Is it mandatory to participate in social insurance during the probationary period?

Whether a probationary period requires compulsory social insurance participation is a question many workers today wonder about. Participation in social insurance greatly affects the rights of employees. A question often asked is whether employees during the probationary period are entitled to benefits from social insurance. To better understand this issue, please read our article below.

Regulations on probation

Probation agreement

Probation is the process in which employees perform work to test their abilities before signing an official labor contract. Article 24 of the Labor Code 2019 regulates probation agreements between employers and employees:

The employer and employee can agree on the probation content stated in the labor contract or agree on probation by signing a probation contract. The main contents of the probationary contract include the following:

• Probation period
• Name and address of the employer and full name and title of the person concluding the labor contract on the employer’s side;
• Full name, date of birth, gender, place of residence, Citizen Identification card number, ID card or passport of the person entering into the labor contract on the employee’s side;
• Work and work location;
• Working time, rest time;
• Labor protection equipment for workers;
• The employee’s salary during the probationary period is agreed upon by both parties but must be at least equal to 85% of the salary of that job.

Note that probation does not apply to employees who sign labor contracts with a term of less than 1 month.

At the end of the probationary period, the employer must notify the employee of the results. If the employee meets the requirements, both parties will sign an official labor contract. In case of failure to meet the requirements, the probationary agreement or labor contract will terminate.

Probation period

The probationary period can be agreed upon by the parties based on the nature and complexity of the job. According to Article 25 of the Labor Code 2019, probation is only allowed once for a job and the following period is guaranteed:

• No more than 180 days for the work of an enterprise manager according to the provisions of the Enterprise Law and the Law on Management and Use of State Capital Invested in Production and Business at Enterprises;
• No more than 60 days for jobs with professional titles that require professional and technical qualifications from college or higher;
• No more than 30 days for jobs with professional titles that require intermediate professional and technical qualifications, technical workers, and professional staff;
• No more than 06 working days for other jobs.

Responsibility to participate in compulsory social insurance for employees

Participating in social insurance is the right and obligation of employees. Article 168 of the 2019 Labor Code clearly states:

• Employers and employees must participate in compulsory social insurance, health insurance, and unemployment insurance; Employees are entitled to benefits according to the provisions of law on social insurance, health insurance and unemployment insurance.
• Employers are responsible for paying social insurance for employees. Social insurance contributions are calculated based on salary, salary allowances and other additional payments.

Pursuant to Clause 1, Article 5 of the Procedure promulgated together with Decision 595/QD-BHXH in 2015, monthly employees pay 8% of their monthly salary to the retirement and death benefit fund. The employer contributes 17.5% of the employee’s monthly salary fund.

Participating in social insurance helps employees enjoy benefits such as sickness, maternity, work accidents, occupational diseases, retirement and death. Employees need to check their social insurance contributions through the social insurance book or look up online on the electronic information portal of Vietnam Social Insurance.

Do probationary workers have to participate in compulsory social insurance?

Whether probation requires mandatory social insurance participation is an issue of concern to many workers and businesses. Participating in social insurance is both a right and an obligation of employees. Pursuant to Clause 1, Article 2 of the Law on Social Insurance 2014, subjects participating in compulsory social insurance include:

• People working under an indefinite-term labor contract, a definite-term labor contract, a seasonal labor contract or a certain job with a term from 3 months to less than 12 months, including including the labor contract signed between the employer and the legal representative of the person under 15 years old according to the provisions of labor law;
• People working under labor contracts with a term of from 01 full month to less than 03 months;
• Officials, civil servants and public employees;
• Defense workers, police workers, and people working in other cipher organizations;
• Officers and professional soldiers of the People’s Army; officers, professional non-commissioned officers, officers, technical non-commissioned officers of the People’s Public Security; People who do cipher work are paid the same as soldiers;
• Non-commissioned officers and soldiers of the People’s Army; non-commissioned officers and soldiers of the People’s Public Security serving for a limited period of time; Military, police, and cipher students studying are entitled to living expenses;
• People working abroad under contracts specified in the Law on Vietnamese workers working abroad under contracts;
• Business managers and cooperative managers receive salaries;
• People who work part-time in communes, wards, and towns.

Thus, it can be seen that to participate in compulsory social insurance, the first condition is to have a labor contract between the employee and the employer.

Currently, probationary agreements can be expressed in two forms:

• Signing a probationary contract;
• Agree on the content of the probationary period stated in the labor contract.

Thus, if the probationary period is within the legal period according to the probationary contract, the employee will not be subject to compulsory social insurance.

If the probationary period according to the labor contract has provisions on the content of the probationary period, the employee will have to participate in mandatory social insurance.

Things to note when signing a probationary contract

When signing a probationary contract, employees should note some important points:

• The probationary contract must be made in writing, clearly stating the probationary period, salary and other terms. Employees need to carefully check the contract content before signing.
• The probationary period must not exceed the provisions of law. During the probationary period, employees are still entitled to basic benefits such as holidays and annual leave according to regulations.
• After the probationary period ends, both parties need to sign an official labor contract if they meet the requirements.

Consulting services for participating in compulsory social insurance

At Long Phan, we provide consulting services to participate in mandatory social insurance, helping workers and businesses understand their rights and obligations. Service scope includes:

• Consulting on cases of compulsory social insurance participation;
• Instructions on procedures for participating in social insurance and how to calculate social insurance premiums
• Instructions for solving problems related to social insurance.
• Consulting on resolving disputes about social insurance

When using consulting services, workers and businesses need to provide full information about labor status, salary and benefits. Consulting experts will analyze the specific situation and give appropriate advice. Consulting services help employees and businesses ensure their participation in social insurance in accordance with regulations and avoid possible risks.

Participating in compulsory social insurance is an important issue, directly affecting the rights of workers and businesses. According to regulations, probation under a probationary contract will not require participation in mandatory social insurance. If you have any questions related to the above issue, please contact Long Phan via hotline: 0906.735.368 for support.