Nowadays, the majority of employees with labor contracts will be required to participate in compulsory social insurance. However, if you fall into the following cases, you are not required to participate in compulsory social insurance.
Article table of contents
Cases which do not have to pay compulsory social insurance in Vietnam (Illustration)
1. Subjects which are not compusory to pay social insurance premium in Vietnam.
Pursuant to Article 2 of Vietnam's Law on Social Insurance 2014 stipulates the subjects participating in social insurance:
- Employees being Vietnamese citizens shall be covered by compulsory social insurance, including:
+ 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;
+ Persons working under labor contracts with a term of between full 1 month and under 3 months;
+ Cadres, civil servants and public employees;
+ Defense workers, public security workers and persons doing other jobs in cipher organizations;
+ 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;
+ 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;
+ Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;
+ Salaried managers of enterprises and cooperatives;
+ Part-time staffs in communes, wards and townships.
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.
- 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.
- Persons covered by voluntary social insurance are Vietnamese citizens aged full 15 years or older and not defined in Clause 1 of this Article.
- Agencies, organizations and individuals involved in social insurance.
Therefoe, in the case of not subjects to the regulations on compulsory social insurance, you will not have to pay compulsory social insurance premium.
Ex: A probationary contract of less than 1 month will not have to pay compulsory social insurance premium.
2. On leave for 14 days or more in a month in Vietnam
Pursuant to Clause 3, Article 85 of Vietnam's Law on Social Insurance 2014 stipulates that employees who do not workfor 14 working days or more in a month are not required to pay social insurance premiums in that month if they fall into the following cases
- Employees who neither work nor receive salary for 14 working days or more in a month;
- Employees who take sick leave for 14 working days or more in a month in accordance with the law on social insurance (still being able to enjoy health insurance benefits);
- Employees who take maternity leave from 14 working days or more in a month (still being able to enjoy the period of social insurance payment)
As mentioned above, employees in these cases shall be temporarily not required to pay compulsory social insurance.
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