HCMC Social Insurance: Instructions on collecting social insurance and health insurance premiums

Instructions on collecting social insurance and health insurance premiums in Vietnam (Internet image)

The Ho Chi Minh City Social Insurance guides a number of professions in collecting social insurance (social insurance), health insurance (HI), unemployment insurance (UI), occupational accident and occupational disease insurance (insurance of occupational accident and disease), and issuing social insurance books, health insurance cards, and some notes when implementing Decision 490/QD-BHXH.

Decentralization of management of collection of social insurance and health insurance premiums in Vietnam

- Newly established units register to participate in social insurance, health insurance, unemployment insurance, and occupational accident insurance for the first time at the district social insurance agency (collectively referred to as district social insurance), where the unit registered its business.

- The branch of the enterprise operating in any area shall pay social insurance premiums in that area or at the parent company.

- When the unit changes its business registration address to another area (district/province/city): within 3 months from the date of registration of the change of business office, it must notify the social insurance agency of the district where it is participating in order to relocate according to regulations; in case the unit does not notify the relocation, the social insurance agency of the district where the unit is participating will suspend the collection of social insurance and coordinate with the social insurance of the district where the unit has its address of residence to pay according to the new business registration license to set up procedures for relocation.

Instruction on social insurance and health insurance premium payment in Vietnam 

Every month, no later than the last day of the month, the unit shall deduct the payment of social insurance, occupational accident and occupational disease insurance, health insurance, and unemployment insurance premium from the monthly salary fund of the participating employees and at the same time deduct it from the monthly salary for payment of social insurance, occupational accident and occupational disease insurance, health insurance, and unemployment insurance premium of each employee according to the prescribed rate, transferred at the same time to the collection account of the social insurance agency opened at the bank or the State Treasury.

Units being enterprises, cooperatives, individual business households, and cooperative groups operating in the fields of agriculture, forestry, fishery, and salt production, paying wages by product or by contract, register for the monthly payment method, every 3 months or 6 months: no later than the last day of the payment method, the unit must transfer enough money to the social insurance fund.

Note: When making a payment order, the payment receipt must contain all three criteria, including the name of the unit, the unit code participating in social insurance, and the payment content.

Based-salary social insurance premiums regulated by the State

(1) An employee who is subject to the salary regime prescribed by the State shall: pay the monthly salary for payment of compulsory social insurance according to the rank, grade, military rank and position allowances, seniority allowances beyond the bracket, and seniority allowances (if any).

This salary is calculated based on the base salary.

The monthly salary for payment of compulsory social insurance prescribed in this Section (1) includes the reserve difference coefficient according to the provisions of the law on salary.

(2) For part-time workers in communes, wards, or townships, the monthly salary on which social insurance premiums are based is the base salary.

Based-salary social insurance premiums decided by the enterprise

(1) Salary as the basis for paying social insurance premiums for employees, including:

- Salary stated in the labor contract.

- Salary allowance: position allowance, title allowance; responsibility allowance; heavy, toxic, and dangerous allowances; seniority allowances; regional allowances; mobile allowance; attraction allowance; and allowances of a similar nature.

- Additional amounts that can be determined with a specific salary along with the salary agreed in the labor contract and paid regularly in each salary payment period will be implemented from January 1, 2018.

(2) The monthly salary on which the compulsory social insurance premium is based does not include:

Initiative Bonus; Mid-shift meal; allowances for petrol, phone, travel, housing, child care, and child rearing; support when the employee has the death of a relative, the employee has a married relative, the employee's birthday, allowances for employees in difficult circumstances when suffering from occupational accidents, occupational diseases; and other support and allowances specified in a separate item in the labor contract.

(3) The monthly salary as the basis of payment for the manager of an enterprise whose salary is the salary decided by the enterprise; for cooperative managers whose salary is decided by the general meeting of members, except for full-time managers in single-member limited liability companies owned by the state.

(4) The monthly salary on which compulsory social insurance, health insurance, and unemployment insurance premiums are based is not lower than the regional minimum wage at the time of payment for employees who do the simplest jobs or titles under normal working conditions.

- Minimum wage is the lowest salary paid to employees who do the simplest jobs under normal working conditions.
in order to ensure the minimum standard of living of workers and their families, in accordance with the conditions of socio-economic development.

- Employers operating in an area within a region shall apply the prescribed minimum wage rate for that area; If the unit or branch operates in different areas with different minimum wages, the minimum wage rate prescribed for that area shall apply. Units operating in industrial parks or export processing zones located in different areas with different minimum wages shall apply according to the areas with the highest minimum wage.

- For employees who are receiving salary in other forms of payment (weekly, daily, product-based, package salary),
The salary currently being paid under these forms of payment, converted by month or hourly, must not be lower than the monthly minimum wage or the minimum hourly wage prescribed by the Government.

- Reviewing the agreements in the labor contract, the collective labor agreement, and the employer's regulations and regulations to adjust and supplement accordingly; not removing or reducing wage regimes when employees work overtime, overtime at night, compensation in kind, or other regimes in accordance with the labor law.

-  For the contents agreed, committed in the labor contract, labor agreement, or other legal agreements more beneficial to employees than those specified in Decree 38/2022/ND-CP, they will continue to be implemented; If it states that there is a salary regime for employees doing jobs or titles who have undergone vocational training, at least 7% higher than the minimum salary, then continue to do so unless otherwise agreed by the two parties as prescribed by law.

(5) If the monthly salary for payment of social insurance, health insurance, and occupational accident insurance premiums is higher than 20 months' basic salary, then the monthly salary for which social insurance, health insurance, and occupational accident insurance premiums are paid is equal to 20 months' basic salary.

In case the employee's monthly salary is higher than 20 months' regional minimum salary, the monthly salary on which unemployment insurance premiums are based is equal to 20 months' regional minimum salary.

Duong Chau Thanh

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