Updated at 24/05/2023 - 10:41 am
From an enterprise perspective, participating in social insurance is a mandatory obligation to ensure benefits for employees during illness, accident, maternity or retirement. To fulfill this responsibility and obligation in accordance with the law, enterprises need to determine the subjects who need to participate in compulsory social insurance and the rate of social insurance contributions according to the latest regulations.
A complete and detailed guide on social insurance for businesses
Regulations on participation in compulsory social insurance for businesses #
1. What is compulsory social insurance?
Compulsory social insurance is a type of social insurance organized by the State workers , and employer must participate.
To determine who will have to participate in Social Insurance, it is necessary to clarify who are the employees, who are the foreign workers, and who are the employers?
2. Who must participate in compulsory social insurance?
a) The employee is a Vietnamese citizen:
Employees being Vietnamese citizens are eligible to participate in compulsory social insurance, including:
- Persons working under an indefinite term labor contract, a definite term labor contract, a seasonal labor contract or a certain job with a term from full 03 months to less than 12 months, counting both labor contracts signed between the employer and the legal representative of the person under 15 years of age in accordance with the labor law;
- Persons working under labor contracts with a term from full 01 month to less than 03 months;
- Persons who go to work abroad under contracts as prescribed in the Law on Vietnamese workers working abroad under contracts;
- Enterprise managers, managers of cooperatives enjoy salary;
b) The employee is a foreign citizen:
The employee is a foreign citizen who comes to Vietnam to work with a work permit or practice certificate or a practicing license issued by a competent Vietnamese agency and has an indefinite term labor contract. , definite-term labor contract of full 01 year or more with the employer in Vietnam.
c) Responsibility to pay social insurance of enterprises
Employers participating in compulsory social insurance include state agencies, non-business 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 the Vietnamese territory; enterprises, cooperatives, individual business households, cooperative groups, other organizations and individuals that hire and use labor under labor contracts.
Rate of payment, rate of payment of social insurance at the enterprise #
1. What is the compulsory social insurance premium based on?
The compulsory social insurance premium is calculated on the basis of the employee's monthly salary, including the contribution to the retirement, survivorship, sickness and maternity fund and the occupational accident and disease fund (according to Article 85). , Article 86 of the Law on Social Insurance, Decree No. 58/2020/ND-CP).
In which:
- The maximum monthly salary on which social insurance, health insurance, and occupational accident and occupational disease insurance premiums are based is 20 months base salary (29.800.000 VND). The base salary in 2021 is currently 1.490.000 VND)
- The maximum monthly salary for UI payment is 20 months Region minimum wage (88.400.000 VND). The regional minimum salary in 2021 is currently VND 4.420.000.
2. The level of social insurance that enterprises must pay for Vietnamese employees
Closing rate of enterprises (Employers): 21,5% | ||||
Social Insurance | UI | Health insurance | ||
Retirement - death | Maternity sickness | Occupational accidents and diseases | ||
14% | 3% | 0,5% | 1% | 3% |
Employee contribution rate: 10,5% | ||||
Social Insurance | UI | Health insurance | ||
Retirement-survival | Maternity sickness | Occupational accidents and diseases | ||
8% |
|
| 1% | 1,5% |
Total payment for hiring 1 Vietnamese employee: 32%
3. The level of social insurance that enterprises must pay for foreign workers
Closing rate of enterprises (Employers): 6.5% | ||||
Social Insurance | UI | Health insurance | ||
Retirement - death | Maternity sickness | Occupational accidents and diseases | ||
3.5% | 0,5% | 3% | ||
Employee contribution rate: 1,5% | ||||
Social Insurance | UI | Health insurance | ||
Retirement-survival | Maternity sickness | Occupational accidents and diseases | ||
|
| 1,5% | ||
Total payment for hiring 1 foreign worker: 8%
Wages calculated for social insurance contributions #
The salary calculated for social insurance contributions from January 01, 01 to December 2016, 31
From January 01, 01 to December 2016, 31, the monthly salary on which social insurance, health insurance and unemployment insurance premiums are based is the salary and salary allowance specified in Clause 12 and Point a, Clause 2017, Article 1 of Circular No. 2/ 4/TT-BLDTBXH dated November 47, 2015 of the Ministry of Labor, War Invalids and Social Affairs guiding the implementation of a number of articles on labor contracts, labor discipline, and material responsibilities of Decree No. 16/11/ND- The Government's CP dated January 2015, 05 details and guides the implementation of a number of contents of the Labor Code (hereinafter referred to as Circular No. 2015/12/TT-BLDTBXH).
Salary allowances specified at Point a, Clause 2, Article 4 of Circular No. 47/2015 / TT-BLDTBXH are salary allowances to compensate for factors of working conditions, complexity of work and conditions. activities, the level of labor attraction for which the agreed salary in the labor contract has not been taken into account or has not been fully calculated such as: position and title allowances; responsibility allowance; allowances for heavy, hazardous and dangerous work; seniority allowances; area allowance; mobile allowances; Attractive allowances and allowances of a similar nature.
The salary calculated for social insurance contributions from January 01, 01 to December 2018, 31
From January 01, 01 onwards, the monthly salary on which social insurance, health insurance and unemployment insurance premiums are based is the salary and allowance specified in Clause 2018 of this Article and other additional amounts as prescribed at Point a, Clause 1, Article 3. of Circular No. 4/47/TT-BLDTBXH.
Salary calculated for social insurance contributions from January 01, 01 onward
Circular 06/2021 has just been issued by the Ministry of Labor, War Invalids and Social Affairs on July 07, 07, stipulating the basis for paying compulsory social insurance (social insurance) accordingly, from January 2021, 01, the Incomes payable to social insurance and other incomes not included in social insurance contributions are specified as follows:
Incomes for calculation of compulsory social insurance contributions:
1. Salary by job or title
2. Salary allowances as agreed by both parties, including:
- Salary allowances to compensate for factors of working conditions, nature of work complexity, living conditions, level of labor attraction that the salary agreed upon in the labor contract has not been taken into account or incomplete calculation;
- Salary allowances associated with the employee's working process and performance results.
For example:
+ Allowances for positions and titles;
+ Responsibility allowance;
+ Allowances for heavy, toxic and dangerous work;
+ Seniority allowance;
+ Regional allowance;
+ Mobile allowance;
+ Attraction allowance and allowances of similar nature.
3. The additional amounts are determined with a specific salary along with the salary agreed in the labor contract and paid regularly in each salary period.
Incomes excluding compulsory social insurance contributions:
1. Bonuses as prescribed in Article 104 of the Labor Code 2019
2. Meal money in between shifts
3. Support payments such as: Gasoline; Telephone; Go; Housing fees; Child care money; Raising children
4. Employee allowances: Having a dead relative; Have a married relative; Employee's birthday
5. Allowance for employees in difficult circumstances when encountering occupational accidents and diseases
6. Additional amounts for which a specific amount of money cannot be determined together with the salary rate agreed in the labor contract, paid regularly or irregularly in each pay period associated with the working process and work performance results. workers' work.
Pay social insurance for special cases
During the period when the employee stops working according to the provisions of the labor law but still receives salary, the employee and the employer shall pay social insurance, health insurance and unemployment insurance premium according to the salary the employee is entitled to enjoy. during layoff.
Answer the question: "The allowances do not have to pay social insurance?"
This is a question for the previous and year period, and how to understand allowances as an addition to the main salary. To understand correctly, allowances are allowances according to the provisions of the Labor Law and clearly stated in the labor contract. From January 01, 01 these allowances are the income calculated for payment of compulsory social insurance.
Instructions on how to determine the salary as a basis for calculating social insurance premiums #
1. Important principles to know when determining the amount of compulsory social insurance payment
The salary as the basis for payment of compulsory social insurance is the income that is consistent with the entire salary system of the enterprise and the provisions of the law, not calculated by dividing the employee's income into amounts of the same nature. simple arithmetic.
2. Formula for calculating the amount of social insurance premium payment
Amount of social insurance payment = The amount of salary used as the basis for paying social insurance contributions x (multiply) Social insurance rate according to the law.
2. The process of determining the most accurate salary as a basis for calculating social insurance contributions
Enterprises need to determine the employee's salary, including the following incomes:
a) Salary according to job or title:
The salary calculated according to the time of the job or title according to the salary scale, the salary table developed by the employer in accordance with the provisions of Article 93 of the Labor Code; for employees who receive salary by product or package salary, write the salary calculated by time to determine the product unit price or package salary;
2. The labor level must be the average level to ensure that the majority of employees can do it without having to prolong the normal working hours and must be tested before it is officially issued.
3. Employers must consult the representative organization of employees at the grassroots level for the place where the representative organization of employees is located when formulating the salary scale, wage table and labor norms. .
Salary scale, salary table and labor rate must be publicly announced at the workplace before implementation.
b) Salary allowance as agreed by the two parties as follows:
b1) Salary allowances to compensate for factors such as working conditions, job complexity, living conditions, and level of labor attraction that the salary agreed upon in the labor contract has not been taken into account. or incomplete calculation;
b2) Salary allowances associated with the employee's working process and performance results.
c) Other additional amounts as agreed upon by the two parties as follows:
c1) Additional amounts for which a specific amount can be determined together with the salary agreed upon in the labor contract and paid regularly in each pay period;
c2) Additional amounts for which the specific amount of money cannot be determined together with the salary level agreed in the labor contract, paid regularly or irregularly in each pay period associated with the working process and job performance results. workers' work.
For other regimes and benefits such as bonuses as prescribed in Article 104 of the Labor Code, initiative bonuses; Mid-shift meal; allowances for petrol, phone, travel, housing, child care, child rearing; support when employees have relatives died, employees have relatives getting married, employees' birthdays, allowances for employees in difficult circumstances when suffering from occupational accidents, occupational diseases and other allowances and allowances shall be recorded in a separate section in the labor contract.
d) Other benefits
For other regimes and benefits such as bonuses as prescribed in Article 104 of the Labor Code, initiative bonuses; Mid-shift meal; allowances for petrol, phone, travel, housing, child care, child rearing; support when employees have relatives died, employees have relatives getting married, employees' birthdays, allowances for employees in difficult circumstances when suffering from occupational accidents, occupational diseases and other allowances and allowances shall be recorded in a separate section in the labor contract.
2. Regulations on bonus are decided by the employer and publicly announced at the workplace after consulting with the representative organization of employees at the grassroots for the place where the representative organization of the employee is located. at work.
FAQ - Frequently asked questions about corporate social insurance #
Pursuant to current regulations on social insurance for enterprises, the subjects who must participate in social insurance are:
- Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or according to a certain job with a term of from full 03 months to less than 12 months, including labor contracts signed between the employer and the employer. the legal representative of the person under 15 years old in accordance with the labor law;
- Persons working under labor contracts with a term of from 01 month to less than 03 months (from January 01, 01);
- Enterprise managers, managers of cooperatives enjoy salary;
- The employee is a foreign citizen who comes to Vietnam to work with a work permit or practice certificate or a practicing license issued by a competent Vietnamese agency (implemented from January 01, 01 according to the provisions of law). Government regulations).
- Employers that are enterprises, cooperatives, individual business households, cooperative groups, other organizations and individuals that hire or use employees in one of the above cases are also eligible for participation in the labor force. compulsory social insurance.
Thus, the Law does not stipulate how many new employees participate in compulsory social insurance Even though enterprises have few employees, if they have employees who have signed contracts of 01 month or more, they must participate in compulsory social insurance for employees.
Enterprises that employ workers and pay salaries but do not participate in social insurance shall be sanctioned according to law as follows:
- Social insurance inspector
- Penalties for administrative violations of social insurance
- Social insurance arrears and penalties for late payment of social insurance from the time the obligation arises until the time of inspection
- Do not include wages in business expenses
Enterprises that incorrectly calculate the salary as a basis for calculating social insurance contributions, leading to underpayment of social insurance premiums, shall be sanctioned according to the provisions of law as follows:
- Social insurance inspector
- Penalties for administrative violations of social insurance
- Social insurance arrears and penalties for late payment of social insurance underpayments from the time the obligation arises to the time of inspection
As stated above, true about social insurance must meet:
- Full payment for the number of employees working under labor contracts of 01 month or more
- Pay the full amount: That is, the amount of social insurance payment = the salary as the basis for payment of social insurance x the rate of social insurance. The salary as the basis for payment of social insurance premiums must comply with the Labor Law and the Law on Social Insurance.
Thus, to determine whether it is correct, sufficient or not, it is necessary to check and review the above two items.
According to regulations on e-transactions in the field of social insurance, enterprises can choose to register and declare and pay social insurance electronically directly to the portal of Vietnam Social Insurance (Vietnam Social Insurance).https://gddt.baohiemxahoi.gov.vn/) or through the organization I-VAN.
However, only one provider can be selected and registered at a time (either I-VAN service providers or Electronic Transaction Portal).
Depending on the choice of the business, the business can choose the appropriate method.
The system of regulations on social insurance for enterprises #
Updated at 24/05/2023 - 10:41 am
Regulations on payment of social insurance #
Amending and supplementing a number of articles of Circular No. 59/2015/TT-BLDTBXH guiding a number of articles of the Law on Social Insurance regarding compulsory social insurance.
Updated at 30/06/2022 – 04:25 pm Date
Updated at 26/07/2022 – 01:56 pm Date
This Decree details a number of articles of the Law on Social Insurance on compulsory social insurance for Vietnamese employees working under labor contracts.
Regulations on penalties for violations of social insurance #
This Decree stipulates acts, sanctioning forms, sanctioning levels, remedial measures, the field of labor, social insurance ...
This Decree stipulates issues related to inspection of payment of social insurance, unemployment insurance and health insurance.
