Is it illegal to have agreement on not paying social insurance in Vietnam?

Is it illegal to have agreement on not paying social insurance in Vietnam? (Illustration)

The employment contract between you and the company is a fixed-term employment contract according to point b, clause 1, Article 20 of the Labor Code 2019.

According to Article 2 of the Law on Social Insurance 2014, the subjects participating in compulsory social insurance include Vietnamese employees working under a fixed-term employment contracts. Therefore, you are required to pay social insurance contributions.

Thus, you and the company cannot agree on not paying social insurance.

In addition, Article 38 of Decree 28/2020/ND-CP also stipulates fines for violations against compulsory social insurance payment in Vietnam, specifically:

- For employees in Vietnam: A fine from VND 500,000 to VND 1,000,000 shall be imposed on employment service providers that inform employment service activities in breach of laws.

- For employers in Vietnam:

• A fined at the rates of between 12% and 15% of total sum of compulsory social insurance and unemployment insurance contributions at the date of issuance of administrative penalty notice, but not exceeding VND 75,000,000 (Point a, Clause 4, Article 38 of Decree 28).

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  A fined at the rates of between 18% and 20% of total sum of compulsory social insurance and unemployment insurance contributions at the time of issuance of administrative penalty notice, but not exceeding VND 75,000,000 for any employer falling to pay compulsory social insurance and unemployment insurance contributions for all of their employees eligible for participation in compulsory social insurance and unemployment insurance plans not to the extent of being liable to criminal prosecution

In addition, violators are also subject to remedial measures such as forced arrears of the amount of compulsory social insurance; forced to pay interest equal to 02 times the average investment interest rate of social insurance fund of the preceding year according to Article 7 of Decree 28.

Bao Ngoc

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