Is the employer required to pay insurance for domestic worker? What is the fine of failure to pay social insurance premiums for domestic workers?
Are domestic workers required to participate in compulsory social insurance?
Pursuant to Clause 1 Article 2 of the Law on Social Insurance 2014 of Vietnam, subjects that must participate in compulsory social insurance include:
+ 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;
+ Cadres, civil servants 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.
Thus, the employment contract is signed with a term of 1 year, so the domestic worker is one of the cases that must participate in the compulsory social insurance.
Chủ nhà có phải đóng bảo hiểm cho người lao động giúp việc không?
Is the employer required to pay insurance premiums for domestic worker?
Pursuant to the provisions of Clause 4 Article 89 of Decree 145/2020/ND-CP of Vietnam, the employer's responsibility to pay insurance premiums:
- The employer is entitled to pay the employee, together with the salary, an amount equal to the mandatory social insurance and health insurance premium payable by employers as prescribed by relevant laws. The employee will decide whether to participate in social insurance and health insurance.
- In case the employee enters into more than one employment contract to work as a domestic worker, the social insurance and health insurance premiums payable by the employers shall vary according to each contract.
Thus, the employer is not responsible for directly paying social insurance and health insurance premiums, but will pay the salary that includes social insurance and health insurance premiums for the domestic workers, so that they can participate in these insurances on their own.
Pursuant to Article 86 of the Law on Social Insurance 2014 of Vietnam on levels and methods of payment by employers:
- Employers shall make monthly payments calculated based on the salary funds on which social insurance premiums are based for employees defined at Points a, b, c, d, dd and h, Clause 1, Article 2 of this Law as follows:
+ 3% to the sickness and maternity fund;
+ 1% to the labor accident and occupational disease fund;
+ 14% to the retirement and survivorship allowance fund.
Thus, the employer of domestic worker must pay an additional 18% of the salary paid to the domestic worker so that they can pay social insurance premiums by themselves.
What is the fine of failure to pay social insurance premiums for domestic workers?
Pursuant to Clause 3 Article 30 of Decree 12/2022/ND-CP of Vietnam on the fine for the act of failure to pay social insurance premiums for the domestic workers:
“3. A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed upon an employer for commission of one of the following violations:
a) Keeping personal identity papers of the domestic worker;
b) Failing to pay the domestic worker amounts of his/her social insurance and health insurance premiums in accordance with regulations of law so that the domestic worker can proactively participate in social insurance and health insurance.”
The fines for administrative violations shall be imposed upon violating individuals. The fine imposed upon an organization is VND 20.000.000 to VND 30.000.000.
Moreover, Point d Clause 5 Article 30 of Decree 12/2022/ND-CP of Vietnam on remedial measures:
“d) The employer that commits the violation in Point b Clause 3 of this Article is compelled to fully pay amounts of social insurance and health insurance premiums to domestic workers.”
Thus, the employer must pay the social insurance premiums under her/his responsibility to the employee when the time limit for salary payment is due. And employees are responsible for paying the above insurance by themselves.
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