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Suspending payments to pension, death gratuity funds: Sharing difficulties with businesses

Updated: 21:28, 14/04/2020
(BGO) - The long-lasting Covid-19 pandemic has forced many businesses in Bac Giang province to narrow production and business, and even suspend operations or dissolve. Halting the obligation to pay for the pension and and death gratuity funds is a solution to help businesses ease their difficulties due to the negative impact of the pandemic.

Many workers stop working

According to the provincial Department of Labor, Invalids and Social Affairs (DOLISA), Bac Giang has more than 4,000 operational enterprises. As of April 12, 45 businesses in the locality were affected by Covid-19, including 33 foreign invested firms and 12 enterprises of other types. About 3,700 workers have had their working hours reduced, 2,400 temporarily stopped working, and more than 200 had labor contracts terminated.

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Leaders of Tan Yen district’s Federation of Labor capture production situation and workers' life at HanaKovi Co., Ltd.

Implementing the support policy of the State, enterprises in services, transportation, tourism, accommodation and catering sectors affected by the Covid-19 epidemic are allowed to suspend payments to the pension and death gratuity funds when failing to arrange jobs for laborers participating in social insurance as they have to force 50 percent of the total number of employees or higher to take temporary leave before halting production and business activities or have more than 50 percent of the total value of assets lost due to the disease (excluding properties being land).

Specializing in outsourcing apparel and clothing production, Pearl Global Co., Ltd. in Dinh Tri commune (Bac Giang city) has 963 employees. Since March, businesses have scaled down operations and maintained production moderately thanks to the remaining orders of 2019, partly aiming to retain workers. Currently, the company has to make 526 workers temporarily jobless. 

On April 8, the enterprise contacted the Department of Labor, Invalids and Social Affairs to confirm the number of employees participating in social insurance who temporarily quit their jobs and sent their dossiers to the provincial social insurance agency to ask for suspension of pension and death gratuity payments for labourers.

The Bac Giang Bus Joint Stock Company has 258 employees but these days only its management staff have gone to work. Currently more than two thirds of the unit's employees (176 people) have to temporarily stop working. The pandemic has directly affected the lives of drivers.

In order to solve difficulties for enterprises, the provincial social insurance agency and the provincia Department of Labor, Invalids and Social Affairs have instructed Bac Giang Bus Joint Stock Company to complete procedures to suspend pension and death gratuity payments for employees. The support will ease pressure placed on the business because this is a big amount of fixed monthly payment, while its revenue declines sharply.

Together removing difficulties

Currently, among the enterprises affected by Covid-19, the whole province has 11 companies proposing the DOLISA guide them to make procedures for certifying the number of employees participating in social insurance who temporarily leave their jobs to complete procedures to suspend payments to the pension and death gratuity funds to submit to the provincial social insurance agency. The enterprises mainly operate in the fields of garment, agricultural product processing, education, transport and labor export.

Eligible enterprises are allowed to suspend payments to the pension and death gratuity funds till the end of June 2020. In the case that by the end of June 2020, the Covid-19 pandemic will not ease, if enterprises propose, the provincial social insurance agency will coordinate with the Department of Labor, Invalids and Social Affairs and the Department of Finance to report to the provincial People's Committee and the Vietnam Social Security to consider the suspension until the end of December 2020.

Following the instructions of the provincial People's Committee, the provincial social insurance agency, the Department of Labor, War Invalids and Social Affairs and the Department of Finance have coordinated to guide units, organizations and enterprises in the locality affected by Covid-19 how to complete procedures to suspend payments to the pension and death gratuity funds.

Hoang Van Thang, head of the Salary - Social Insurance Division (the Department of Labor, Invalids and Social Affairs), said currently, the province's labor, invalids and social affairs sector has identified the number of employees who join social insurance and take temporary leave at four enterprises. These enterprises are completing dossiers to send to the provincial social insurance agency for suspension of payments to the pension and death gratuity funds.

Reportedly, eligible enterprises are allowed to suspend payments to the pension and death gratuity funds till the end of June 2020. In the case that by the end of June 2020, the Covid-19 pandemic will not ease, if enterprises propose, the provincial social insurance agency will coordinate with the Department of Labor, Invalids and Social Affairs and the Department of Finance to report to the provincial People's Committee and the Vietnam Social Security to consider the suspension until the end of December 2020.

Than Duc Lai, Director of the provincial social insurance agency, said the agency has issued documents guiding eligible businesses to submit dossiers to enjoy this policy. Based on the confirmation of the labour, invalids and social affairs and finance sectors, the provincial social insurance agency will receive the dossiers of enterprises online and handle them quickly in the day, creating the best conditions for the units to fully enjoy support policies in the current difficult time.

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Minh Thu

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