1. What is SI Duplication? 

SI duplication refers to the situation where an employee participates in SI at multiple companies or units within the same period. This leads to multiple contributions, causing waste and management difficulties while affecting the insurance rights of the employees.

2. Causes of SI Duplication 

Some common causes of SI duplication include:

• Employees changing jobs without completing the SI book closing procedure: When an employee leaves their old company and transfers to a new one, if the closing procedure is not completed in a timely manner, it is easy to lead to SI duplication.
• Employees signing contracts at multiple places: In industries that allow working in multiple places, employees may sign labor contracts with several companies, each of which contributes to their SI.
• System errors or mistakes from the company: Sometimes, errors from the SI management system or mistakes from the HR department can also lead to SI duplication.

3. Impact of SI Duplication

• Increased costs for businesses and employees: SI duplication not only increases costs for businesses but can also lead employees to pay additional SI, health insurance (HI), unemployment insurance (UI) that they should not need to pay.
• Complicated management and insurance claims procedures: Duplication leads to difficulties in processing and is likely to cause errors, affecting employees’ rights when withdrawing from social insurance or conducting related procedures.

4. Handling SI Duplication 

When detecting SI duplication, both businesses and employees need to take the following steps:

• Verify the process of participating in SI: Check SI contribution information via the VssID application or contact the SI authority directly to know the exact time of duplication.
• Complete the SI refund procedure: If there is a case of duplication, employees or businesses can apply for a refund of the duplicated contributions at the SI authority.

The company performing the procedure to reduce SI duplication must submit documents including:

1. Application for participation, adjustment of SI, HI information according to Form TK1-TS;
2. List of employees participating in SI, HI, UI, occupational accident and disease insurance according to Form D02-LT attached with Decision 1040/QĐ-BHXH;
3. Information summary (Form D01-TS) (if any); Documents confirming the process of SI contribution from units, Documents proving the duplication.

Closing the SI book when leaving jobs: 

To avoid SI duplication, employees should close their SI book at the old company before signing a contract with the new company. Businesses should also assist employees in completing this procedure.

5. Notes to Avoid SI Duplication

• Timely update information: Employees should regularly update their SI participation information to detect abnormalities early. Regular checks on VssID or SI services of Vietnam will help limit this situation.
• Businesses need to close the SI book according to regulations: When employees leave their jobs, businesses need to close the book promptly to ensure their rights are not affected when participating in the new unit.

Conclusion:

 SI duplication is an issue that significantly affects the rights of employees and the costs of businesses. Timely detection and handling not only help optimize costs but also protect the SI rights of employees. Businesses and employees need to pay attention to avoid this situation and work closely with the SI authority to handle issues quickly as they arise.

If you are facing issues related to SI duplication, do not hesitate to contact TPM’s professional team. We are always ready to assist you in handling the reduction of SI duplication process.

Do Thi Thu Quynh – Head of Payroll and HR services – quynh.do@tpm.com.vn

References: 

• Social Insurance Law No. 58/2014/QH13 dated November 20, 2014