Seafood businesses propose a 0.5% reduction in unemployment insurance contributions

DNHN - Fishery businesses have proposed reducing the unemployment insurance premium from 1% to 0.5% by the end of 2023; however, Vietnam Social Insurance has stated that this reduction is subject to the National Assembly's decision. festival...

The Vietnam Association of Seafood Exporters and Producers (VASEP) has recently proposed several policies to eliminate obstacles for seafood businesses, such as social insurance and unemployment insurance policies.

Accordingly, VASEP proposes lowering the employer's unemployment insurance premium from 1% to 0.5%, suspending payments to the Insurance Fund for Occupational Accidents and Diseases, and extending the payment deadline for the mandatory social insurance fund.

Vietnam Social Security stated, in response to VASEP's proposal, that the Employment Law stipulates that the employer's unemployment insurance premium rate is equal to 1% of the monthly salary fund of employees who participate in unemployment insurance. Karma.

The National Assembly has the authority to approve VASEP's proposal to reduce the contribution rate to the Unemployment Insurance Fund for businesses from 1% to 0.5% until the end of 2023.

In addition, the Law on Occupational Safety and Health specifies: "The Government shall specify the level of contribution to the occupational accident and disease insurance fund based on its ability to maintain the fund's balance. "occupational illness - occupational illness"

Consequently, the current law does not permit a temporary suspension of contributions to the Occupational Accident and Disease Insurance Fund. The National Assembly must also decide on the VASEP proposal to suspend the payment of occupational accident and disease insurance until the end of 2023.

Regarding the extension of the deadline for payment to the Compulsory Social Insurance Fund, Vietnam Social Insurance confirmed that this regulation falls under the authority of the Government and not the Industry.

Alternatively, Vietnam Social Security has previously proposed support options such as reducing contributions to the Insurance Fund for Occupational Accidents and Diseases, temporarily suspending contributions to the Social Insurance Fund (Fund) retirement and death), and supporting employees from the Unemployment Insurance Fund.

The preceding proposals have addressed the VASEP's recommendations regarding social insurance and unemployment insurance. Vietnam Social Insurance stated that it will continue to collaborate with authorities to finalise policy proposals upon request in the near future.

Previously, in 2021, the government issued Resolution 116/NQ-CP to assist employers affected by the Covid pandemic in overcoming the difficulties caused by the Covid-19 epidemic. -19 from the Unemployment Compensation Fund. The employer's contribution to the monthly salary fund of employees subject to unemployment insurance was reduced from 1% to 0% at that time. The time frame is between October 1, 2021 and September 30, 2022.

Since October 1, 2022, employers are no longer eligible for a premium reduction for unemployment insurance. The unemployment insurance premium for eligible employees has returned to 1% of their monthly salary.

According to Vietnam Social Insurance statistics, the entire industry has reduced contributions to Social Insurance Funds and paid support from the Unemployment Insurance Fund, with a total budget of more than VND 45,000 billion for employees and employers. impacted by the Covivirus-19 pandemic.

According to Dao Ngoc Dung, Minister of Labour - Invalids and Social Affairs, unemployment insurance serves as a "midwife" for the labour market.

Previously, the Unemployment Insurance Fund had approximately VND 100,000 billion and approximately VND 41,000 billion was used to directly support employees; however, the fund's balance is now only at a safe level, which is not very much.

Currently, the unemployment insurance premium is governed by the Employment Law of 2013 as follows: Employees contribute 1% of their monthly salary; the employer contributes 1% of the monthly salary fund of participating employees.

The State shall contribute up to 1% of the monthly salary fund on which unemployment insurance premiums are based for central budget-guaranteed participants in unemployment insurance. The maximum unemployment insurance premium is twenty times the base salary (the current base salary is 1,8 million VND per month, per Decree 24/2023-CP).

According to Article 58 of the Employment Law of 2013, the following salary is used to calculate unemployment insurance premiums: The monthly salary on which unemployment insurance premiums are based for employees subject to the state-mandated salary structure. The salary used as the basis for mandatory social insurance payments must comply with the provisions of the Social Insurance Law.

If the monthly salary used to calculate unemployment insurance premiums is greater than 20 months of basic salary, then the monthly salary used to calculate unemployment insurance premiums is equal to 20 months of basic salary at the time of payment of unemployment insurance premiums.

If the employee pays unemployment insurance premiums according to the salary regime established by the employer, the monthly salary on which unemployment insurance premiums are based is the salary used as the basis for payment of mandatory social insurance under the provisions of this Law. Social insurance legislation.

If the monthly salary on which unemployment insurance premiums are based is greater than 20 months' regional minimum salary, the monthly salary on which unemployment insurance premiums are based is equal to 20 months' regional minimum salary as prescribed by the Labour Code at the time the premium is paid. Unemployment benefits.

PV (t/h)