My father is currently working at a company in Vietnam; however, he is not subject to mandatory social insurance participation. Is my father eligible to any additional payment apart from the salary the company has already paid?
Are employees in Vietnam eligible for additional allowance from the company if they do not pay compulsory social insurance? - Illustrative image
Lawnet provides answers to your question as follows:
Who do not participate in compulsory social insurance in Vietnam?
According to current regulations, in the following cases, the employee will not be subject to compulsory social insurance contributions in Vietnam. To be specific:
Case | Details | Legal Basis |
Employees not belonging to the following cases: |
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Clause 1 and Clause 2 of Article 2 of the Law on Social Insurance 2014 |
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Employees in probation period | Employees in probation period not signing labor contracts are not required to participate in compulsory social insurance | Article 26 of the Labor Code 2012 |
Employees receiving pensions | When retired employees are working under a new labor contract, in addition to the benefits received from the pension, elderly employees still enjoy the benefits as agreed in the labor contract. However, retirees and social insurance beneficiaries who are signing labor contracts are not subject to compulsory social insurance contributions | According to Clause 2 of Article 167 of the Labor Code 2012 and Clause 9 of Article 123 of the Law on Social Insurance 2014 |
Are employees in Vietnam eligible for additional allowance from the company if they do not pay compulsory social insurance?
Article 186 of the Labor Code 2012 stipulates participation in social insurance and health insurance as follows:
Article 186. Participation in social insurance and health insurance
1. Employers and employees must participate in compulsory social insurance, compulsory health insurance, compulsory unemployment insurance, and enjoy the policies as prescribed by the laws on social insurance and health insurance.
Encouraging employers and employees to implement other forms of social insurance for employees.
2. During the period when employees are on leave and enjoying social insurance benefits, employers are not required to pay wages to employees.
3. For employees not subject to compulsory social insurance, compulsory health insurance, compulsory unemployment insurance contributions, in addition to paying wages according to their jobs, employers are responsible for paying an additional amount at the same time with the employee's wage payment equivalent to the compulsory social insurance, compulsory health insurance, compulsory unemployment insurance premiums and annual leave payment as stipulated.
Thus, employees are not subject to compulsory social insurance contributions in the above-mentioned cases. In addition to paying wages according to their jobs, the company is responsible for paying employees an additional amount equivalent to the compulsory social insurance, compulsory health insurance, compulsory unemployment insurance premiums, and annual leave payment as stipulated.
Ty Na
- Key word:
- social insurance
- employee
- Vietnam