On March 17th, 2020, the Social Security Administration of Vietnam issued Official Letter No.860/BHXH-BT on temporary suspension of retirement and survivorship fund contribution for enterprises which are affected by Covid-19. Details are as follows:
- Suspension is applicable to enterprises in service of passenger transport, tourism, accommodation, restaurant and other special industries experiencing difficulties due to COVID-19, which fall under either of the following circumstances:
- Enterprises cannot provide work for employees, in which the number of employees who are subject to social insurance contribution but must temporarily suspend working is 50% or more of the total number of available employees before the business suspension;
- Enterprises suffer losses greater than 50% of the total value of assets due to COVID-19 (excluding land value).
Such enterprises are eligible to suspend the contribution until June 2020 without having to pay interest on late payments as prescribed by law.
- However, in case COVID-19 pandemic has not been alleviated by the end of June 2020, the enterprises can apply for consideration of continuously suspending the contribution until December 2020.
- After the suspension period, employers and employees still have to make supplementary payment for such period without having to pay interest on late payments.
