Expanding the list of subjects participating in mandatory social insurance in Vietnam (proposed)

Dear Madam, Lawnet would like to provide the following explanation:

The Government of Vietnam is currently seeking public opinion on the Draft Law on Social Insurance (Amended):

1. Expanding the list of subjects participating in compulsory social insurance in Vietnam

In the Draft Law on Social Insurance (Amended), 12 subjects participating in compulsory social insurance are listed, including:

- Employees with indefinite-term labor contracts, fixed-term labor contracts of at least 01 month or more, including cases where both parties agree with another name that implies work that is paid, wages, and managed, directed, supervised by one party; (new)

- Officials and public employees;

- Employees and public employees in national defense, police employees, and other employees in cryptographic organizations;

- Officers, professional soldiers of the People's Army; officers, non-commissioned officers in professional and technical sectors of the People's Public Security, cryptographic employees receiving salaries akin to military personnel;

- Non-commissioned officers, soldiers of the People's Army; non-commissioned officers, soldiers of the People's Public Security serving for a fixed term; military, police, cryptographic students currently in training receiving allowances; permanent militias;

- People working abroad under a contract stipulated in the Law on Vietnamese employees Working Abroad under Contract;

- People receiving spouse or partner policies at Vietnamese representative offices abroad; (new)

- Enterprise managers, cooperative executives receiving salaries;

- Non-specialized activists at commune, ward, commune-level towns;

- Employees stipulated in point a of this section working part-time with a monthly salary equal to or higher than the lowest mandatory social insurance salary stipulated in point e clause 1 Article 37 of this Law;

- Household business owners; (new)

- Enterprise managers, cooperative executives not receiving salaries. (new)

Thus, compared to the current regulations, the Draft has expanded by adding 04 groups of subjects participating in compulsory social insurance. The expansion of groups participating in social insurance tends to benefit the employees. At the same time, it helps the Social Insurance Authority to increase revenue from the increasing number of employees participating in Social Insurance. Along with that, it limits the situation of signing multiple short-term labor contracts under three months to evade social insurance at enterprises.

2. Regulations on acts evading compulsory social insurance contributions in Vietnam

According to the new Draft, acts of evading compulsory social insurance contributions include:

Firstly, employers failing to register for compulsory social insurance or registering for compulsory social insurance after more than 5 working days from the date of signing the labor contract, employers submitting the dossier;

Secondly, employers registering for compulsory social insurance for employees but by the deadline, they have not paid or have not paid enough the compulsory social insurance contributions as required:

+ By the 10th day of the following month for monthly payment methods;

+ By the last day of the payment cycle for quarterly payment methods;

+ By the last day of the fourth month of the payment cycle for semi-annual payment methods;

+ By the last day of the seventh month of the payment cycle for annual payment methods.

Thirdly, employers registering and paying for compulsory social insurance at a lower salary than the mandatory social insurance salary base as stipulated.

More details can be found here

Sincerely!

Please Login to be able to download