Social insurance payment methods according to current regulations

Social insurance payment methods are methods that workers and businesses can choose to suit their units. According to current regulations, social insurance can be paid monthly, every 3 months or every 6 months. To understand specifically about social insurance payment methods as well as insurance beneficiaries and insurance policies, please refer to our article below.

Social insurance regimes in Vietnam

Pursuant to Article 4 of the Law on Social Insurance 2014, when participating in social insurance, you can enjoy the following benefits:

• Sickness benefits: Ensure financial support for employees when they have to take time off work to treat illness.
• Maternity benefits: Applicable to female and male employees when their wives give birth, financial support during maternity leave.
• Labor accident and occupational disease regime: Compensates workers who have accidents or diseases caused by working conditions.
• Retirement regime: Ensures a stable income for employees upon retirement, based on the time and level of social insurance contributions.
• Death benefit: Supports employees’ relatives in the event of the employee’s death, to reduce the economic burden.

Employees participating in compulsory social insurance will enjoy all of the above benefits, while voluntary social insurance only provides retirement and death benefits.

Who can participate in social insurance?

Compulsory social insurance

According to the provisions of Clause 1, Article 2 of the Law on Social Insurance 2014, employees who are Vietnamese citizens subject to compulsory 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;
• 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;
• Business managers and cooperative managers receive salaries;
• People who work part-time in communes, wards, and towns.

Employees who are foreign citizens working in Vietnam have a work permit or practice certificate or practice license issued by a competent Vietnamese agency.

Employers participating in mandatory social insurance include:

• State agencies, public service units, people’s armed forces units;
• Political organizations, socio-political organizations, socio-political-professional organizations, socio-professional organizations, other social organizations;
• Foreign agencies, organizations, and international organizations operating in Vietnamese territory; enterprises, cooperatives, individual business households, cooperative groups, other organizations and individuals that hire and employ workers under labor contracts.

Voluntary social insurance

Voluntary social insurance applies to employees who are Vietnamese citizens aged 15 years or older and are not subject to mandatory social insurance.

The current social insurance payment methods for employees

The current social insurance payment method is prescribed according to Article 7 of Decision 595/QD-BHXH 2017 (amended by Decision 505/QD-BHXH 2020 and Decision 888/QD-BHXH 2018), specifically as follows:

• Monthly payment: The employer deducts the monthly social insurance payment from the employee’s salary fund and transfers it to the collection account of the social insurance agency. This form requires timely submission at the end of each month.
• Payment every 03 or 06 months: applicable to enterprises, cooperatives, individual business households, cooperative groups operating in the fields of agriculture, forestry, fishery or salt production with salary based on product or contract.
• Closing by area: The unit that has its headquarters in any province must register to participate in social insurance contributions in that province according to the decentralization of the provincial social insurance agency.

Any branch of an enterprise operating in an area must pay social insurance in that area or at the parent company.

• Payment method for workers working abroad: Workers working abroad can choose to pay social insurance every 3, 6, or 12 months.

In case the employee has their contract extended or signed a new labor contract right in the receiving country, they must pay social insurance according to the above method or pay it back to the social insurance agency after returning home.

Consulting services on social insurance payment methods according to current regulations at Long Phan

Long Phan provides professional consulting services on social insurance payment methods for businesses and employees. The following are consulting services:

• Consulting on cases of compulsory and voluntary social insurance participation
• Consulting on social insurance regimes for employees
• Consulting on social insurance payment rates
• Consulting on social insurance payment methods and payment methods
• Instructions on dossiers and procedures for receiving social insurance benefits
• Consulting on other issues related to social insurance.

Understanding and properly applying social insurance payment methods will help workers protect their rights, as well as contribute to building a strong and secure society. If you need specific advice on how to pay social insurance, please contact Long Phan via the hotline: 0906735386. Our team of consulting experts will provide detailed instructions and help customers complete the social insurance payment process.