From 2021: What amounts shall be paid by employers to employees who are not covered by compulsory social insurance in Vietnam?

From 2021: What amounts shall be paid by employers to employees who are not covered by compulsory social insurance in Vietnam?

04 cases where an employee is not covered by compulsory social insurance in Vietnam

Based on the Labor Code 2019 (which will officially take effect from January 1, 2021) and the Social Insurance Law 2014, 04 cases in which employees are not covered by compulsory social insurance include:

Case 1: Employees not subject to compulsory social insurance contribution

According to Clause 1 and Clause 2 Article 2 of the Social Insurance Law 2014, employees are not covered by compulsory social insurance when they do not belong to the following subjects:

- Persons working under indefinite-term labor contracts, definite-term labor contracts;

- Persons working under labor contracts with a term of 01 month to less than 03 months;

- Officials and public employees;- National defense workers, public security workers, persons doing other tasks in cryptographic organizations;

- Officers, professional soldiers of the people's army; officers, non-commissioned officers on duty, officers, non-commissioned officers specializing in technical professions in the people's public security; persons in cryptographic work entitled to salaries like military personnel;

- Non-commissioned officers and soldiers of the people's army; non-commissioned officers and soldiers of the people's public security serving for a definite term; cadets in the army, public security, cryptographic agencies who are studying and receiving living expenses;

- Persons working abroad under contracts;

- Managers of employers, managers of cooperatives enjoying salaries;

- Persons performing non-specialized activities at ward, commune, and commune-level towns;

- Foreign citizens working in Vietnam with a work permit or professional certificate or practice license issued by a competent Vietnamese authority.

Case 2: Employees during probationary periods

According to Article 24 and Article 21 of the Labor Code 2019, employers and employees can agree on the probationary content in the labor contract or agree on probation by concluding a probationary contract. However, the content of a probationary contract does not have to include social insurance and health insurance agreements.

Therefore, employees during probationary periods who do not sign labor contracts are not required to contribute to compulsory social insurance.

Case 3: Employees not working and not receiving salaries for 14 or more working days in a month

According to Clause 2 Article 39 and Clause 3 Article 85 of the Social Insurance Law 2014, employees are not covered by compulsory social insurance when:

- Employees not working and not receiving salaries for 14 or more working days in a month;- Employees on maternity leave for 14 or more working days in a month.

Case 4: Elderly employees receiving pensions or employees working as domestic helpers

According to Clause 2 Article 149 of the Labor Code 2019 and Clause 4 Article 4 of the Decision 595/QD-BHXH 2017, it is stipulated that employees working under indefinite-term labor contracts, definite-term labor contracts, and labor contracts with terms ranging from 01 month to less than 03 months who are domestic helpers and employees participating in compulsory social insurance while receiving pensions are not required to contribute to compulsory social insurance.

Amounts to be paid by employers to employees who are not covered by compulsory social insurance in Vietnam

According to Clause 3 Article 168 of the Labor Code 2019, for employees not subject to compulsory social insurance, health insurance, and unemployment insurance contributions, the employer is responsible for paying an additional amount along with the salary period equivalent to the employer's contribution rate to compulsory social insurance, health insurance, and unemployment insurance as prescribed by law on social insurance, health insurance, and unemployment insurance.

In addition, Clause 3 Article 85 of the Social Insurance Law 2014 stipulates that employees not working and not receiving salaries for 14 or more working days in a month are not required to contribute social insurance for that month. The time is not counted to enjoy social insurance, except for the case of maternity leave.

Thus, based on the above regulations, the allowances that employers must pay when employees are not covered by compulsory social insurance include:

- Payment of salaries according to the work performed by the employee in the month;

- Payment of an amount equivalent to the contribution rate for compulsory social insurance, compulsory health insurance, and unemployment insurance.

However, employees should note that employees who take unpaid leave for 14 or more days in the month will not receive an amount equivalent to the contribution rate for compulsory social insurance, compulsory health insurance, and unemployment insurance.

Ty Na

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