According to current regulations, compulsory social insurance (compulsory social insurance) is a type of social insurance organized by the State that employees and employers must participate in. So, in what cases do employees (Vietnamese citizens and foreign citizens working in Vietnam) not have to pay compulsory social insurance?
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Employees are not required to pay compulsory social insurance in these cases (Illustration)
Pursuant to the regulations in Decree 143/2018/ND-CP and 2014 Law on Social Insurance, employees are not required to pay compulsory social insurance in the following cases:
1. For employees who are Vietnamese citizens
Pursuant to Clause 1 Article 2 of the 2014 Law on Social Insurance, employees who are Vietnamese citizens and do not fall under the following categories are not required to pay compulsory social insurance:
- People working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts, or specific job contracts with a term from 03 months to under 12 months, including labor contracts signed between employers and legally authorized representatives for those under 15 years of age per labor regulations;
- People working under labor contracts with a term from 01 month to under 03 months;
- Officials and public employees;
- National defense workers, police officers, and those working in other positions in cryptographic organizations;
- Officers, professional soldiers of the People's Army; officers, non-commissioned officers in professional and technical duties of the People's Police; those working in cryptographic work with military pay;
- Non-commissioned officers, soldiers of the People's Army; non-commissioned officers, soldiers of the People's Police serving with fixed terms; military, police, cryptographic students who are entitled to living expenses;
- People working overseas under contracts regulated by the Law on Vietnamese guest workers;
- Business managers, executive managers of cooperatives with salaries;
- Non-specialized officials in communes, wards, and commune-level towns.
2. For foreign employees working in Vietnam
According to Clause 1 Article 2 of Decree 143/2018/ND-CP, "Foreign employees working in Vietnam are subject to compulsory social insurance participation when they have a work permit, practicing certificate, or practicing license issued by Vietnamese competent authorities and have indefinite-term labor contracts or definite-term labor contracts of 01 year or more with Vietnamese employers."
However, foreign employees working in Vietnam as described above are not subject to compulsory social insurance under the regulations in Decree 143 if they fall into any of the following cases:
- Employees not subject to compulsory social insurance participation;- Employees internally transferred within an enterprise pursuant to Clause 1 Article 3 of Decree 11/2016/ND-CP dated February 3, 2016, of the Government of Vietnam stipulating the detailed implementation of several articles of the Labor Code regarding foreign employees working in Vietnam;- Employees who have reached retirement age in accordance with Clause 1 Article 187 of the Labor Code.
Thus, if falling into the three abovementioned cases, foreign employees working in Vietnam are not required to pay compulsory social insurance.
Particularly, employees who don't work and don't receive a salary for 14 or more working days in a month are exempt from paying compulsory social insurance for that month. This period is not counted for social insurance benefits, except in cases of maternity leave (applicable to both Vietnamese citizens and foreign employees working in Vietnam).
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