Vietnam: Is it required to pay unemployment insurance premiums upon sickness or maternity leave? If yes, what is the salary rate used for dertermining social insurance premiums?
What are regulations on unemployment insurance participation in Vietnam?
Pursuant to Article 11 of Decree No. 28/2015/ND-CP on the unemployment insurance participation in Vietnam as follows:
- Application for unemployment insurance shall be application for compulsory social insurance, including the specific content of unemployment insurance participation.
- Employers shall make and submit application for unemployment insurance of employees to social insurance organizations within 30 days from the date labor contract or employment contract of the employees take effect.
If employees have concluded a labor contract under seasonal work or under a certain job from 03 full months to less than 12 full months before January 01, 2015 and 01 are carrying out such labor contract, employers must pay unemployment insurance for such employees in case the contract term is in at least 03 months.
If employees conclude many labor contracts as defined in Paragraph 1, Article 43 of the Law on Employment and are participating in unemployment insurance under the first effective concluded labor contract, upon termination or change of contract workers resulting ineligibility for unemployment insurance of the employees, the employees and the employers under unemployment insurance participation of the next effective concluded labor contracts shall be responsible for participation in unemployment insurance as prescribed by law.
If employees take the unpaid maternity leave or sick leave for 14 working days or more, receiving social insurance allowance, employees postpone labor contract or working contract concluded in accordance with the law; such employees are not eligible for unemployment insurance during this period.
What are the regulations on managing persons covered by the social insurance in Vietnam?
- An employee who takes leave due to sickness for at least 14 working days in a month in accordance with regulations of law on social insurance is not required to pay insurance contributions and premiums but still receives benefits from health insurance.
- If an employee who takes leave due to maternity for at least 14 working days in a month, both he/she and his/her employer are not required to pay social insurance contributions and premiums of unemployment insurance, occupational accident and occupational disease; this period will be included in the payment period of social insurance contributions and his/her health insurance premiums will be paid by the social insurance authority.
The maternity leave period shall be specified in his/her social insurance book according to the monthly salary as the basis for paying social insurance of the month preceding the leave month. In the leave period, if his/her salary is increased, the new salary shall be applied from the time of increase in his/her salary.
If an employee who is doing a heavy, toxic or dangerous job or an extremely heavy, toxic or dangerous job included in the list issued by the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Health or is working in areas with a region-based allowance coefficient of 0.7 or higher leaves his/her jobs due to maternity, the leave period shall be included in the period of doing a heavy, toxic or dangerous job or an extremely heavy, toxic or dangerous job or working in areas a region-based allowance coefficient of 0.7 or higher.
+ If a labor contract expires while an employee takes leave due to maternity, the maternity leave period from the time where he/she leaves the job to the time where his/her labor contract expires shall be included in the payment period of social insurance contributions and the leave period after her labor contract expires shall not included in the payment period of social insurance contributions.
+ The maternity leave period of an employee who terminates his/her labor contract or employment contract or quits her job before giving birth or adopting a child who is under 6 months shall not be included in the payment period of social insurance contributions.
+ If a female employee returns work before the prescribed leave period of childbirth expires, the maternity leave period from the time of leaving to the time of returning shall be included in the payment period of social insurance contributions; she and her employer shall pay insurance contributions and premiums from the time of returning onwards.
+ If the father or the direct fosterer, intended mother, intended father or the direct fosterer who is entitled to maternity benefits do not take leave, he/she and his/her employer will still pay insurance contributions and premiums.
Is it required to pay unemployment insurance premiums in Vietnam upon sickness or maternity leave?
Based on Clause 2, Article 11 of Decree No. 28/2015/ND-CP and Clauses 5 and 6, Article 42 of Procedures for collection of social insurance contributions and premiums of health insurance, unemployment insurance, occupational accident and occupational disease insurance and issuance of social insurance books and health insurance cards issued together with Decision 595/QD-BHXH 2017, during the period of sickness maternity leave, the unit and employees will not pay unemployment insurance premiums, this period is counted as the time of payment of social insurance premiums and the social insurance agency shall pay health insurance premiums for employees.
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