05 benefits covered by compulsory social insurance in Vietnam

05 benefits covered by compulsory social insurance in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. 05 benefits covered by compulsory social insurance in Vietnam

According to Clause 1, Article 4 of the Law on Social Insurance 2014, compulsory social insurance covers the following benefits:

- Sickness;

- Maternity;

- Occupational accident and occupational disease;

- Retirement;

- Survivorship allowance.

2. Subjects participating in compulsory social insurance in Vietnam

Employees being Vietnamese citizens shall be covered by compulsory social insurance, including:

- 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;

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

- Cadres, civil servants and public employees;

- Defense workers, public security workers and persons doing other jobs in cipher organizations;

- 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;

- 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;

- Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;

- Salaried managers of enterprises and cooperatives;

- Part-time staffs in communes, wards and townships.

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 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.

(Article 2 of the Law on Social Insurance 2014)

3. Social insurance principles in Vietnam

- Levels of social insurance allowances shall be calculated based on the social insurance premium rate, the premium payment period and the sharing among the insured.

- The compulsory social insurance premium rate shall be calculated based on an employee’s monthly salary. The voluntary social insurance premium rate shall be calculated based on the monthly income selected by employees.

- Employees who pay both compulsory and voluntary social insurance premiums are entitled to the retirement benefits and survivorship allowance benefits based on their period of social insurance premium payment. The period of social insurance premium payment already calculated for enjoying a lump-sum social insurance allowance shall not be included in the period used to calculate social insurance benefits.

- The social insurance fund shall be managed in a centralized, uniform, public and transparent manner; used for proper purposes and independently accounted by component funds and groups of the insured subject to the state- prescribed salary benefits and the employer-decided salary benefits.

- Social insurance shall be implemented in a simple, easy and convenient manner, promptly and fully ensuring the interests of the insured.

(Article 5 of the Law on Social Insurance 2014)

Nguyen Ngoc Que Anh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE