New key points of Decision No. 595/QD-BHXH promulgating provisions on management of collection of compulsory social insurance

  1. Subjects of compulsory social insurance contribution
  • From 01st Jan, 2018: Persons working under labor contracts with a term of between full 1 month and under 3 months (excepting probation contracts according to regulations of labor law).
  • Employees who are foreign citizens working in Vietnam with work permits or practice certificates or practice licenses granted by competent Vietnamese agencies shall be covered by compulsory social insurance under the Government’s regulations
  1. Subjects of occupational incident and disease insurance contribution

In case employees have 02 labor contracts or more simultaneously with different units, employer have to contribute occupational incident and disease insurance for each signed labor contract if they are subject of compulsory social insurance.

  • From 01st June, 2017, the contribution rate of occupational incident and disease insurance is 0.5% of the salary fund for social insurance contribution of employees.
  1. Subjects of health insurance contribution

If health insurance participants belong to different target groups, they are covered by the health insurance in the following order:

  1. Contributed group by employee and employer
  2. Contributed group by social insurance organization
  3. Contributed group by government
  4. Contributed group who are supported by state budget
  5. Contributed group by household
  1. Cases that are not required to pay social insurance premiums

Employees who neither work nor receive salary for 14 working days or more in a month are not required to pay social insurance premiums in that month. This period shall not be counted for enjoyment of social insurance regimes, except cases of maternity leave.

  1. Timeline for decreasing reports

Enterprises that submit the decreasing report to the social insurance department from 1st of month have to pay health insurance contribution of that month and the delayed months. To avoid pay the additional health insurance contribution for the following month, enterprise may submit the decreasing report in the previous month. In Hanoi, the timeline for submitting decreasing reports is all days in the month while this timeline just starts from on 28th each month in Ho Chi Minh.

  1. The compensation and other benefits which social insurance premiums aren’t based

The monthly salary of social insurance contribution is exclusive the following benefits shall be specified in a separate item in the labor contract: 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.

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