How will employees at bankrupt enterprises with social insurance debts be resolved?

Solve lump-sum social insurance allowance

To ensure employees’ benefits, according to VSS, for beneficiaries whose period of participation in social insurance, if including the arrears of social insurance premium payment, is still less than 20 years, the lump-sum social insurance benefits shall be settled according to the provisions of Point a, Clause 1, Article 60 of the 2014 Law on Social insurance.

For beneficiaries according to Resolution No. 93/2015/QH13 of the National Assembly, the settlement shall be the same as for the case in Point a of this Clause.

To ensure long-term social insurance benefits for employees, the lump-sum social insurance entitlement shall not be settled for cases of having time to participate in social insurance, if including the period of outstanding payment of social insurance contributions, which is a full 20 years or more (except for one of the following cases: going abroad to settle; suffering from one of the life-threatening diseases and other diseases as prescribed by the Ministry of Health).

When the period of participation in social insurance is fully paid, the social security agency shall record and reserve the entire period of payment of additional social insurance premiums.

In case the employee continues to wish to receive lump-sum social insurance benefits, the agency shall calculate the previously settled time with the additional payment period to re-determine the new benefit rate according to the 2014 Law on Social Insurance on salary adjustment at the time of settlement of adjustment and deduct the recalculated benefit corresponding to the calculated benefit period including the rounded time (if any) for additional payment to the employee.

An employee submitting a dossier to settle the regime at the social insurance agency. Photo: Hai Duong Social Insurance (Photo taken before the pandemic occurred in this province)

Maternity and survivorship regime

Regarding the maternity regime, in the case of childbirth, child adoption, the employee has paid social insurance premiums to the sickness and maternity fund (excluding the period of outstanding social insurance payment) for six months or more as prescribed, if the basis for determining that the employee has not yet enjoyed the benefits, the social security agency shall settle the maternity allowance according to regulations at the time of the employee's birth-giving or adoption. When the period of participation in social insurance is paid additionally and the benefit level is changed, the benefit level shall be adjusted according to the provisions of the policy to pay the additional payment.

Regarding the retirement regime, the social security agency shall settle pension enjoyment for employees who fully meet the age and period of payment of social insurance premiums (excluding the period of outstanding social insurance payment) according to the provisions of the policy at the time of pension enjoyment.

When the period of participation in social insurance is paid additionally, the time of payment of social insurance premiums shall be added to adjust the retirement regime according to the provisions of the policy at the time of pension enjoyment. Simultaneously, the amount of the difference arising under the provisions of the salary policy from time to time shall be determined to make additional payments to employees from the time of enjoyment.

Regarding the survivorship regime, the social security agency shall settle funeral allowance for relatives when employees have a full 12 months of payment of compulsory social insurance or more as prescribed in Article 66 of the 2014 Law on Social Insurance or have a total period of payment of compulsory and voluntary social insurance premiums for a full 60 months or more.

The social security agency shall settle monthly survivorship allowance for relatives when the employee has had 15 years of compulsory social insurance payment or more, whose relatives are eligible for monthly survivorship allowance but do not choose to receive a lump-sum survivorship allowance.

To ensure long-term social insurance benefits for employees, the social insurance agency clearly stated that the survivorship allowance shall not be settled for employees who have paid compulsory social insurance premiums for 15 years or more (including the time they owe social insurance contributions), have eligible individuals and apply for a monthly survivorship allowance.