Subjects of compulsory social insurance in Vietnam

Subjects of compulsory social insurance in Vietnam (Internet image)

What is social insurance?

Social insurance means the guarantee to fully or partially offset an employee’s income that is reduced or lost due to his/her sickness, maternity, labor accident, occupational disease, retirement or death, on the basis of his/her contributions to the social insurance fund.

Social insurance includes two types: compulsory social insurance and voluntary social insurance

- Compulsory social insurance means a form of social insurance organized by the State in which employees and employers are required to participate.

- Voluntary social insurance means a form of social insurance organized by the State in which a participant may select a premium rate and a method of premium payment suitable to his/her income and the State supports his/her payment of social insurance premiums for him/her to enjoy retirement and survivorship allowance regimes.

(Clause 1,2,3 of the Law on Social Insurance 2014)

Employees subject to compulsory social insurance in Vietnam

Pursuant to Article 2 of the Law on Social Insurance 2014, employees being Vietnamese citizens shall be covered by compulsory social insurance, including:

(1) 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;

(2) Persons working under labor contracts with a term of between full 1 month and under 3 months;

(3) Cadres, civil servants and public employees;

(4) Defense workers, public security workers and persons doing other jobs in cipher organizations;

(5) 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;

(6) 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;

(7) Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;

(8) Salaried managers of enterprises and cooperatives;

(9) Part-time staffs in communes, wards and townships.

(10) 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 subject to compulsory social insurance in Vietnam

 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.

Ngoc Nhi

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