From July 1, 2024, when will employees participating in compulsory social insurance in Vietnam temporarily stop contributing to the retirement and survivorship fund?
From July 1, 2024, when will employees participating in compulsory social insurance in Vietnam temporarily stop contributing to the retirement and survivorship fund?
Pursuant to Article 37 of the Law on Social Insurance 2024 regulating the temporary suspension of contributions to compulsory social insurance:
Article 37. Temporary suspension of contributions to compulsory social insurance
- Temporary suspension of contributions to the retirement and survivorship fund is provided as follows:
a) In cases where the employer faces difficulties leading to the temporary suspension of production or business, resulting in the inability of both the employee and the employer to contribute to social insurance, they are allowed to temporarily stop contributions to the retirement and survivorship fund for a maximum period of 12 months;
b) After the suspension period stipulated at point a of this clause, the employer and the employee must continue to contribute to compulsory social insurance and compensate for the period of suspended contributions.
The deadline for compensatory contributions is no later than the last day of the month following the month in which the suspension of contributions ended. The amount of compensatory contributions shall equal the amount required during the months of suspension.
- For employees participating in compulsory social insurance who are temporarily detained or suspended from work, both the employee and the employer shall temporarily stop contributing to compulsory social insurance; in cases where the employee is entitled to claim back full salary, both parties must compensate for the suspension period with the required amount for the months of suspension.
- The Government of Vietnam shall provide specific regulations for this Article and other cases of temporary suspension of compulsory social insurance contributions.
Thus, employees participating in compulsory social insurance can temporarily stop contributing to the retirement and survivorship fund when the employer encounters difficulties necessitating a temporary suspension of production or business, leading to the inability of both parties to make contributions. This suspension can last for a maximum of 12 months.
From July 1, 2024, when will employees participating in compulsory social insurance in Vietnam temporarily stop contributing to the retirement and survivorship fund? (Image from Internet)
What is the contribution rate of compulsory social insurance to the retirement and survivorship fund in Vietnam?
Pursuant to Article 32 of the Law on Social Insurance 2024 regulating the contribution rates for social insurance:
Article 32. Social insurance contribution rates
- The contribution rate of compulsory social insurance includes:
a) 3% of the salary, which is the basis for social insurance contributions, into the sickness and maternity fund;
b) 22% of the salary, which is the basis for social insurance contributions, into the retirement and survivorship fund.
- The voluntary social insurance contribution rate is 22% of the income, which is the basis for social insurance contributions, into the retirement and survivorship fund.
According to the above regulation, the contribution rate of compulsory social insurance to the retirement and survivorship fund is 22% of the salary, which is the basis for social insurance contributions.
Which entity in Vietnam is responsible for periodically, every 5 years, assessing and forecasting the balance capability of the retirement and survivorship fund in Vietnam?
Pursuant to Article 18 of the Law on Social Insurance 2024 regulating the responsibilities of the social insurance agency:
Article 18. Responsibilities of the social insurance agency
[...]
13. Periodically, every 5 years, assess and forecast the balance capability of the retirement and survivorship fund.
- Provide documents and information related to the implementation of policies and laws on social insurance, unemployment insurance, and health insurance at the request of competent state agencies.
- Resolve complaints and denunciations regarding the implementation of social insurance, unemployment insurance, and health insurance in accordance with this Law and other related laws.
- Engage in international cooperation on social insurance, unemployment insurance, and health insurance.
- Identify and monitor employees and employers who are participants in social insurance under the provisions of Article 30 of this Law.
- Lead the development, management, updating, maintenance of the national insurance database, and exploit, use, share data within the national insurance database as prescribed by law.
According to the above regulation, the social insurance agency is responsible for periodically, every 5 years, assessing and forecasting the balance capability of the retirement and survivorship fund.
