If employees take paid leave due to pandemic, do they have to pay social insurance in Vietnam? If I suspend working due to the Covid-19 epidemic, what is social insurance payment rate in Vietnam?
If employees take paid leave due to pandemic, do they have to pay social insurance in Vietnam? If I suspend working due to the Covid-19 epidemic, what is social insurance payment rate in Vietnam? If employees have paid for 20 years, do they no longer need to pay social insurance in Vietnam?
If employees take paid leave due to pandemic, do they have to pay social insurance in Vietnam?
Our company plans to give all employees 2-3 months of quarantine leave, during this time the company supports each month at 4,420,000 VND/month/person. In this case, can the company temporarily suspend paying Social Insurance?
Answer: Clause 3, Article 99 of the 2019 Labor Code stipulates suspension pay as follows:
3. In case the suspension is caused by an electricity or water supply issue that is not at the employer’s fault, or by a natural disaster, fire, major epidemic, hostility, relocation requested by a competent authority, or for economic reasons, both parties shall negotiate the salary as follows:
a) If the suspension does not exceed 14 working days, the salary shall not fall below the statutory minimum wages;
b) If the suspension is longer than 14 working days, the salary shall be negotiated by both parties and the salary for the first 14 days must not fall below the statutory minimum wages.
In addition, Decree 90/2019/ND-CP regulates Region-based minimum wages as follows:
1. Region-based minimum wages:
a) For enterprises located in region I: VND 4,420,000/month.
b) For enterprises located in region II: VND 3,920,000/month.
c) For enterprises located in region III: VND 3,430,000/month.
d) For enterprises located in region IV: VND 3,070,000/month.
Therefore, if businesses temporarily suspend operations due to the Covid-19 epidemic, employees will be paid according to the agreement but must ensure the above regulations in Vietnam.
In addition, Clause 8, Article 42 of Decision 595/QD-BHXH 2017 stipulates as follows:
8. If an employee who stops working in accordance with regulations of law on labor still receives salary, he/she or his/her employer shall pay insurance contributions and premiums according the monthly salary received by the employee during the stopping period.
Thus, if the company gives employees time off from work and is paid for suspension, the company still has to pay social insurance, health insurance, unemployment insurance, labor accident insurance, and occupational disease insurance. Social insurance contributions will be calculated based on the salary received during the period of work suspension.
If employees take paid leave due to pandemic, do they have to pay social insurance in Vietnam? If I suspend working due to the Covid-19 epidemic, what is social insurance payment rate in Vietnam? (Image from the Internet)
If I suspend working due to the Covid-19 epidemic, what is social insurance payment rate in Vietnam?
Let me ask, my company stopped work due to social distancing. I still receive the regional minimum wage. So how are my social insurance contributions paid?
Answer: According to Clause 3, Article 99 of the 2019 Labor Code, stipulates suspension pay as follows:
3. In case the suspension is caused by an electricity or water supply issue that is not at the employer’s fault, or by a natural disaster, fire, major epidemic, hostility, relocation requested by a competent authority, or for economic reasons, both parties shall negotiate the salary as follows:
a) If the suspension does not exceed 14 working days, the salary shall not fall below the statutory minimum wages;
b) If the suspension is longer than 14 working days, the salary shall be negotiated by both parties and the salary for the first 14 days must not fall below the statutory minimum wages.
In addition, Clause 8, Article 42 of Decision 595/QD-BHXH 2017 stipulates as follows:
8. If an employee who stops working in accordance with regulations of law on labor still receives salary, he/she or his/her employer shall pay insurance contributions and premiums according the monthly salary received by the employee during the stopping period.
Thus, if the company gives employees time off from work and is paid for stopping work, the company still has to pay social insurance, health insurance, unemployment insurance, labor accident insurance, and occupational disease insurance. Social insurance contributions will be calculated based on the salary received during the period of work suspension in Vietnam.
If employees have paid for 20 years, do they no longer need to pay social insurance in Vietnam?
The unit's male employee is 55 years old and has paid social insurance for 20 years. Now he is still working but he doesn't want to pay social insurance anymore and said I'll stop after 20 years. So can we suspend paying social insurance for him?
Answer: According to Clause 1, Article 168 of the 2019 Labor Code, regulations on participation in social insurance, health insurance and unemployment insurance, in which:
1. Employers and employees shall participate in compulsory social insurance, compulsory health insurance and unemployment insurance and enjoy the benefits in accordance with provisions of the law on social insurance, health insurance and unemployment insurance.
Employers and employees are encouraged to obtain other kinds of insurance for employees.
And in Clause 1, Article 2 of the 2014 Law on Social Insurance, employees being Vietnamese citizens shall be covered by compulsory social insurance, including:
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.
Thus, people working under labor contracts with a term of 1 month or more are subject to compulsory social insurance. Therefore, even though this employee has paid for 20 years, because the employee is not yet old enough to retire, the company and employee are still responsible for paying compulsory social insurance in Vietnam.
Best regards!
