Collecting late payment interest on social insurance and health insurance

The Prime Minister has just issued a Decision on the financial management mechanism for social insurance (SI), health insurance (HI), unemployment insurance (UI) and management costs of these three types of insurance.

Accordingly, the Social Insurance agency is assigned the task of collecting social insurance, health insurance, and unemployment insurance contributions from subjects and transferring them to Vietnam Social Insurance for management according to the guidance of Vietnam Social Insurance.

As for the health insurance premiums collected from subjects managed by the Ministry of National Defense and the Ministry of Public Security, these two units are responsible for managing and using them for medical examination and treatment for health insurance participants according to the provisions of law.

This regulation also clearly states that in cases of late payment of health insurance premiums of 30 days or more, the amount of interest to be collected is equal to twice the 9-month interbank market interest rate announced by the State Bank of Vietnam.

Upon receiving the employer's contributions, the Social Insurance agency directly manages the participants to collect the contributions to Social Insurance, Health Insurance, Unemployment Insurance, including late payment interest for employees eligible for Social Insurance or termination of labor contracts or employment contracts to promptly resolve the Social Insurance and Unemployment Insurance regime for employees according to the provisions of law (if any).

The remaining amount is recorded in the following order: Collect the full amount of health insurance premium and late health insurance interest (if any); collect the full amount of unemployment insurance premium and late unemployment insurance interest (if any); collect social insurance premium and late social insurance interest (if any).

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 2 times the average investment interest rate of the social insurance and unemployment insurance fund of the previous year, calculated on the amount and time of late payment.

To implement this regulation, within the first 15 days of January every year, Vietnam Social Security must have a written notice of the average monthly interest rate based on the average interest rate sent to the subordinate Social Security agencies, the Ministry of National Defense Social Security Social Security, and the Ministry of Public Security Social Security for unified implementation.

According to dantri.com.vn