When changing the information about participation in social insurance (social insurance), such as an increase or decrease of labor, the employer must notify the social insurance agency. However, not all businesses know the rules related to this.
When to report an increase/decrease in labor?
Under the provisions of Clause 1, Article 98 of the Law on Social Insurance 2014, the employer must notify in writing to the social insurance agency when there is a change in information participating in social insurance.
There are a number of cases where employers must report labor increase/decrease to social insurance agencies such as:
- Notice of labor increase:
- The enterprise signs a labor contract with the employee;
- The employee returns to work after an unpaid leave of 14 days or more in a month;
- The employee returns to work after being on sick or maternity leave for more than 14 days in a month;
- The employee returns to work after the end of the postponement of the employment contract, etc.
- Notice of labor decrease:
- The enterprise terminates the labor contract with the employee;
- The employee takes sick leave or maternity over 14 days in a month;
- The employee takes leave without pay for 14 working days or more in a month;
- The employee suspends the labor contract, etc.
Documents required for reporting labor increase or decrease
Article 23 of Decision 595 / QD-BHXH regulates that an application for adjustment of payment of social insurance, health insurance (health insurance) and unemployment insurance premium (UI) must include:
- Declaration of participation in and modification of information on social insurance and health insurance;
- List of the participating unit, adjusting the information of social insurance and health insurance;
- List of employees participating in social insurance, health insurance, unemployment insurance, occupational accident, and occupational disease insurance;
- Information sheet;
- In case the employee is entitled to higher health insurance benefits, additional proofs (if any) must be added.
Deadlines for notice of increase/decrease of labor
- Deadline for increasing social insurance notice:
In order to uniformly manage the employees' participation in insurance, Point a, Clause 1, Article 90 of the Law on Social Insurance 2014 states “Within 30 days from the date of conclusion of employment or recruitment contract, the employer shall submit a dossier to the social insurance agency.”
Thus, in case of an increase in employees paying the social insurance premium, the employer must notify the social insurance agency within 30 days from the date of arising.
- Deadline for decreasing social insurance notice
For cases of reduction of social insurance, Point 2.1, Clause 2, Article 50 of Decision 595 / QD-BHXH states that in case the unit makes a list of delayed reduction notices, the unit must pay the health insurance sum of the months of delayed reduction notice and the health insurance card is valid until the end of those months.
At the same time, according to Point 10.3, Section 10 of Official Dispatch No. 1734 / BHXH-QLT, when there is a decrease, the unit will report the decrease from the 1st of the following month, however, it must pay the health insurance of the following month. In case of no additional payment of card value in the following month, the units may make a dossier of reduction notice of the following month starting from the 28th of the previous month but after the notice of reduction, there shall be no notice of arising of the previous month.
With these provisions, a notice of the increase/decrease of employees participating in insurance must be made once a month.
The order, procedures and time limit for settling labor increase or decrease
With the goal of simplifying administrative procedures and applying information technology in solving jobs, most businesses today are able to make notices of increase and decrease of social insurance through electronic transactions.
With the existing records, the enterprise declares on the software and sends it to the social insurance agency.
Within 10 days after receiving the dossier from the social insurance agency, the request for an increase or reduction of labor of the enterprise will be solved.
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- Penalty for delayed labor increase report
In case the enterprise delays reporting the increase of labor, leading to the late payment and lack of insurance for employees, it will be considered as violating the regulations on payment of compulsory social insurance.
According to Clause 4, Article 38 of Decree No. 28/2020 / ND-CP, the enterprise will be subjected to a fine of 12 - 15% of the total amount of compulsory social insurance premium payment at the time of making records of administrative violations but not exceeding VND 150 million if having one of the following acts:
- Late payment of compulsory social insurance premiums;
- The payment of social insurance does not include enough participating people, but this is not considered evading.
- Penalty for delayed labor decrease report
Up to the present time, there is no penalty for enterprises that are late in reporting labor reduction. However, according to Official Letter No. 1734 / BHXH-QLT, enterprises still have to bear some responsibilities such as:
- If the notice falls after the last day of the month of reduction, it must pay all the value of the health insurance card of the following month and the card is valid to use up that month. The social insurance agency does not revoke the card in the case of reduction notice.
- If an enterprise does not pay the additional value of health insurance card following month, the enterprise can make a notice of reduction in the following month starting from the 28th of the previous month, but after the notice of reduction, it is not allowed to report the arising of the previous month.