Legal News

[Social Insurance] Strengthen prevention and enforcement of fraudulent activities related to social insurance, unemployment insurance, and health insurance funds

2023/09/28

On September 14, 2023, the Ministry of Social Security of Vietnam announced that it would strengthen its leadership in law enforcement and strengthen the prevention and control of fraud and profiteering in social insurance, unemployment insurance, and health insurance funds. Official Letter No. 2853/BHXH-TTKT has been issued to the Ministry of Health, Ministry of Health, Local and Central People’s Committees.

In this official letter, the Ministry of Social Security of Vietnam urges the Ministry of Labor, War Invalids and Social Affairs, and the Ministry of Health to strengthen investigations into organizations that are behind in payment of social insurance, unemployment insurance, and health insurance, and to conduct medical examinations and treatment. We requested prompt action against health insurance fraud and violations by facilities and patients. At the same time, we requested the People’s Committees of each province and city to step up investigations into local institutions, organizations, and enterprises that show signs of violations in the processing of social insurance and unemployment insurance benefits.

Typical violations related to social insurance, unemployment insurance, and health insurance that still occur in many regions these days include the following:

◆Illness/Maternity Fund:
・The act of an employer applying for sickness, maternity, and health recovery benefits for workers who are working for the purpose of paid, vacation, unpaid leave, personal leave, or temporary leave.
・Employers and workers pay only six months’ worth of social insurance premiums in order to receive maternity allowances, or make social insurance premiums for the six months before childbirth abnormally high in order to increase maternity allowances. The act of agreeing to increase the amount.

◆Unemployment insurance fund:
An act in which an employer colludes with a worker to postpone the reporting period for an increase in the number of social insurance enrollees so that the worker can receive unemployment benefits even though the worker has a job.

Employers must also comply with laws regarding social insurance, unemployment insurance, and health insurance, and also check their company’s insurance enrollment and payment status to prevent delays in payments, underpayments, and artificial reporting of social insurance, unemployment insurance, and health insurance. If a situation such as a change is discovered, it must be corrected promptly.

Reference:
・Vietnam Ministry of Social Insurance Official Letter No. 2853/BHXH-TTKT dated September 14, 2023

*This article was translated by Yarakuzen.