1. What is social insurance?
As per the stipulations outlined in Clause 1, Article 3 of the 2014 Law on Social Insurance, the present definition of social insurance stands as follows: “Social insurance serves as a safeguard to substitute or partially reimburse employees’ earnings in the event of income loss or reduction due to sickness, maternity, workplace accidents, occupational ailments, retirement, or death. This is contingent upon contributions made to the social insurance fund.”
2. Social insurance regimes in Vietnam
There are two types of social insurance:
– Compulsory social insurance is a form of social insurance that is mandated by the government and requires both employees and employers to participate. This type of insurance provides various benefits including sickness benefits, maternity benefits, coverage for occupational accidents and diseases, pension benefits, and death benefits.
– Voluntary social insurance, on the other hand, is a type of social insurance organized by the government where participants have the flexibility to choose their payment levels and methods based on their financial capabilities. The government also provides support by subsidizing social insurance contributions, ensuring that participants can receive appropriate retirement and death benefits. The regimes covered under voluntary social insurance include death benefits and pension benefits.
3. Why do you need to participate in social insurance?
When engaging in social insurance, employees will be entitled to the following advantages:
- Social insurance ensures stability for workers who participate. Participants will receive income replacement or compensation for a portion of their earnings in the event of a decline, inability to work, job loss, or death.
- Upon retirement, participants will receive a monthly pension through various channels, such as their personal bank account, organizations, businesses, or employers.
- In the unfortunate event of the participant’s passing, their relatives will receive funeral benefits and death benefits.
- Participants have the right to file complaints, report any wrongdoing, or take legal action against social -insurance by the law.
- Participants are encouraged to undergo regular assessments to determine their level of reduced working capacity. If eligible for social insurance, the costs of medical assessments will be covered.
- Information regarding social insurance contributions will be provided periodically. Employees have the right to request their employers to furnish details about payments and benefits.
4. Legal regulations on social insurance in Vietnam
Vietnamese legislation has established clear guidelines regarding participation in social insurance to safeguard the well-being of individuals involved:
- Under the current legal framework, employees who partake in any form of insurance are required to make regular contributions and are entitled to corresponding benefits based on the specific insurance scheme they are enrolled in.
- To contribute to the retirement and death fund, employees are obliged to make monthly payments equivalent to 22% of their chosen monthly income.
- Furthermore, employees have the flexibility to from various payment intervals, including monthly, every three months, every six months, or even once for an extended period.
- The law also encompasses provisions for penalizing administrative violations in the areas of labor, social insurance, and Vietnamese workers employed overseas, following the terms stipulated in the employment contract.
- Moreover, the legislation regulates matters about pensions, monthly benefits, and social insurance benefits, ensuring a comprehensive framework for the welfare of participants.
- Specific guidelines are provided regarding the sequence and procedures for implementing social insurance, offering clear instructions for its effective execution.
- Additionally, the law on social insurance includes specific provisions concerning the handling of complaints, denunciations, and violations related to social insurance, thereby safeguarding the rights of participants.
5. FAQs about Social Insurance Law
- Procedure for obtaining a social insurance record
- Eligible period for enrolling in social insurance
- Collection and payment of social insurance contributions
- Rates of social insurance payments
- Reporting violations and lodging complaints
- Management of records
- Resolving regimes and policies
- Utilization of contributions to the social insurance fund
- Availability of medical examination and treatment facilities
- Recipients of social insurance benefits.
6. Social Insurance Law Consulting Services at NT INTERNATIONAL LAW FIRM
At NT INTERNATIONAL LAW FIRM, we offer a comprehensive range of services for social insurance. Our team is prepared to assist and guide you in the following areas:
- Providing support and advice on the benefits and obligations for participants in social insurance.
- Offering consultation on the implementation processes and procedures related to social insurance, ensuring compliance with the law.
- Advising on the necessary documents, records, and papers required when participating in social insurance.
- Offering compulsory social insurance consulting services.
- Providing consultation on voluntary social insurance.
- Offering guidance on social insurance funds.
- Assisting with issues related to complaints and denunciations concerning social insurance.
- Supporting customers in the preparation and submission of documents to competent management agencies.
- Providing consultation on any other related matters.
