In 2020, what is the mandatory social insurance contribution rate for employees in Vietnam? What are methods for making social insurance contributions? This is a question from Ms. Nguyen Ngoc Anh in Ho Chi Minh City.
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INCOMES FOR MANDATORY AND NON-MANDATORY SOCIAL INSURANCE IN 2020 IN VIETNAM
Regarding Ms. Anh's issue, the Lawnet would like to answer as follows:
According to the provisions of Decision 595/QD-BHXH, there are currently 03 types of insurance that enterprises must pay for employees, including: Social Insurance (retirement, sickness, maternity), Health Insurance, and Unemployment Insurance.
The specific contribution rates for these types of insurance are as follows:
1. For Vietnamese employees
| Employer | Employee | ||||||||||
| Social Insurance | Occupational accidents and diseases | Unemployment Insurance | Health Insurance | Social Insurance | Occupational accidents and diseases | Unemployment Insurance | Health Insurance | ||||
| Retirement, death benefits | Sickness, maternity | Retirement, death benefits | Sickness, maternity | ||||||||
| 14% | 3% | 0.5% | 1% | 3% | 8% | - | - | 1% | 1.5% | ||
| 21.5% | 10.5% | ||||||||||
| Total: 32% | |||||||||||
2. For foreign employees in Vietnam
| Employer | Employee | ||||||||||
| Social Insurance | Occupational accidents and diseases | Unemployment Insurance | Health Insurance | Social Insurance | Occupational accidents and diseases | Unemployment Insurance | Health Insurance | ||||
| Retirement, death benefits | Sickness, maternity | Retirement, death benefits | Sickness, maternity | ||||||||
| - | 3% | 0.5% | - | 3% | - | - | - | - | 1.5% | ||
| 6.5% | 1.5% | ||||||||||
| Total: 8% | |||||||||||
Thus, monthly, the employer must pay and deduct from the employees' wages to pay the insurance contributions for Vietnamese employees at a total rate of 32% of the wage calculated for Social Insurance and 8% of the wage calculated for Social Insurance for foreign employees.
Mandatory social insurance contributions for employees can be made through the following methods:
- Monthly contributions
Monthly, no later than the last day of the month, the unit must deduct mandatory Social Insurance contributions from the monthly wage fund of employees participating in mandatory Social Insurance and concurrently deduct from the monthly wage to pay mandatory Social Insurance for each employee according to the stipulated rate, transferring it all at once into the specialized collection account of the Social Insurance agency at the bank or State Treasury.
- Contributing every 3 or 6 months
Units such as enterprises, cooperatives, individual business households, partnerships operating in agriculture, forestry, aquaculture, salt production, and paying wages based on products or contracts can contribute monthly or every 3 or 6 months. No later than the last day of the contribution method, the unit must transfer the full amount into the Social Insurance fund.
- Contributing based on the location
+ Units with headquarters in any province must register to participate in Social Insurance contributions at that province’s location according to the province’s Social Insurance agency’s division.
+ Branches of enterprises operating in any location must contribute Social Insurance at that location or at the parent company.
- For employees specified at Points 1.7.a, 1.7.c and 1.7.d, Clause 1, Article 4 of Decision 595, the contribution method is every 3 months, 6 months, annually, or contributing one time in advance according to the term specified in the contract sending employees to work overseas. Employees contribute directly to the Social Insurance agency before going to work overseas or through the agency or organization sending employees abroad.
+ In case of contribution through the agency, organization sending employees to work overseas, the agency, organization collects and pays Social Insurance for employees and registers the contribution method with the Social Insurance agency.
+ In case employees' contracts are extended or a new labor contract is signed immediately in the receiving country, they must contribute to Social Insurance following the method stipulated in this Article or make up for the contributions to the Social Insurance agency after returning home.
- For employees specified at Point 1.8, Clause 1, Article 4 of Decision 595, contributions are made monthly, every 3 months or 6 months through the managing unit officials who have spouses to contribute to the retirement and death benefits fund.
- For contributions for missing periods not exceeding 6 months specified at Point 1.6, Clause 1, Article 5 of Decision 595:
+ Employees contribute one time for the missing months through the unit before leaving the job.
+ Persons with preserved mandatory Social Insurance contribution periods or relatives of deceased employees contribute one time for the missing months at the Social Insurance agency in the district where they reside.
Legal basis:
- Decision 595/QD-BHXH issuing procedures for collecting Social Insurance, Health Insurance, Unemployment Insurance, Occupational Accident and Disease Insurance; managing Social Insurance books, Health Insurance cards;
- Decision 888/QD-BHXH amending and supplementing some provisions of the procedures for collecting Social Insurance, Health Insurance, Unemployment Insurance, Occupational Accident and Disease Insurance; managing Social Insurance books, Health Insurance cards issued with Decision 595/QD-BHXH.
Nguyen Trinh
- Key word:
- social insurance
- Vietnam
- employee
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