How much is the compulsory social insurance of Vietnam premium in 2022? Subjects and methods of payment of compulsory social insurance like?
What are the compulsory social insurance of Vietnam?
Pursuant to Clause 1 Article 4 of the Procedure issued together with the Decision No. 595/QD-BHXH in 2017, the policy holders are required to participate in compulsory social insurance of Vietnam as follows:
The employees who are Vietnamese citizens are subject to the compulsory social insurance of Vietnam, including:
- The persons who work under indefinite term labor contract, definite term labor contract, seasonal labor contract or labor contract for a certain job with a term of between full 03 months and less than 12 months, including the labor contract signed between the unit with the legal representative of the persons under 15 years of age in accordance with regulations of law on labor;
- Contract workers whose term is from 1 to less than 3 months (from January 1, 2018);
- Officials and public employees prescribed in law on officials and public employees;
- The national defense workers, public security workers and other people working in the cipher organization in case the social insurance authority of the Ministry of National Defense or the Ministry of Public Security hands over to the social insurance authority of the province;
- Salaried managers of enterprises and cooperatives;
- Part-time staffs of communes, wards and townships;
- Contracted guest workers defined in the Law on Vietnamese guest workers participating in compulsory social insurance according to the Government's Decree No. 160115/2015/ND-CP dated November 11, 2015 on elaboration of some Articles of the Law on Social Insurance regarding compulsory social insurance shall be applied to the following contracts:
+ Contracts on sending workers abroad with enterprises providing guest worker services or non-business organizations licensed to send workers abroad;
+ Contracts on sending workers abroad with contract-winning or -receiving enterprises or offshore-investing organizations or individuals that send workers abroad;
+ Contracts on sending workers abroad to work in the form of skill improvement internship with enterprises sending workers abroad to work in the form of skill improvement internship;
+ Personal contracts.
- Beneficiaries of spouse allowance in overseas Vietnamese representative missions prescribed in Clause 4 Article 123 of Law on social insurance;
- The employees specified under Points 1.1, 1.2, 1.3, 1.4, 1.5 and 1.6 of this Clause who are sent to study, practice or work in the country or abroad but still receive the salary in the country subject to the compulsory social insurance.
Therefore, according to the above provisions, the persons who work under labor contracts with indefinite term are the subjects of compulsory social insurance Vietnam payment as prescribed by law.
What payment is made? Which subject and method of payment of compulsory social insurance of Vietnam premium under the Decision No. 595/QD-BHXH as how?
What is the responsibility to pay the compulsory social insurance of Vietnam premium?
According to regulations in Article 5 of the Decision No. 595/QD-BHXH in 2017 and Article 1 of Decision No. 505/QD-BHXH in 2020, premiums and responsibility shall be specified as follows:
"Article 5. The payment rate and responsibility are specified in Article 160; 85 and 86 of the Law on social insurance and its guiding documents.
1. Payment rate and responsibility of employees
1.1. The employees specified under Points 1.1, 1.2, 1.3, 1.4, 1.5 and Item b, Point 1.7, Clause 1 of Article 4 shall pay 8% of monthly salary to the retirement and survivorship fund.
1.2. The employees specified under Point 1.6, Clause 1 of Article 4 shall pay 8% of base salary to the retirement and survivorship fund.
1.3. The employees specified under Item a, c and Item d, Point 1.7, Clause 1, Article 4: the monthly payment rate to the retirement and survivorship fund is equal to 22% of monthly salary paid for social insurance of the employees before they go to work abroad, for the employees who have participated in compulsory social insurance; 22% of 02 times of base salary for the employees who have not participated in compulsory social insurance or participated in compulsory social insurance but received a lump-sum social insurance.
1.4. The employees specified under Point 1.8, Clause 1 of Article 4: The monthly payment rate to the retirement and survivorship fund is equal to 22% of monthly salary paid for social insurance of the employees previously to the employees who have participated in compulsory social insurance; is equal to 22% of 02 times of base salary for the employees who have not participated in compulsory social insurance or have participated in compulsory social insurance but received a lump-sum social insurance.
1.5. The employees specified in Clause 2 of Article 4: From January 01, 2022, the employees shall pay 8% of their monthly salary to the retirement and survivorship fund.
1.6. If they have not participated in compulsory social insurance or have participated in compulsory social insurance but have received lump sum social insurance benefits, they shall pay 22% of twice statutory pay rate.
2. Premium rate and responsibility of the units specified in Clause 3 of Article 4
2.1. The units shall make monthly payment based on the salary fund paid for social insurance premium of the employees specified under Points 1.1, 1.2, 1.3, 1.4, 1.5 and Item b, Point 1.7, Clause 1 of Article 4 as follows:
a/ 3% to the sickness and maternity fund;
b) 14% to the retirement and survivorship fund.
2.2. The units shall pay 14% of base salary into the retirement and survivorship fund for their employees specified under Point 1.6, Clause 1 of Article 4.1.
2.3. The units shall make monthly payment of premium based on the salary fund for payment of social insurance premium of their employees specified in Clause 2, Article 4 as follows:
a/ 3% to the sickness and maternity fund;
b) 14% of the abovementioned payroll paid into the retirement and death benefit fund as of January 01, 2022."
In this case, the compulsory social insurance premium paid to the employees who do not determine the monthly payment period is equal to 8% of base salary to the retirement and survivorship fund. The units shall make monthly payment of premium based on the salary fund of social insurance premium including 3% to the sickness and maternity fund and 14% to the retirement and survivorship fund.
What is the payment for compulsory social insurance of Vietnam?
Pursuant to Article 7 of the Procedure issued together with the Decision No. 595/QD-BHXH in 2017 amended by Clause 13 Article 1 of the Decision No. 505/QD-BHXH in 2020 Social insurance premiums shall be paid by the following methods:
First loan: Monthly payment
- If an enterprise, cooperative, household business or cooperative group engages in agriculture, forestry, fishery or salt production and pays salary by products or piecework, it shall register the method of payment every 03 or 06 months with the social insurance authority; the social insurance authority shall cooperate with the labor authority in inspecting the employer's contributions before deciding the method of payment. The employer shall fully transfer money to social insurance funds at the latest.
Second rank: Payment for every 03 months or every 06 months
- Employers that are enterprises, cooperatives, household businesses and artels operating in the agriculture, forestry, aquaculture and salt industry and paying their workers by the piece or collect flat-rate lease payments shall pay social insurance contributions on the monthly, quarterly or biannual basis. The employer shall fully transfer money to social insurance funds at the latest.
Third: Closing by locality
- The units whose head office is located in any provincial area shall register their participation in payment of social insurance premium in such provincial area as decentralized by the provincial social insurance agency.
- An enterprise's branch shall pay social insurance contributions in the area where it operates or at its parent company.
Fourth: For the employees specified under Items a, c and d, Point 1.7 Clause 1 of Article 4, the mode of payment is 03 months, 06 months or 12 months one time or one time payment is made under the time specified in the contract of sending employees to work abroad. The employees shall make payment directly to the social insurance agency before going abroad for work or through the non-business units or organizations sending the employees to work abroad.
- Where the payment is made via a non-business unit or organization sending employees to work abroad, the non-business unit or organization shall collect and pay the social insurance premium to the employees and register the mode of payment to the social insurance body.
- If an employee has his/her labor contract extended or signs a new labor contract in the receiving country, he/she shall pay social insurance contributions using the methods specified in this Article or pay insurance contributions to the social insurance authority after returning home.
Fifth years: For the employees specified under Point 1.8, Clause 1, Article 4, they shall make the payment every month, 03 months or 06 months one time through the units managing officials and public employees with their spouse to make payment to the retirement and survivorship fund.
Sixth: For the case of payment for the missing time not exceeding 06 months specified under Point 1.6, Clause 1, Article 5.
- The employees shall make one-time payment for the number of missing months through their units before leaving their jobs.
- The persons who are reserving the time of payment of compulsory social insurance of Vietnam premium or the relatives of the employees who die make one-time payment for the number of missing months at the district social insurance agency where they reside.
Thus, the mode of payment of one-time social insurance premium is specified as above.
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