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HCMC: 1,500 businesses stop social insurance payments
A high percentage of employees and businesses withdrew from social insurance participation in the first five months of this year, said the director of HCMC Social Insurance Company, Cao Van Sang.
The number of businesses dissolved or temporarily ceasing to pay social insurance had reached to nearly 1,500 over the last five months, Sang added.
As a matter of fact, 300,000 employees became jobless. The shift in production and business activities has been abrupt and challenging. The violation of social insurance laws has been rampant, Sang said.
So far this year, the HCMC Social Insurance Company received unemployment benefits applications from 45,000 labourers, an increase of 100% over the same period last year. The company has paid unemployment benefits worth of VND 178 billion (nearly US$8.5 million) for 28,000 employees.
The company has so far sued 97 companies for their total debt of VND 40.2 billion (US$ 2million) and reclaimed VND11 billion US$ 500,000)
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