Employers repeatedly delaying buying mandated social insurance for their employees should face criminal rather than civil punishment, the deputy head of the Vietnam Social Insurance Agency has suggested.
Do Thi Xuan Phuong told Tien Phong newspaper that some companies also deliberately delay paying the insurance premium since the penal interest interest rate for this is 14.2, lower than bank lending rates.
Companies have yet to pay a total of VND8.7 trillion (US$418 million) for workers' health insurance and accident insurance, or 7 percent of the premiums collected in the first 11 months of the year.
The agency has urged the government to quickly send to the National Assembly an amendment to make failure to pay employees' insurance premiums a criminal offence and increases the interest rates on delayed premiums.
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