What are the compulsory social insurance premium payment levels in 2024? What are the compulsory social insurance benefits in Vietnam?
What are the compulsory social insurance premium payment levels 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 guarantee to replace or compensate for 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. This is done through 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 premium payment levels in 2024 are as follows:
- For employers:
+ Social insurance contribution rates: The social insurance contribution rate for employers is 17%, with 3% going to the sickness and maternity fund, and 14% going to the retirement and survivorship fund.
+ Unemployment insurance fund: 1%
+ Health insurance fund: 3%
+ Occupational accident and occupational disease insurance fund: 0.5%
- For Vietnamese employees:
+ Compulsory social insurance: 8%
+ Health insurance: 1.5%
+ Unemployment insurance: 1%
Thus, the compulsory social insurance contribution rates for 2024 are as follows:
+ The contribution rates for employers in 2023 are 21.5%.
+ The contribution rates for employees are 10.5%.
*Note:
- The above contribution rates apply to Vietnamese citizens.
- Pursuant to Resolution 104/2023/QH15, effective from July 1, 2024, the salary reform policy based on Resolution 27-NQ/TW in 2018 will be implemented. Specifically, the statutory pay rate will be officially abolished from this point onwards. Therefore, there may be changes in the social insurance contribution rates in the near future.
What are the compulsory social insurance premium payment levels in 2024? What are the compulsory social insurance benefits in Vietnam? (Picture from internet)
What are the compulsory social insurance benefits in Vietnam?
Pursuant to the provisions of Clause 2, Article 4 of the Law on Social Insurance 2014 as follows:
Social insurance benefits
1. Compulsory social insurance covers the following benefits:
a/ Sickness;
b/ Maternity;
c/ Occupational accident and occupational disease;
d/ Retirement;
dd/ Survivorship allowance.
2. Voluntary social insurance covers the following benefits:
a/ Retirement;
b/ Survivorship allowance.
3. The supplementary retirement scheme shall be stipulated by the Government.
Thus, according to the above regulations, compulsory social insurance covers the following benefits:
- Sickness;
- Maternity;
- Occupational accident and occupational disease;
- Retirement;
- Survivorship allowance.
Who are the participants in compulsory social insurance in Vietnam?
Pursuant to the provisions of Article 2 of the Law on Social Insurance 2014, subjects participating in compulsory 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;
+ 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.
- 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.
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