Grab drivers and delivery-partners, online sellers to be proposed to participate in compulsory social insurance in Vietnam?
Grab drivers and delivery-partners, online sellers to be proposed to participate in compulsory social insurance in Vietnam?
Recently, at the 5th conference of the 15th National Assembly full-time deputies, discussions on certain topics were presented to the Parliament during the 7th session of the 15th National Assembly, which was held in Hanoi.
During the Conference, delegates discussed various opinions on the proposed amendment to the Law on Social Insurance.
Regarding compulsory social insurance: The vice chairman of the provincial delegation of the National Assembly expressed the view that the draft Law stipulates that the Standing Committee of the National Assembly decides on the participation in compulsory social insurance for other subjects with stable and regular incomes, which is not appropriate, as it falls within the state management authority of the Government.
In reality, subjects with stable incomes such as technology workers (Grab drivers and delivery-partners, online sellers, etc.) constitute a large labor force with stable incomes, even higher than the ordinary labor force working in enterprises. However, to date, the Government has not provided timely solutions to include these subjects in compulsory social insurance...
Therefore, it is proposed to include provisions in the draft law instructing the Government to regulate in detail and set a specific timeline for the implementation of compulsory social insurance for certain groups of technology workers (Grab drivers and delivery-partners) by 2026.
Source: Government Electronic Portal
Grab drivers and delivery-partners, online sellers to be proposed to participate in compulsory social insurance in Vietnam? (Image from the Internet)
Which entities are subjects of application of compulsory social insurance in Vietnam?
Pursuant to the provisions of Article 2 of the Law on Social Insurance 2014, subjects of application of compulsory social insurance include the following subjects:
- Employees being Vietnamese citizens shall be covered by compulsory social insurance, including:
+ Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full 3 months and under 12 months, including also labor contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labor law;
+ Persons working under labor contracts with a term of between full 1 month and under 3 months;
+ Officials and public employees;
+ Defense workers, public security workers and persons doing other jobs in cipher organizations;
+ Officers and professional army men of the people's army; officers and professional non-commissioned officers and officers and technical non- commissioned officers of the people's public security; and persons engaged in cipher work and enjoying salaries like army men;
+ Non-commissioned officers and soldiers of the people’s army; non- commissioned officers and soldiers on definite-term service in the people’s public security; army, public security and cipher cadets who are entitled to cost- of-living allowance;
+ Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;
+ Salaried managers of enterprises and cooperatives;
+ Part-time staffs in communes, wards and townships.
- Employees who are foreign citizens working in Vietnam with work permits or practice certificates or practice licences granted by competent Vietnamese agencies shall be covered by compulsory social insurance under the Government’s regulations.
- Employers covered by compulsory social insurance include state agencies, non-business units and people's armed forces units; political organizations, socio-political organizations, socio-politico-professional organizations, socio-professional organizations and other social organizations; foreign agencies and organizations, and international organizations operating in the Vietnamese territory; enterprises, cooperatives, individual business households, cooperative groups, and other organizations and individuals that hire or employ employees under labor contracts.
- Persons covered by voluntary social insurance are Vietnamese citizens aged full 15 years or older and not defined in Clause 1 of this Article.
- Agencies, organizations and individuals involved in social insurance.
What are the compulsory social insurance payment rates in Vietnam in 2024?
Pursuant to Clause 2, Article 3 of the Law on Social Insurance 2014, compulsory social insurance means a form of social insurance organized by the State in which employees and employers are required to participate.
Compulsory social insurance is a form of protection that replaces or compensates a portion of the income of workers when they experience a reduction or loss of income due to illness, maternity, occupational accidents, occupational diseases, reaching the retirement age, or death, based on contributions to the social insurance fund
Pursuant to the provisions of Articles 85, 86 of the Law on Social Insurance 2014, Article 57 of the Law on Employment 2013, Decision 595/QD-BHXH of 2017, regulations on compulsory social insurance payment rates in 2024 are as follows:
- For employers:
+ Social insurance payment rate: Social insurance payment rate of the employer: 17%, of which 3% to the sickness and maternity fund; 14% to the retirement and survivorship allowance fund.
+ Unemployment insurance fund: 1%
+ Health insurance fund: 3%
+ Occupational accident and occupational disease fund: 0,5%
- For Vietnamese employees:
+ Compulsory social insurance: 8%
+ Health insurance: 1,5%
+ Unemployment insurance: 1%
Thus, the compulsory social insurance payment rates for 2024 are as follows:
The employer's payment rate for compulsory insurances in 2023 is 21.5%.
The employee's payment rate for compulsory insurances is 10.5%.
*Note:
These payment rates apply to Vietnamese citizens.
Pursuant to Resolution 104/2023/QH15, starting from July 1, 2024, the salary reform policy under Resolution 27-NQ/TW in 2018 will be implemented. Specifically, the statutory pay rate will be officially annulled from this point forward. Therefore, there may be changes in the social insurance payment rates in the future.
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