Công văn 3552/BHXH-TST

To: Ministry of Education and Training

Upon receiving the Official Dispatch No. 7770/VPCP-KGVX dated October 25, 2021 of the Government's Office on policies for supporting workers and businesses in the field of private preschool education, Official Dispatch No. 4935/BGDDT-GDMN dated October 27, 2021 of the Ministry of Education and Training on policies for supporting workers and businesses in the sector of private preschool education; the Vietnam Social Security gives certain opinions as follows:

1. Regarding policies for supporting workers and businesses facing financial hardship due to the Covid-19 pandemic

1.1. The Covid-19 pandemic has had a negative and profound impact on many aspects, especially in the fields of services, education and training,... , and has had major impact on business operation, and health, income and employment of workers. For timely support for businesses and workers facing financial hardship as a result of the Covid-19 pandemic, the Vietnam Social Insurance has actively coordinated with the Ministry of Labor, War Invalids and Social Affairs and related ministries and central authorities in developing and proposing competent authorities to issue policies to support businesses and workers, including:  Resolution No. 03/2021/UBTVQH15 dated September 24, 2021 of the National Assembly Standing Committee on promulgation of policies for supporting employees and employers affected by the Covid-19 pandemic from the unemployment insurance fund (UI); Resolution No. 68/NQ-CP dated July 1, 2021 of the Government on a number of policies to support employees and employers facing financial hardship due to the Covid-19 pandemic, Resolution No. 116/NQ- CP dated September 24, 2021 of the Government on policies to support employees and employers affected by the Covid-19 pandemic from unemployment insurance fund, Decision No. 23/2021/QD-TTg dated 07/02 7/2021 of the Prime Minister on implementation of a number of policies to support employees and employers facing financial hardship due to the Covid-19 pandemic, Decision No. 28/2021/QD-TTg dated October 1, 2021 of the Prime Minister o the implementation of policies to support employees and employers affected by the Covid-19 pandemic from the UI fund. In which, certain support policies related to the sector of social insurance include:

(i) Reduction in the rate of employer’s contribution to occupational accident or disease fund from 0.5 percent to 0 percent of the monthly wage fund as the basis for contributions to social insurance fund, with the initial expected support amount about VND 4,000 billion;

(ii) Temporary suspension of contributions to the retirement and survivorship fund and the estimated amount of temporary suspension for eligible businesses is about VND 8,000 billion;

(ii) Financial aid for workers from the surplus of UI fund, with an estimated amount of about VND 30,000 billion;

(iv) Reduction in the rate of employer’s contribution to UI fund from 1 percent to 0 percent of monthly wage fund as the basis for contributions to UI fund, with a support amount of about VND 8,000 billion.

(v) Training for employees to secure jobs from UI fund.

After the policies were promulgated, the Vietnam Social Insurance immediately roll them out with the principles as follows:  shorten the processing time, do not require additional procedures or documents, actively coordinate with the Department of Labor, Invalids and Society, relevant departments and authorities and enterprises; guide enterprises and employees to comply with regulations.

1.2. Pursuant to Point a, Clause 3, Section III of Resolution No. 105/NQ-CP dated September 9, 2021 of the Government on support for enterprises, cooperatives and business households amid the Covid-19 pandemic, Vietnam Social Security has worked on and proposed to waive fines for late payment of social insurance incurred in 2020 and 2021 and report to the Ministry of Labor, War Invalids and Social Affairs (Confidential).

1.3. For cases of employees whose employment contracts are suspended, taking unpaid leave, not being allowed to continue renewing the health insurance cards co-paid by the employee and the employer, the Vietnam Social Security has issued Official Dispatch No. 2288/CSYT dated July 30, 2021 requesting the Ministry of Health, at its own discretion or request competent authorities, to guide implementation of the health insurance policy for these employees.

2. Regarding the proposal of the business community operating in the sector of private preschool education:  “All costs of social insurance and health care are exempted, but employees may still enjoy benefits from the health insurance cards ( health insurance) during the period of shutdown and expansion for at least 12 months regarding social insurance and health insurance expenses from the time when normal operation resumes.”

According to the Law on Social Insurance 2014, Decree No. 146/2018/ND-CP dated October 17, 2018 of the Government on guidelines for measures to implement a number of articles of the Law on Health Insurance; Circular No. 59/2015/TT-BLDTBXH dated December 29, 2015 of the Ministry of Labor, War Invalids and Social Affairs on guidelines for measures to implement a number of articles of the Law on Social Insurance on compulsory social insurance, the payment rates and payment obligations and methods of payment of compulsory social insurance are prescribed in the Law on Social Insurance; the payment rates and payment obligations and methods of payment of health insurance are regulated in Decree No. 146/2018/ND-CP of the Government.

Therefore, the exemption and reduction of compulsory social insurance and health insurance premiums fall under the competence of the National Assembly and the Government.

Vietnam Social Insurance provides information for the Ministry of Education and Training to summarize and report to the Prime Minister./.