Are social insurance premiums included in salary during probation period? What are the regulations on participation in social insurance, health insurance, unemployment insurance?
Pursuant to Clause 1 Article 24 and Clause 1 Article 27 of the Labor Code 2019 of Vietnam:
What are the regulations on probation contract?
- An employer and an employee may include the contents of the probation in the employment contract or enter into a separate probation contract.
- The probation contract must include the probation period and the contents specified in Points a, b, c, dd, g and h Clause 1 Article 21 of this Code.
- Probation is not allowed if the employee works under an employment contract with a duration of less than 01 month.
Are social insurance premiums included in salary during probation period?
How to handle in case of termination of probationary period?
- Upon the expiry of the probationary period, the employer shall inform the employee of the probation result.
If the result is satisfactory, the employer shall keep implementing the concluded employment contract, if there is one, or conclude the employment contract.
If the result is not satisfactory, the employer may terminate the concluded employment contract or the probation contract.
- During the probationary period, either party has the right to terminate the concluded probation contract or employment contract without prior notice and compensation obligation.
Thus, according to the above provisions, the employer and the employee can agree on the probationary work, the rights and obligations of the two parties during the probationary period. If there is an agreement on probation, the parties may enter into a probation contract, and when the probation is satisfactory, the employer must enter into an employment contract with the employee.
Levels and methods of payment by employees covered by compulsory social insurance:
On the other hand, pursuant to Clause 3 Article 85 of the Law on Social Insurance 2014 of Vietnam, the levels and methods of payment by employees covered by compulsory social insurance are stipulated as follows:
“3. Employees who neither work nor receive salary for 14 working days or more in a month are not required to pay social insurance premiums in that month. This period shall not be counted for enjoyment of social insurance regimes, except cases of maternity leave.”
Thus, in case there is both a probationary period and a working time under an employment contract in a month, but the total time of neither working nor receiving wages is 14 or more working days in the month, the employees are not required to pay social insurance premiums in that month.
What are the regulations on participation in social insurance, health insurance and unemployment insurance?
Pursuant to Article 168 of the Labor Code 2019 of Vietnam on participation in social insurance, health insurance and unemployment insurance:
1. Employers and employees shall participate in compulsory social insurance, compulsory health insurance and unemployment insurance and enjoy the benefits in accordance with provisions of the law on social insurance, health insurance and unemployment insurance.
Employers and employees are encouraged to obtain other kinds of insurance for employees.
2. The employer shall not be required to pay salary for an employee when the employee is on leave and receiving social insurance benefits, unless otherwise agreed by both parties.
3. Where an employee is not covered by compulsory social insurance, compulsory health insurance or unemployment insurance, the employer shall, in addition to and at the same time with salary payment, pay the employee an amount equal to the compulsory social insurance, compulsory health insurance, unemployment insurance premiums payable by the employer in accordance with regulations of law on social insurance, health insurance and unemployment insurance.
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