Do you have to pay compulsory social insurance in Vietnam if you quit your job at the company?

Do you have to pay compulsory social insurance in Vietnam if you quit your job at the company?

According to the provisions of Clause 1, Article 2 of the Law on Social Insurance 2014, on workers who are Vietnamese citizens subject to compulsory social insurance as follows:

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.

In addition, Clause 2, Article 2 of the Law on Social Insurance 2014 also stipulates:

2. 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.

Thus, employees who have left the company are not subject to compulsory social insurance in Vietnam.

What are the benefits of compulsory social insurance contributions in Vietnam?

Pursuant to Clause 1, Article 4 of the Law on Social Insurance 2014, the regulations on compulsory social insurance are as follows:

1. Compulsory social insurance covers the following regimes:

a/ Sickness;

b/ Maternity;

c/ Labor accident and occupational disease;

d/ Retirement;

dd/ Survivorship allowance.

Thus, when laborers pay compulsory social insurance premiums, they will be entitled to social insurance benefits on the basis of social insurance premiums in Vietnam. For your above case, you have applied for a leave of absence from the company and are supposed to trade, so you are not subject to compulsory social insurance contributions. Thus, you cannot enjoy the benefits of compulsory social insurance. Instead, you can pay voluntary social insurance premiums to enjoy retirement and survivor benefits.

Best regards!