How is the business fined for late payment of insurance premiums?

Clause 3, Article 122 of the Law on Social Insurance 2014 clearly stipulates the handling of violations of late payment of insurance:

    3. Employers that commit violations specified in Clauses 1, 2 and 3, Article 17 of this Law for 30 days or more, in addition to having to pay the unpaid or late payment amounts in full, and be handled according to regulations. according to the provisions of law, the interest must also be paid twice the average investment interest rate of the social insurance fund of the preceding year, calculated on the amount and time of late payment; if they fail to do so, at the request of a competent person, the bank, other credit institution, the State Treasury shall have to deduct from the employer's deposit account to pay late payment amount and interest of this amount to the social insurance agency.

Enterprises can delay payment of social insurance but only 29 days later than the prescribed time limit. In case of late payment of social insurance contributions of 30 days or more, enterprises will not only be handled for violations but also be charged additional interest.

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The interest rate is equal to 02 times the average investment interest rate of the social insurance fund of the preceding year on the amount and time of late payment.

According to Notice 89/TB-BHXH dated January 13, 2022 of Vietnam Social Insurance, the interest rate for late payment of insurance premium applied for 2022 will be calculated as follows:

Social insurance, unemployment insurance: 0.7316%/month

Health insurance: 0.5434%/month

Employers who delay paying social insurance contributions for 30 days or more will be handled for violations of the law. At point a, clause 5, Article 39 of Decree 12/2022/ND-CP, the violating employer will be fined as follows:

    5. A fine ranging from 12% to 15% of the total amount of compulsory social insurance and unemployment insurance premium payment at the time of making the administrative violation record but not exceeding VND 75,000,000 for the employer have one of the following behaviors:

    a) Late payment of compulsory social insurance and unemployment insurance;

In addition, in Clause 1, Article 6 of Decree 12/2022/ND-CP, an individual employer who owes insurance money beyond the prescribed time limit will be fined 12% - 15% of total amount of insurance payable but no more than 75 million. If the employer is an organization, the fine will be doubled from 24% - 30% of the total amount of insurance payable but not exceeding 150 million VND.

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