Important changes in decision 595/QD-BHXH on management of collection of compusory social insurance that takes effect from 01 may 2017


2017-04-04
  1. Participants
  • If the employees who belong to subject of compulsory social insurance in the Article 2, Law on Social Insurance 2014 are assigned to go study, practice or work inside or outside Vietnam, they still contribute compulsory social insurance when receiving salary at Vietnam.
  • The employees who are enjoying monthly pension, monthly benefits of social insurance and monthly benefits are not subject of compulsory social insurance.
  1. Monthly salary paid for compulsory social insurance premium
  • From 01st January 2016 to 31th December 2017: the monthly salary paid for social insurance premium is the salary rate and its allowances in accordance with clause 1 and item a, clause 2, the Article 4 in the Circular 47/2015/TT-BLĐTBXH. In which: allowances that are amounts offset against the working conditions, the complexity of jobs, the living conditions, and the employee attraction level which is not included or incompletely included in the contractual salary such as position allowance, responsibility allowance; allowance for mobile petrol; allowance for arduous, harmful, and dangerous works; region allowance; attractive allowance and other similar allowances.
  • From 01st January 2018 onwards: the monthly salary paid for social insurance premium is the salary rate and its allowances and other additional payments in accordance with item a, clause 3, the Article 4 in the Circular 47/2015/TT-BLĐTBXH. In which: other additional payments don’t include bonuses prescribed in Article 103 of the Labor Code, initiative bonuses; food expenses between shifts; subsidies on petrol, telephone, transportation, housing, child care, raising children; allowances for employees having dead relative(s), employees having relatives married relatives, employees’ birthday, benefits for employees facing difficulties due to their labor accidents and occupational diseases and other allowances and benefits.
  1. Contribution rate of occupational incident and disease fund

Employers shall monthly contribute 1% of the salary fund for the employees to the occupation accident and disease insurance fund until May, 2017. From 01st June, 2017. This contribution rate is 0.5%.

  1. Calculating of late-payment interest
  • If the units make payment of compulsory social insurance, health insurance and unemployment insurance late for 30 days or more, they must pay the interest of the compulsory social insurance, health insurance and unemployment insurance premium that are unpaid.
  • Within first 15 days in January, Vietnam Social Insurance Department will notice the monthly average interest based on the average interest in item a, b clause 3 Article 6 in the Decision No. 60/2015/QD-TTg.
  1. Compulsory social insurance contribution for employees in the age for retirement
  • For employees who participate in social insurance meet the conditions for age to enjoy their pension but the time of payment of social insurance premium is lack to owe no more than 10 years (120 months), they can choose to payment voluntary social insurance for full 20 years of payment to enjoy pension.
  • In case employees who participate in social insurance meet the conditions for age to enjoy their pension but the time of payment of social insurance premium is lack to owe more than 10 years, they can continue payment voluntary social insurance until it is less than 10 years. Then, they can payment once for all to enjoy pension.
  1. Compulsory social insurance contribution for employees working for more than 2 enterprises

The employees who have 02 labor contracts or more simultaneously with different units shall pay the social insurance and unemployment insurance premium under the first signed contract; pay the health insurance premium under the labor contract with the highest salary and pay the labor accident, occupational disease insurance with each labor contract.

  1. Compulsory social insurance contribution for employees take maternity leave
  • For employees who take maternity leave from14 working days or longer in a month, the employers are not required to pay social insurance. This period shall be regarded as a period of social insurance payment.
  • Employers must pay social insurance for employees who return to work before ending of maternity period.
  • If the father, the direct fosterer or the intended mother does not take leave, employers have to pay social insurance for them.

Click for detailing of Decision 595/QD-BHXH