Proposal to Expand the Subjects Participating in Mandatory Social Insurance? Who are the Current Subjects Participating in Mandatory Social Insurance?
Who are the current participants in mandatory social insurance?
According to Article 2 of the Social Insurance Law 2014, the participants of mandatory social insurance include:
(1) Employees required to participate in mandatory social insurance
- Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts, or labor contracts for specific jobs with a duration of 03 months to under 12 months, including labor contracts signed between the employer and the legal representative of persons under 15 years old in accordance with labor law;
- Persons working under labor contracts with a duration of 01 month to under 03 months;
- Officials and public employees;
- National defense workers, police workers, and other employees in cryptographic organizations;
- Officers, professional soldiers of the People's Army; operational officers, non-commissioned officers, professional technical officers, non-commissioned officers of the People's Public Security; cryptographic workers receiving salaries like military personnel;
- Non-commissioned officers, soldiers of the People's Army; non-commissioned officers, soldiers of the People's Public Security serving for a fixed period; military, police, cryptographic students receiving monthly living allowances;
- Persons working abroad under contracts stipulated in the Law on Vietnamese employees working abroad under contracts;
- Managers of enterprises, managers operating cooperatives receiving salaries;
- Persons performing part-time activities in communes, wards, commune-level towns.
Employees who are foreign citizens working in Vietnam are required to participate in mandatory social insurance if they have a work permit, professional practice certificate, or practice license issued by a competent authority in Vietnam and have an indefinite-term labor contract or a definite-term labor contract of 01 year or more with a Vietnamese employer.
However, if a foreign employee falls into one of the following cases, they are not required to participate in mandatory social insurance:
- Foreign employees internally transferred within the enterprise as managers, executive directors, specialists, and technical laborers of a foreign enterprise that has established a commercial presence in Vietnam, who temporarily move within the enterprise to the commercial presence in Vietnam and have been employed by the foreign enterprise for at least 12 months prior.
- Employees who have reached the retirement age as stipulated in Article 169 of the Labor Code 2019.
(2) Employers required to participate in mandatory social insurance
Employees who are Vietnamese citizens subject to mandatory social insurance participation include:
- Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts, or labor contracts for specific jobs with a duration of 03 months to under 12 months, including labor contracts signed between the employer and the legal representative of persons under 15 years old in accordance with labor law;
- Persons working under labor contracts with a duration of 01 month to under 03 months;
- Officials and public employees;
- National defense workers, police workers, and other employees in cryptographic organizations;
- Officers, professional soldiers of the People's Army; operational officers, non-commissioned officers, professional technical officers, non-commissioned officers of the People's Public Security; cryptographic workers receiving salaries like military personnel;
- Non-commissioned officers, soldiers of the People's Army; non-commissioned officers, soldiers of the People's Public Security serving for a fixed period; military, police, cryptographic students receiving monthly living allowances;
- Persons working abroad under contracts stipulated in the Law on Vietnamese employees working abroad under contracts;
- Managers of enterprises, managers operating cooperatives receiving salaries;
- Persons performing part-time activities in communes, wards, commune-level towns.
Employees who are foreign citizens working in Vietnam are required to participate in mandatory social insurance if they have a work permit, professional practice certificate, or practice license issued by a competent authority in Vietnam and have an indefinite-term labor contract or a definite-term labor contract of 01 year or more with a Vietnamese employer.
However, if a foreign employee falls into one of the following cases, they are not required to participate in mandatory social insurance:
- Foreign employees internally transferred within the enterprise as managers, executive directors, specialists, and technical laborers of a foreign enterprise that has established a commercial presence in Vietnam, who temporarily move within the enterprise to the commercial presence in Vietnam and have been employed by the foreign enterprise for at least 12 months prior.
- Employees who have reached the retirement age as stipulated in Article 169 of the Labor Code 2019.
Proposal to extend the participants of mandatory social insurance? Who are the current participants in mandatory social insurance? (Image from Internet)
Proposal to extend the participants of mandatory social insurance?
According to Article 31 of the Draft Amendment Social Insurance Law, the subjects participating in mandatory social insurance include:
(1) Employees who are Vietnamese citizens subject to mandatory social insurance participation include:
- Persons working under indefinite-term labor contracts, definite-term labor contracts from 01 month or more, including cases where the two parties agree under different names but the content shows employment with compensation, salary, and management, direction, control of one party;
- Officials and public employees;
- National defense workers, police workers, and other employees in cryptographic organizations;
- Officers, professional soldiers of the People's Army; operational officers, non-commissioned officers, professional technical officers, non-commissioned officers of the People's Public Security; cryptographic workers receiving salaries like military personnel;
- Non-commissioned officers, soldiers of the People's Army; non-commissioned officers, soldiers of the People's Public Security serving for a fixed period; military, police, cryptographic students receiving monthly living allowances; standing militia;
- Persons working abroad under contracts stipulated in the Law on Vietnamese employees working abroad under contracts;
- Persons enjoying spousal policies at Vietnamese representative agencies abroad; (proposed additional subject)
- Managers of enterprises, managers operating cooperatives receiving salaries;
- Persons performing part-time activities in communes, wards, commune-level towns;
- Employees mentioned at point a of this clause working part-time with monthly salaries equal to or higher than the lowest mandatory social insurance contribution base salary as stipulated at point e, clause 1, Article 37 of the amended Social Insurance Law (proposed additional subject)
- Household business heads (proposed additional subject)
- Managers of enterprises, managers operating cooperatives not receiving salaries. (proposed additional subject)
(2) Employees who are foreign citizens working in Vietnam subject to mandatory social insurance participation when:
- They have a work permit, professional practice certificate, or practice license issued by a competent authority in Vietnam;
- They have an indefinite-term labor contract, or a definite-term labor contract from 12 months or more with a Vietnamese employer except for cases of internal enterprise transfers or reaching retirement age or being subject to international agreements to which Vietnam is a signatory, which have different regulations. (proposed additional subject)
(3) Employers subject to mandatory social insurance participation include:
- State agencies, public service providers;
- Agencies, units, enterprises under the People's Army, People's Public Security, and cryptographic organizations;
- Political organizations, socio-political organizations, socio-political-professional organizations, socioeconomic-professional organizations, and other social organizations;
- Foreign organizations, international organizations operating within Vietnam's territory;
- Enterprises, cooperatives, individual business households, cooperative groups, other organizations, and individuals hiring employees under labor contracts.
State policies on social insurance under the draft amended Social Insurance Law?
According to Article 6 of the Draft Amendment Social Insurance Law, the State's policies on social insurance include:
- Ensuring the rights and lawful benefits of organizations and individuals participating in social insurance; ensuring payment of social pension benefits from the fund.
- Protecting the social insurance fund and having measures for its preservation and growth.
- Supporting voluntary social insurance participants.
- Encouraging localities to balance budgets and mobilize social resources to provide higher social pension benefits.
- Prioritizing the development of policies, improving social insurance laws; developing a system to implement social insurance policies.
- Encouraging participation in supplementary pension insurance.
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