If an employee enters into many employment contracts in Vietnam, shall his or her premium be paid according to the employment contract of which the salary is the highest?
- Vietnam: How many types of employment contracts are there according to current regulations?
- If an employee enters into many employment contracts in Vietnam, shall his or her premium be paid according to the employment contract of which the salary is the highest?
- What are the social insurance premiums for employees entering into many employment contracts in Vietnam in 2023?
Vietnam: How many types of employment contracts are there according to current regulations?
Pursuant to Article 20 of the Labor Code 2019, it is stipulated as follows:
Types of employment contracts
1. An employment contract shall be concluded in one of the following types:
a) An indefinite-term employment contract is a contract in which the two parties neither fix the term nor the time of termination of the contract;
b) A fixed-term employment contract is a contract in which the two parties fix the term of the contract for a duration of up to 36 months from the date of its conclusion.
Accordingly, at present, there will be two types of employment contracts: indefinite-term employment contract and fixed-term employment contract.
If an employee enters into many employment contracts in Vietnam, shall his or her premium be paid according to the employment contract of which the salary is the highest?
If an employee enters into many employment contracts in Vietnam, shall his or her premium be paid according to the employment contract of which the salary is the highest?
According to the provisions of Clause 2, Article 13 of the Law on Health Insurance 2008 as amended by Clause 7, Article 1 of the Law on amendments to the Law on Health insurance 2014, stipulates the Health insurance rates and responsibilities to pay health insurance premiums as follows:
Health insurance rates and responsibilities to pay health insurance premiums
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2. In case an individual concurrently prescribed as more than one policy-holder in Article 12 of this Law, his or her premium shall be paid due to the first prescribed policy-holder according to the order of the policy-holders prescribed in Article 12 of this Law.
In case an insured person prescribed in point a Clause 1 Article 12 of this Law concludes one or more than one indefinite or at least full 3 month labor contract, his or her premium shall be paid according to the labor contract of which the salary is the highest.
In case an individual prescribed in point b clause 1 Article 12 of this Law is concurrently prescribed as different policy holder in Article 12 of this Law, his or her premium shall be paid by the social insurance organization, the State budget and the People’s Committees of the commune respectively.
In addition, the subjects participating in health insurance specified in Clause 1, Article 12 of the Law on Health Insurance 2008 as amended by Clause 6, Article 1 of the Law on amendments to the Law on Health insurance 2014 include:
Persons eligible for health insurance
1. The group whose insurance are paid by the employers and employees, including:
a) Employees on indefinite or at least full three-month contracts; salaried business managers; officials and civil servants (hereinafter referred to as employees).
b) Part-time officers in communes, wards and towns under the regulations of the law.
Thus, according to the above provisions, employees who enter into many contracts (with one or more employment contracts of indefinite term or employmet contracts with a term of full 3 months or more) shall pay insurance premiums under employment contracts have the highest salary.
What are the social insurance premiums for employees entering into many employment contracts in Vietnam in 2023?
For employees who enter into many contracts, the payment of social insurance premiums is specified in Clause 4, Article 85 of the Law on Social Insurance 2014 as follows:
Levels and methods of payment by employees covered by compulsory social insurance
1. Employees defined at Points a, b, c, d, dd and h, Clause 1, Article 2 of this Law shall monthly pay 8% of their monthly salary to the retirement and survivorship allowance fund.
Employees defined at Point i, Clause 1, Article 2 of this Law shall monthly pay an amount equal to 8% of the statutory pay rate to the retirement and survivorship allowance fund.
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4. An employee defined at Point a or b, Clause 1, Article 2 of this Law who signs labor contracts with many employers shall only pay social insurance premiums under Clause 1 of this Article for the first-signed labor contract.
Thus, according to the above provisions, employees specified at Points a and b, Clause 1, Article 2 of the Law on Social Insurance 2014 shall only pay social insurance premiums when entering into employment contracts with many enterprises. in Clause 1, Article 85 of the 2014 Law on Social Insurance 2014 for the first signed employment contracts.
Accordingly, the social insurance payment rates for employees entering into multiple employment contracts are as follows:
The employees specified at Points a, b, c, d, dd and h, Clause 1, Article 2 of the Law on Social Insurance 2014, shall pay 8% of their monthly salary to the retirement and survivorship fund every month.
Employees specified at Point i, Clause 1, Article 2 of the Law on Social Insurance 2014, must pay 8% of the statutory pay rate every month to the retirement and survivorship fund.
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