Do employees over 60 years old who are still working at an enterprise have to pay social insurance in Vietnam?

Do employees over 60 years old who are still working at an enterprise have to pay social insurance in Vietnam?

Pursuant to Clause 2, Article 2 of the 2014 Law on Social Insurance, regulations on 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.

In addition, Article 2 of Decree 143/2018/ND-CP stipulates the subjects of application as follows:

1. Employees who are foreign nationals working in Vietnam shall be required to participate in the compulsory SI program if they obtain work permits, practicing certificates, practicing licenses issued in Vietnam, indefinite-term employment contracts or employment contracts valid for at least one year with employers in Vietnam.

2. Employees referred to in clause 1 of this Article shall be excluded from participation in the compulsory social insurance as provided herein if:

a) they are intra-company transferees as stipulated in clause 1 Article 3 of the Government’s Decree No. 11/2016/ND-CP dated February 3, 2016, providing details of the implementation of certain articles of the Labor Code regarding foreign employees working in Vietnam.

b) they reach retirement age under clause 1 Article 187 of the Labor Code.

3. Employers participating in the compulsory social insurance, including state agencies, public service provider units, political entities, socio-political bodies, socio-political and occupational, socio-occupational and other social organizations; foreign or international bodies or organizations operating within the territory of Vietnam; enterprises, cooperatives, single-person households, cooperative associations, other organizations, and persons who are licensed to do business as per laws, shall be required to participate in the compulsory social insurance if they hire and employ personnel to work under employment contracts.

4. Entities and persons related to the compulsory social insurance for employees who are foreign nationals shall be required to participate in this compulsory SI program.

In addition, Article 187 of the Labor Code, now Article 169 of the 2019 Labor Code, stipulates the retirement age as follows:

1. An employee who has paid social insurance for an adequate period of time as prescribed by social insurance laws shall receive retirement pension when he/she reaches the retirement age.

2. Retirement ages of employees in normal working conditions shall be gradually increased to 62 for males by 2028 and 60 for females in 2035.

From 2021, the retirement ages of employees in normal working conditions shall be 60 yeas 03 months for males and 55 years 04 months for females, and shall increase by 03 months for males and 04 months for females after every year.

3. The retirement ages of employees who suffer from work capacity reduction; doing laborious, toxic or dangerous works; working in highly disadvantaged areas may be younger by up to 05 years than the retirement ages specified in Clause 2 of this Article, unless otherwise prescribed by law.

4. Retirement ages of skilled employees and employees in certain special cases may be older by up to 05 years than the retirement ages specified in Clause 2 of this Article, unless otherwise prescribed by law.

5. The Government shall elaborate this Article.

Thus , according to current regulations, employees over 60 years old are considered to be employees who have reached retirement age, Article 169 of the 2019 Labor Code. Therefore, this employee is in the case of not being able to pay social insurance in Vietnam. 

How many fixed-term labor contracts can be signed with elderly employees in Vietnam?

In addition, Article 149 of the 2019 Labor Code stipulates employment of elderly people as follows:

1. When an elderly person is employed, both parties may agree on conclusion of multiple fixed-term employment contracts.

2. In case a person who is receiving retirement pension under the Law on Social Insurance enters into a new employment contract, he/she shall receive salary and other benefits prescribed by law and the employment contract in addition to the benefits to which they are entitled under the pension scheme.

3. Employer must not assign elderly employees to do laborious, toxic or dangerous works, or highly laborious, toxic or dangerous works that are harmful to their health, unless safety is ensured.

4. Employers are responsible for taking care of the health of elderly employees at the workplace.

According to this Article, for elderly employees, the employer can sign many contracts (the maximum number of contracts is not specified here). Therefore, you will not be limited in the number of times you work for elderly workers. However, the labor contract you sign with the foreign worker must be consistent with the work permit in Vietnam.

Best regards!