Vietnam: Are persons who work as freelancers subject to social insurance contributions?

LawNet respectfully greets Mr. Hien!

Regarding this matter, LawNet has some exchanges as follows:

Law on Social Insurance 2014 of Vietnam stipulates three types of social insurance, which are:

1. Mandatory Social Insurance: This is the type of SI that both employees and employers must participate in, including the following policies: sickness, maternity, occupational accidents, occupational diseases, pension, and survivor benefits.
2. Voluntary Social Insurance: This is the type of SI that employees voluntarily participate in, choosing the level and method of contribution suitable for their income to enjoy SI benefits, including the following policies: pension and survivor benefits.
3. Unemployment Insurance: Mandatory for Vietnamese workers working under labor contracts or work contracts that have indefinite terms or terms from 12 months to 36 months with employers who employ ten or more workers, including the following policies: unemployment benefits; vocational training support; job search support.

Your case falls under Voluntary Social Insurance. This type of SI is voluntary and therefore not mandatory to participate in. If you do not participate, you are not violating the law. However, participating in SI will bring certain benefits to participants in terms of pension and survivor benefits.

Decree 134/2015/ND-CP of Vietnam's Government has some regulations on Voluntary Social Insurance as follows:

- Participants in voluntary SI must be Vietnamese citizens aged 15 years or older and not under the scope of mandatory social insurance as stipulated by the law on social insurance.

- The monthly contribution rate is 22% of the monthly income chosen by the voluntary SI participant.

The lowest monthly income chosen by voluntary SI participants must equal the poverty line in rural areas as specified by the Prime Minister of the Government of Vietnam, and the highest income must be 20 times the statutory pay rate at the time of contribution.

- The voluntary SI contribution method is either quarterly (every 3 months), semi-annually (every 6 months), or annually (every 12 months).

- Voluntary SI participants can visit voluntary SI collection agencies at district post offices or district social insurance offices to submit their registration documents.

The documents include: (1) Voluntary SI participation declaration form, (2) Copy of birth certificate, and (3) Copy of identity card.

Best regards!

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE