From January 01, 2018, what are cases exempt from social insurance premium payment in Vietnam?

Duy Thịnh

19:23, 10/07/2024

As everyone is aware, effective from January 1, 2018, the Law on Social Insurance 2014 stipulates the inclusion of 2 additional mandatory subjects required to pay social insurance premium. Therefore, there will also be changes to cases exempt from social insurance premium payment in Vietnam.

Point b Clause 1 and Clause 2 Article 2 Law on Social Insurance 2014 officially takes effect from January 1, 2018, stipulating 2 additional subjects required to contribute to social insurance, namely individuals working under labor contracts with a duration of 1 month to less than 3 months and foreign employees who are legally permitted to work in Vietnam.

Thus, this raises the total number of compulsory social insurance contributors to 10 categories, as outlined in Clause 1 and Clause 2 Article 2 of the Law on Social Insurance 2014.

Article 2. Subjects of application.

1. Employees who are Vietnamese citizens and are required to participate in compulsory social insurance include:

a) Individuals working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts, or specific job contracts with a term of 3 months to less than 12 months, including labor contracts signed between employers and legal representatives of individuals under 15 years old as per labor law regulations;

b) Individuals working under labor contracts with a term of 1 month to less than 3 months;

c) Officials and public employees;

d) National defense workers, public security workers, others working in cipher organizations;

dd) Army officers, professional soldiers in the People's Army; officers, non-commissioned officers, professional technical officers, and non-commissioned officers specialized in the People's Public Security; individuals working in cipher organizations receiving salaries equivalent to military personnel;

e) Non-commissioned officers, soldiers in the People's Army; non-commissioned officers, soldiers in the People's Public Security serving a fixed term; military, public security, and cipher students receiving living allowances;

g) Individuals working overseas under contracts as stipulated by the Law on Vietnamese Guest Workers;

h) Business managers, executive managers of cooperatives receiving salaries;

i) Part-time officials in communes, wards, commune-level town.

2. Employees who are foreign citizens working in Vietnam with work permits or practicing certificates or practicing licenses issued by competent Vietnamese authorities must participate in compulsory social insurance as stipulated by the Government of Vietnam.

Meanwhile, Clause 3 Article 85 Law on Social Insurance 2014 stipulates that employees who do not work and do not receive a salary for 14 days or more in a month are exempt from contributing to social insurance for that month.

Article 85. Contribution rates and payment methods for employees participating in compulsory social insurance

3. Employees who do not work and do not receive a salary for 14 working days or more in a month will not be required to contribute to social insurance for that month. This period will not be counted for social insurance benefits, except for cases of leave for maternity benefit policies.

Thus, from January 1, 2018, there are 2 cases where employees are exempt from contributing to social insurance in Vietnam:

- Not falling under one of the compulsory social insurance contribution categories specified in Clause 1 and Clause 2 Article 2 of the Law on Social Insurance 2014, or;- Falling under the category of not working and not receiving a salary for 14 days or more in a month as stipulated in Clause 3 Article 85 of the Law on Social Insurance 2014.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

0 lượt xem

- This translation is generated by OpenAI's GPT-4o model;
- The legal regulations in this article are according to Vietnamese Law;
- This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts;
- Articles may be compiled from a variety of sources;
- Applicable Terms may have expired at the time you are reading;
- If you have any questions about the copyright of the article, please contact us via email banquyen@lawnet.vn