Evading Social insurance in Vietnam will result in a prison of up to 7 years
From January 1, 2018, according to the Criminal Code, businesses evade insurance premiums of VND 1 billion or more; evading insurance premiums for 200 or more people will be sentenced to between 2 and 7 years of imprisonment.
Vietsourcing HR would like to cite some articles of the Penal Code passed by the National Assembly regarding businesses that evade the insurance obligation for employees as follows:
Article 216. Crime of evading social insurance, health insurance and unemployment insurance for employees
- Those who are obliged to pay social insurance, health insurance or unemployment insurance premiums for laborers who cheat or by other tricks do not pay or do not fully pay as prescribed for 6 months or more. In one of the following cases, which have been administratively sanctioned for such acts but still commit violations, they shall be imposed a fine of between VND 50,000,000 and VND 200,000,000, subject to non-custodial reform for up to 1 year. or a prison term of between 3 months and 1 year:
- Evading insurance premiums from VND 50,000,000 to under VND 300,000,000;
- Evading insurance premiums for between 10 and under 50 employees.
- Committing the crime in one of the following circumstances, the offender shall be liable to a fine of from VND 200,000,000 to VND 500,000,000 or face a prison term of between 06 months and 03 years:
- Committing the crime 2 times or more;
- Evading insurance premiums from VND 300,000,000 to under VND 1,000,000,000;
- Evading insurance premiums for between 50 and under 200 people;
- Failing to pay the insurance premiums already collected or deducted from the employees specified at Points a or b, Clause 1 of this Article.
- Committing the crime in one of the following circumstances, a fine of between VND 500,000,000 and 1,000,000,000 or a prison term of between 2 and 07 years:
- Evading insurance premiums of VND 1,000,000,000 or more;
- Evading insurance premiums for 200 or more people;
- Failing to pay the insurance premiums already collected or deducted from the laborers specified at Points b or c, Clause 2 of this Article.
- Offenders may also be imposed a fine of between VND 20,000,000 and VND 100,000,000, banned from holding certain posts, practicing certain occupations or doing certain jobs for between 1 and 5 years.
- Commercial legal entities committing offenses specified in this Article, shall be sanctioned as follows:
- a) Committing the crime as prescribed in Clause 1 of this Article, a fine of between VND 200,000,000 and VND 500,000,000;
- b) Committing the crime as prescribed in Clause 2 of this Article, a fine of between VND 500,000,000 and VND 1,000,000,000;
- c) Committing the crime as prescribed in Clause 3 of this Article, a fine of between VND 1,000,000,000 and 3,000,000,000
Vietsourcing HR with 11 years of experience in working with Social Insurance issue and other benefit, payroll administration, will help your business comply with Vietnamese labor laws regularly and accurately.
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