Will the Vietnamese guest workers pay social insurance twice in Vietnam and host countries?
Do Vietnamese guest workers have to pay social insurance in Vietnam?
Pursuant to Clause 1, Article 2 of the Law on Social Insurance 2014, it stipulates the following subjects of application:
Subjects of application
1. Employees being Vietnamese citizens shall be covered by compulsory social insurance, including:
a/ 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;
b/ Persons working under labor contracts with a term of between full 1 month and under 3 months;
c/ Cadres, civil servants and public employees;
d/ Defense workers, public security workers and persons doing other jobs in cipher organizations;
dd/ 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;
e/ 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;
g/ Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;
h/ Salaried managers of enterprises and cooperatives;
i/ Part-time staffs in communes, wards and townships.
Thus, the Vietnamese guest workers defined in the Law on Vietnamese Guest Workers are subject to compulsory social insurance.
Therefore, Vietnamese guest workers still have to pay social insurance.
Will the Vietnamese guest workers pay social insurance twice in Vietnam and host countries?
Will the Vietnamese guest workers pay social insurance twice in Vietnam and host countries?
According to the provisions of Clause 1, Article 6 of the Law on Vietnamese guest workers 2020, the rights and obligations of Vietnamese guest workers are prescribed as follows:
Rights and obligations of Vietnamese guest workers
1. Vietnamese guest workers shall have rights to:
a) be provided with Vietnamese regulations and law on Vietnamese guest workers; policies, laws, customs and traditions of host countries related to the workers; rights and obligations of parties when working abroad;
b) be advised and assisted to execute rights, obligations and receive benefits under employment contracts and vocational training contracts;
c) benefit from salary, wages, medical examination and treatment policies, social insurance, occupational accident insurance, other policies according to employment contracts; inward transfer of salary, wages, income and other legal assets of individuals according to regulations and law of Vietnam and host countries;
d) be protected in terms of legal rights and benefits during period of working abroad under contracts conforming to regulations and law of Vietnam and host countries and international practices;
dd) unilaterally terminate employment contracts if workers are bused, exploited by employers, facing life-threatening risks or sexual harassment during period of working abroad;
e) benefits from policies assisting labor, occupation and rights from Fund for overseas employment as per the law;
g) not pay social insurance or person income tax twice in Vietnam and host countries if Vietnam and the host countries have entered into agreements on social insurance or double taxation agreements;
h) complain, accuse and file lawsuits against violations to regulations and law in bringing Vietnamese workers abroad;
i) be advised, assisted in terms of employment and start-up after repatriating and access voluntary social psychological consulting service.
Thus, the Vietnamese guest workers will not pay social insurance or person income tax twice in Vietnam and host countries if Vietnam and the host countries have entered into agreements on social insurance or double taxation agreements.
What are the methods of payment by employees covered by compulsory social insurance in Vietnam?
Point b, Clause 2, Article 85 of the Law on Social Insurance 2014 stipulates the levels and methods of payment by employees covered by compulsory social insurance as follows:
Levels and methods of payment by employees covered by compulsory social insurance
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2. For employees defined at Point g, Clause 1, Article 2 of this Law, the levels and methods of payment are specified as follows:
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b/ Payment shall be made once every 3 months, every 6 months or every 12 months or in a lump sum within the time limit stated in the contracts on sending of employees to work abroad. Employees may make payment directly to social insurance agencies of localities where they reside before going abroad or via enterprises or non-business organizations that have sent them to work abroad.
In case the payment is made via enterprises or non-business organizations that have sent employees to work abroad, these enterprises or organizations shall collect and pay social insurance premiums for employees and register the method of payment with social insurance agencies.
Employees who have their contracts extended or sign new contracts in the host countries shall pay social insurance premiums according to the method specified in this Article or shall retrospectively pay social insurance premiums to social insurance agencies after they repatriate.
Thus, employees may make payment directly to social insurance agencies of localities where they reside before going abroad or via enterprises or non-business organizations that have sent them to work abroad. In case the payment is made via enterprises or non-business organizations that have sent employees to work abroad, these enterprises or organizations shall collect and pay social insurance premiums for employees and register the method of payment with social insurance agencies.
Therefore, employees may make payment directly to social insurance agencies of localities where they reside before going abroad or via enterprises or non-business organizations that have sent them to work abroad.
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