social Insurance