Is it compulsory to pay interns' salaries in Vietnam? Do interns participate in social insurance in Vietnam?

Is it compulsory to pay interns' salaries in Vietnam?

The Labor Code 2019 currently has no regulations on contracts for interns.

According to Article 93 of the Education Law 2019 stipulates responsibilities of society as follows:

1. Agencies, organisations and individuals shall have the following responsibilities:

a) Assisting and cooperating with schools in organizing educational and research activities; facilitating teachers and learners in visits, experiences, practice and scientific research;

b) Contributing to the creation of a safe and healthy educational environment, while preventing activities with possible negative effects on learners;

c) Enabling citizens of suitable age to fulfill learning obligations so as to contribute to the universalization of education, completing compulsory education, with a view to guaranteeing learners healthy recreational, cultural, sporting and athletic activities;

d) Contributing resources for the cause of educational development according to their capacities.

2. The Vietnam Fatherland Front Committee and its member organisations shall be responsible for mobilizing the population to take care of the cause of education.

3. The Ho Chi Minh Communist Youth Union and the Ho Chi Minh Young Pioneer Organisation shall be responsible for cooperating with schools in educating the youth and children; mobilizing the youth and children to set examples in learning, training and participating in the development of the cause of education.

In addition, in Clause 7, Article 1 of the 2018 Law on Higher Education, it stipulates:

6. Ensure relation between training and demand for labor; research into application of science and technology; enhance cooperate between higher education institutions, enterprises and science and technology organizations; provide tax incentives for science and technology products of higher education institutions; encourage organizations and enterprises to facilitate students and lecturers to improve practical skills, participate in internship, scientific research and technology transfers in order to improve training quality.

Thus, according to regulations in Vietnam, internship is a form of learning prescribed by the Law on Education and the Law on Higher Education, so it is not compulsory for agencies, organizations and individuals to sign labor contracts with interns. Therefore, the payment of the intern's salary is not mandatory but depends on the agreement of the intern and the internship place.

Do interns participate in social insurance in Vietnam?

Pursuant to Article 2 of the Law on Social Insurance 2014 stipulates subjects of applicationas 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.

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.

3. Employers covered by compulsory social insurance include state agencies, non-business units and people's armed forces units; political organizations, socio-political organizations, socio-politico-professional organizations, socio-professional organizations and other social organizations; foreign agencies and organizations, and international organizations operating in the Vietnamese territory; enterprises, cooperatives, individual business households, cooperative groups, and other organizations and individuals that hire or employ employees under labor contracts.

4. Persons covered by voluntary social insurance are Vietnamese citizens aged full 15 years or older and not defined in Clause 1 of this Article.

5. Agencies, organizations and individuals involved in social insurance.

The subjects defined in Clauses 1, 2 and 4 of this Article are below collectively referred to as employees.

In the above regulations in Vietnam, it is not mentioned that interns are subject to compulsory social insurance, so they are not required to participate in social insurance.

Best Regards!