Dear: Social insurance of regions

In order to promptly implement the Law on Social Insurance (SI) No. 41/2024/QH15 of the 7th National Assembly of the Socialist Republic of Vietnam, 29th session, passed on June 6, 2024 and the Law amending and supplementing a number of articles of the Law on Health Insurance (SI) of the 8th National Assembly of the Socialist Republic of Vietnam, 27th session, passed on November 11, 2024, effective from July 01, 7. While waiting for the Government and Ministries to issue documents guiding the implementation; so that the new regulations can be put into practice immediately after the Law comes into effect, Vietnam Social Security summarizes the new contents of the SI Law, the HI Law, and local social insurance that need to be implemented:

1. New points about subjects, contribution levels, and payment methods of social insurance and health insurance

1.1. About Compulsory Social Insurance

1.1.1. Expanding the subjects participating in compulsory social insurance:

a) For Vietnamese employees who are subject to compulsory social insurance, there are 13 groups; in which 06 groups of participants are both expanded and clarified, including:

(1) The employee and the employer agree by another name (not using the name Labor Contract) but the content shows the paid work, salary and management, operation and supervision of one party (clarification - consistent with the provisions on Labor Contract in the 2019 Labor Code);

(2) Regular militia (only pay compulsory social insurance into the pension and death fund and by the employer (State budget)[1]);

(3) Non-professional workers in villages and residential groups;

(4) Employees working under part-time labor contracts, with total monthly salary equal to or higher than the lowest salary used as the basis for compulsory social insurance contributions (equal to the reference level[2]);

(5) Business household owners of business households with business registration participating in accordance with Government regulations[3];

(6) Enterprise managers, controllers, representatives of state capital, representatives of enterprise capital at the company and parent company, members of the Board of Directors, General Directors, Directors, members of the Board of Supervisors or controllers and other elected management positions of cooperatives and cooperative unions do not receive salaries;

b) For foreign employees working in Vietnam:

Inheriting the provisions of current law and amending and supplementing some provisions accordingly as follows:

(1) Abolish the regulation: Having a work permit or practice certificate or practice license;

(2) Supplementing regulations on subjects not subject to compulsory social insurance participation: International treaties to which the Socialist Republic of Vietnam is a member have other provisions;

(3) Amendment of regulations: At the time of signing the labor contract, the employee has reached retirement age as prescribed in Clause 2, Article 169 of the Labor Code.

1.1.2. Determining subjects participating in compulsory social insurance

In Article 30, the Social Insurance Law 2024 adds the following provisions:

(1) The Social Insurance Agency shall preside over and coordinate with relevant agencies, organizations and individuals in identifying and monitoring subjects participating in compulsory social insurance; urging and guiding the preparation of dossiers for registration to participate in compulsory social insurance.

(2) The Social Insurance Agency shall preside over and coordinate with relevant agencies, organizations and individuals to mobilize and develop voluntary social insurance participants.

(3) The agencies in charge of the national database and specialized databases on labor, population, tax, and business registration are responsible for connecting and sharing information and data related to participants and people subject to social insurance with the social insurance agency according to Government regulations.

1.1.3. Basis for compulsory social insurance payment

(1) The 2024 Social Insurance Law basically inherits current regulations and amends and supplements regulations on replacing the basic salary with a reference level; the current reference level is equal to the basic salary.

(2) Business household owners of registered business households and Business managers, controllers, representatives of state capital, representatives of enterprise capital at the company and parent company, members of the Board of Directors, General Directors, Directors, members of the Board of Supervisors or controllers and other elected management positions of cooperatives and cooperative unions who do not receive salaries may choose their salary as the basis for compulsory social insurance contributions, but the lowest is equal to the reference level and the highest is 20 times the reference level at the time of contribution.

1.1.4. Regarding compulsory Social Insurance contribution level:

(1) The 2024 Law on Social Insurance stipulates the social insurance contribution rate for part-time workers in communes, wards and towns, including contributions to the sickness and maternity fund.

(2) The standing militia pays compulsory social insurance contributions to the pension and death fund and is fully paid by the employer (state budget).

1.1.5. Compulsory Social Insurance payment period:

Basically inheriting current regulations, adding regulations on the latest deadline for compulsory social insurance payment (last day of the following month).

1.2. Voluntary social insurance

a) Regarding subjects participating in voluntary social insurance

Inheriting the provisions of current law and clarifying: People who are temporarily suspending the performance of labor contracts or work contracts, except in cases where the two parties have an agreement on compulsory social insurance payment during this period.

b) Regarding the regime for voluntary social insurance

Supplementing incentive policies to develop voluntary social insurance participants: A mother participating in voluntary social insurance who gives birth, or a father participating in voluntary social insurance whose wife gives birth, if meeting the conditions on social insurance payment period, will receive maternity allowance at the rate of 2.000.000 VND for each child born.

c) On voluntary social insurance contribution levels

According to the provisions of Clause 1, Article 36 of the Law on Social Insurance 2024: Voluntary social insurance participants pay monthly 22% of their income as the basis for voluntary social insurance contributions to the pension and death benefit fund.

The reference level[4] is the amount decided by the Government to be used to calculate the contribution and benefit levels of a number of social insurance regimes prescribed in the Law.

d) On the basis of voluntary social insurance payment

According to the provisions of Clause 2, Article 31 of the Law on Social Insurance 2024: The income used as the basis for voluntary social insurance contributions is at least equal to the poverty line for rural areas and at most 20 times the reference level at the time of contribution.

e) Transitional regulations for voluntary social insurance participants before January 01, 01

People who participate in voluntary social insurance before January 01, 01 and have paid voluntary social insurance for 2021 years or more will be entitled to receive a pension when they reach the age of 20 for men and 60 for women, except in cases where employees wish to receive a pension according to the provisions of Article 55 of the Law on Social Insurance 98.

1.3. About Health Insurance

1.3.1. Regarding health insurance participants, according to regulations, there are 05 groups:

a) Group paid by employer or employee or jointly paid

– For Vietnamese employees, the regulation expands the number of participating groups to 4 to ensure consistency with the participating groups stipulated in the Law on Social Insurance:

(1) Employees working under a fixed-term labor contract with a term of 01 month or more, including cases where the employee and the employer agree on a different name but with content showing the paid work, salary and management, operation and supervision of one party;

(2) Enterprise managers, controllers, representatives of state capital, representatives of enterprise capital as prescribed by law; members of the Board of Directors, General Directors, Directors, members of the Board of Supervisors or controllers and other elected management positions of cooperatives and cooperative unions as prescribed by the Law on Cooperatives do not receive salaries;

(3) Employees working under part-time labor contracts whose monthly salary is equal to or higher than the lowest salary used as the basis for compulsory social insurance contributions as prescribed by the law on social insurance;

(4) Business owners of registered business households are subject to compulsory social insurance according to the provisions of the law on social insurance.

– For foreign employees working in Vietnam, additional regulations are added to ensure consistency with the participating subjects specified in the Law on Social Insurance.

b) The group paid by the social insurance agency, adding 02 participants must pay health insurance according to the prescribed level that the 2008 Health Insurance Law and the 2014 Health Insurance Law stipulate that they do not have to pay but are still entitled to health insurance benefits.

– Employees take sick leave for 14 working days or more in a month according to the provisions of the law on social insurance.

– Employees who take maternity leave for 14 working days or more in a month according to the provisions of the law on social insurance.

c) Group funded by the state budget, adding 03 groups of participants in line with the provisions of the Law on Social Insurance; more specific regulations for 01 group of monthly beneficiaries.

(1) Ethnic minorities from near-poor households residing in communes and villages in ethnic minority and mountainous areas;

(2) People from 70 years old to under 75 years old from near-poor households receiving monthly survivor benefits;

(3) Employees who are not eligible for pension and have not reached the age of receiving social pension benefits and are receiving monthly benefits according to the provisions of the law on social insurance.

(4) People receiving monthly pension benefits who are eligible for social benefits.

d) Groups supported by the state budget for contribution levels, adding 05 groups of subjects in line with the provisions of relevant Laws, expanding the scope of medical staff.

(1) People participating in the force to protect security and order at the grassroots level;

(2) Village health workers; village midwives;

(3) Non-professional workers in villages and residential groups according to the provisions of law;

(4) Ethnic minorities living in communes that are no longer identified as areas with difficult or especially difficult socio-economic conditions will receive state budget support to pay health insurance according to Government regulations;

(5) People awarded the title of People's Artisan or Meritorious Artisan according to the provisions of the Law on Cultural Heritage;

(6) Victims as defined by the Law on Prevention and Combat of Human Trafficking.

e) Group of self-paid health insurance, expanded and added 02 groups of participants:

(1) People living and working, people being raised and cared for in charitable and religious organizations and establishments;

(2) Employees on unpaid leave or suspension of employment contract.

1.3.2. About the base of closure

– The 2024 Health Insurance Law basically inherits current regulations and amends and supplements regulations on basic salary equal to the reference level.

– For some participants in the group paid by the employer or paid by the employee or jointly paid, the health insurance contribution level is determined according to the percentage of salary used as the basis for compulsory social insurance contribution according to the provisions of the Law on Social Insurance.

1.3.3. About contribution level, contribution responsibility, contribution support level (according to attached appendix 01)

1.3.4. About the closing method

The 2024 Law on Health Insurance basically inherits the provisions of the current Law; stipulates additional payment methods for employers and business owners of registered business households; Enterprise managers, controllers, representatives of state capital, representatives of enterprise capital as prescribed by law; members of the Board of Directors, General Directors, Directors, members of the Board of Supervisors or controllers and other elected management positions of cooperatives and cooperative unions as prescribed by the Law on Cooperatives who do not receive salaries shall pay the full amount of money they are responsible for paying directly to the social insurance agency or through business households, enterprises, cooperatives, and cooperative unions participating in management by paying monthly, every 03 months or every 06 months.

The latest deadline for paying health insurance for employers is regulated in accordance with the provisions of the Law on Social Insurance.

1.3.5. Regarding determining the order of health insurance payment in the case where a person simultaneously belongs to many different health insurance participants

People who are simultaneously covered by multiple health insurance categories, the regulations add some specific cases:

(1) Participants who are subjects specified in the group supported by the State budget for the contribution level (except for students) and are also subjects participating in family health insurance can choose the subjects participating in health insurance.

(2) Participants belonging to many subjects receiving state budget support for contribution levels can choose to participate according to the subject with the highest support level.

2. Regulations on late payment and evasion of payment of social insurance, unemployment insurance and health insurance

2.1. Regulations on urging the implementation of the responsibility to pay compulsory social insurance and unemployment insurance (Article 35 - Law on Social Insurance)

– Social insurance agencies are responsible for detecting and urging in writing employers who are late in paying or evading mandatory social insurance and unemployment insurance.

– Social insurance agencies shall publicly disclose on the Social Insurance Agency's Electronic Information Portal the cases of employers delaying or evading payment of compulsory social insurance and unemployment insurance.

– Social insurance agencies send information about employers who are late in paying or evading mandatory social insurance and unemployment insurance to the state management agency of social insurance, unemployment insurance and relevant inspection agencies for consideration and handling according to their authority.

2.2. Regulations on late payment of compulsory social insurance and unemployment insurance (Article 38 - Law on Social Insurance)

Late payment of compulsory social insurance and unemployment insurance is an act of an employer in one of the following cases:

– Not paying or not fully paying the amount required to be paid according to the registered compulsory social insurance and unemployment insurance registration dossier since the latest social insurance payment date prescribed in Clause 4, Article 34 of the Law on Social Insurance 2024 or since the latest unemployment insurance payment date prescribed by the law on unemployment insurance, except for the cases prescribed in Point d and Point e, Clause 1, Article 39 of the Law on Social Insurance 2024;

– Failure to register or incomplete registration of the number of people required to participate in compulsory social insurance within 60 days from the date of expiry of the deadline specified in Clause 1, Article 28 of the Law on Social Insurance 2024;

– Failure to register or incomplete registration of the number of people required to participate in unemployment insurance within 60 days from the date of expiration of the period for participation in unemployment insurance as prescribed by the law on unemployment insurance;

2.3. Regulations on late payment of health insurance (Article 48a - Law on Health Insurance)

Late payment of health insurance is an act of the employer in one of the following cases:

– Not paying or not paying in full the amount of health insurance premiums required since the latest date of health insurance payment as prescribed in Clause 8, Article 15 of the 2024 Law on Health Insurance, except for the case prescribed in Point c, Clause 1, Article 48b of this Law;

– Failure to make a list or incomplete list of people required to participate in health insurance within 60 days from the expiry date as prescribed in Point b, Clause 1, Article 17 of the Law on Health Insurance 2024;

2.4. Regulations on evasion of compulsory social insurance and unemployment insurance (Article 39 - Law on Social Insurance)

Evasion of paying compulsory social insurance and unemployment insurance is an act of an employer in one of the following cases to not pay or not fully pay social insurance or unemployment insurance for employees. dynamic:

– After 60 days from the expiry date specified in Clause 1, Article 28 of the Law on Social Insurance 2024, if the employer does not register or does not fully register the number of employees required to participate in compulsory social insurance;

– After 60 days from the date of expiration of the period for participation in unemployment insurance according to the provisions of the law on unemployment insurance, the employer does not register or does not fully register the number of employees required to participate in unemployment insurance;

– Registering salary as the basis for compulsory social insurance payment lower than the provisions in Clause 1, Article 31 of the Social Insurance Law 2024;

– Registering salary as the basis for unemployment insurance payment lower than the provisions of the law on unemployment insurance;

– Failure to pay or incomplete payment of the registered amount of compulsory social insurance after 60 days from the date of compulsory social insurance payment at the latest as prescribed in Clause 4, Article 34 of the Law on Social Insurance 2024 and has been urged by a competent authority as prescribed in Article 35 of this Law;

– Failure to pay or incomplete payment of the registered amount of unemployment insurance after 60 days from the date of payment of unemployment insurance at the latest as prescribed by the law on unemployment insurance and has been urged by the competent authority as prescribed in Article 35 of the Law on Social Insurance 2024;

2.5. Regulations on evasion of health insurance payment (Article 48b - Law on Health Insurance)

Evading health insurance payment is an act of an employer in one of the following cases:

– After 60 days from the expiry date specified in Point b, Clause 1, Article 17 of the 2024 Law on Health Insurance, if the employer does not make a list or makes an incomplete list of the number of people required to participate in health insurance;

– Registering salary as the basis for health insurance payment lower than the salary prescribed in Article 14 of the Law on Health Insurance 2024;

– Failure to pay or incomplete payment of the registered health insurance amount after 60 days from the latest date of health insurance payment as prescribed in Clause 8, Article 15 of the 2024 Law on Health Insurance and has been urged by a competent authority as prescribed by the Government;

2.6. Measures to handle late payment of compulsory social insurance and unemployment insurance (Article 40 - Law on Social Insurance, Clause 2, Article 49 - Law on Health Insurance)

– Mandatory payment of full late payment amount; payment of 0,03%/day calculated on the amount of late social insurance, unemployment insurance, health insurance and the number of days of late payment to the social insurance fund, unemployment insurance fund, health insurance fund.

- Penalize administrative violations according to the provisions of law.

– Do not consider awarding emulation titles or forms of rewards.

2.7. Measures to handle acts of evading mandatory social insurance and unemployment insurance payments (Article 41 - Law on Social Insurance; Clause 3, 4, Article 49 - Law on Health Insurance)

– Mandatory payment of the full amount of evaded payment; payment of 0,03%/day calculated on the amount of evaded social insurance, unemployment insurance, health insurance and the number of days of evaded payment to the social insurance fund, unemployment insurance fund, health insurance fund.

– Sanction administrative violations or prosecute criminal liability according to the provisions of law.

– Do not consider awarding emulation titles or forms of rewards.

– Agencies, organizations, and employers that delay or evade paying health insurance for employees must reimburse all medical examination and treatment costs within the scope of benefits and health insurance levels that employees have paid during the time they did not have a health insurance card due to delay or evading paying health insurance.

2.8. Transition Regulations (Clause 12, Article 141 - Law on Social Insurance; Point d, Clause 5, Article 3 - Law on Health Insurance)

For the amount of compulsory social insurance, unemployment insurance, health insurance that the employer is responsible for paying according to the provisions of Law No. 58/2014/QH13, Law on Employment No. 38/2013/QH13, Law on Health Insurance No. 25/2008/QH12, which has been amended and supplemented by a number of articles under Law No. 32/2013/QH13, Law No. 46/2014/QH13, Law No. 97/2015/QH13, Law No. 35/2018/QH14, Law No. 68/2020/QH14 and Law No. 30/2023/QH15, but by the end of June 30, 6, if not paid or not fully paid, it will be handled according to the provisions on late payment and evasion of payment of Social Insurance Law No. 2025 and Health Insurance Law No. 41.

3. New points related to social insurance books and health insurance cards

3.1. About social insurance book

3.1.1. Regulations on handling registration for participation and issuance of social insurance books for employees working without a contract participating in voluntary occupational accident insurance according to Article 16 of Decree No. 143/2024/ND-CP dated November 01, 11 of the Government stipulating the effective date from January 2024, 01:

“The Social Insurance Agency is responsible for issuing Social Insurance books within the following time limit:

a) 07 days from the date of receipt of complete documents as prescribed for first-time voluntary social insurance participants;

b) 15 days from the date of receipt of complete documents as prescribed for cases of re-issuance of social insurance books; in cases where the verification process of social insurance payment period is complicated, it shall not exceed 45 days. In case of refusal to issue, a written response must be given stating the reason;

c) Within 10 days from the date of receipt of a complete application as prescribed in case of adjustment of social insurance participation information of employees, the social insurance agency must reissue the social insurance book. In case of non-resolve, a written response must be given stating the reason.”

3.1.2. The Social Insurance Law 2024 takes effect from July 01, 7.

– Clause 2, Article 25 of the 2024 Law on Social Insurance stipulates: “No later than January 01, 01, social insurance books will be issued electronically; paper social insurance books will be issued upon request of social insurance participants.”

- Point c, Clause 1, Article 10 of the Law on Social Insurance, social insurance participants have the right to: "Be provided monthly by the social insurance agency with information on social insurance payments via electronic means; have social insurance agency confirm information on social insurance payments upon request".

- Point e, Clause 2, Article 10 of the Law on Social Insurance, beneficiaries of social insurance regimes have the right to: "Be provided monthly by the social insurance agency with information on social insurance benefits via electronic means; have information on social insurance benefits confirmed by the social insurance agency upon request".

3.2. About health insurance card

3.2.1. Add the following codes for health insurance participants:

– LN: Employees are foreign citizens working in Vietnam under a labor contract of 12 months or more with an employer in Vietnam.

– CD: Business owners with business registration are subject to compulsory social insurance.

– VQ: Workers and defense officials serving in the military

– VA: Police officers working in the people's police

– VY: person doing other work in the key organization

– HY: Military students and cryptography students receiving living expenses are foreigners.

– HA: Police students receiving living expenses are foreigners.

– QD: Standing militia

– Contact: People receiving monthly social pension benefits

– LT: Employees who are not eligible for pension and are not old enough to receive social pension benefits and are receiving monthly benefits.

– YT: Village health worker; village midwife.

– KT: Non-professional worker in village, residential group.

– NM: Victim as defined by the Law on Prevention and Combat of Human Trafficking.

– NB: Victims of post-war bombs, mines and explosives as prescribed in Clause 8, Article 3 of Decree No. 18/2019/ND-CP dated February 01, 02 of the Government.

– LK: Employees on unpaid leave or suspension of employment contract.

3.2.2. Regarding the application for health insurance card

According to Clause 1, Article 17 of Law on Health Insurance No. 51/2024/QH15:

a) Health insurance participation declaration form of agencies, organizations, units, individuals, and households for first-time health insurance participants;

b) The list of health insurance participants of the subjects specified in Clause 1, Article 12 of this Law shall be prepared by the employer within 30 days from the date the employee is eligible to participate in health insurance. In case the health insurance participant is the subject specified in Point b and Point d, Clause 1, Article 12 of this Law and submits the dossier himself, the dossier is the declaration specified in Point a of this Clause, submitted to the social insurance agency within 30 days from the date of being determined to be eligible to participate in health insurance;

c) The list of health insurance participants of the subjects specified in Clauses 2, 3, 4 and 5, Article 12 of this Law shall be prepared by the People's Committee at the commune level according to the household, except for the subjects on the list specified in Point d and Point dd of this Clause;

d) The list of health insurance participants of subjects managed by the Ministry of Education and Training, the Ministry of Labor - Invalids and Social Affairs and other ministries and branches as prescribed in Point n, Clause 3, Point b, Clause 4, Article 12 of this Law is prepared by educational institutions and vocational training institutions;

d) The list of health insurance participants of subjects managed by the Ministry of National Defense and the Ministry of Public Security specified in Points a, c, e and h, Clause 1, Points a, b, c, d, l and n, Clause 3, Point b, Clause 4, Article 12 of this Law and the list of subjects specified in Point i, Clause 1, Article 12 of this Law shall be prepared by the Ministry of National Defense and the Ministry of Public Security.

3.3.3. Clause 3, Article 17 of the 2024 Law on Health Insurance stipulates:

“The Government regulates the issuance of health insurance cards in paper and electronic versions.”

3.3.4. Clause 1, Article 26 of the 2024 Law on Health Insurance stipulates: Health insurance participants have the right to change the initial health insurance medical examination and treatment facility within the first 15 days of each quarter.

3.4.5. Time limit for issuing and returning health insurance cards

According to Clause 2, Article 17 of the Law on Health Insurance 2024: Within 05 working days from the date of receiving a complete application as prescribed, the social insurance agency must issue a health insurance card to the health insurance participant and notify or deliver the card to the agency or organization that manages and makes a list of subjects.

According to Clause 3, Article 39 of the 2024 Law on Health Insurance: Organizations and individuals paying health insurance are responsible for delivering the card or notifying the health insurance card issuance result to the health insurance participant within 03 working days from the date of receiving the card or receiving the notice of the health insurance card issuance result from the social insurance agency.

4. Duties of units under Vietnam Social Security

4.1. Participant Collection and Development Management Board

– Training and implementing new regulations of the Law on Social Insurance and Health Insurance in 2024.

- Summarize difficulties and problems of local Social Insurance in implementation, propose solutions.

- Monitor, urge and inspect the implementation at local Social Insurance.

4.2. Propaganda and Participant Support Department

- Organize propaganda, consultation, and answers to new contents of the Law on Social Insurance and Health Insurance in 2024 regularly and continuously; at the same time, strengthen guidance for Social Insurance agencies in regions to flexibly deploy propaganda forms, suitable for each target group and actual conditions in the locality.

– Create short, memorable, and easy-to-understand videos for promotion and implementation.

– Promote communication on electronic media and social platforms (Facebook, Zalo, ...).

– Monitor and grasp information on mass media, the Internet and public opinion, participants of social insurance, health insurance, unemployment insurance, advise the leaders of Vietnam Social Security on information handling plans when necessary.

Requesting Heads of units and Directors of Social Insurance of regions to organize implementation. During the implementation process, if there are any problems, promptly report to Vietnam Social Insurance for consideration and resolution./.

APPENDIX

LIST OF SUBJECTS, CONTRIBUTION LEVELS, CONTRIBUTION RESPONSIBILITIES, SUPPORT LEVELS AND PAYMENT METHODS

[1] Subject to compulsory social insurance, compulsory occupational accident and occupational disease insurance according to the provisions of Decree No. 72/2020/ND-CP dated June 30, 6 of the Government detailing a number of articles of the Law on Militia and Self-Defense Forces on force organization and building and regimes and policies for Militia and Self-Defense Forces.

[2] The current reference level is equal to the basic salary.

[3] According to the draft Decree detailing and guiding the implementation of a number of articles of the Law on Social Insurance on compulsory social insurance, (i) Business household owners of business households with business registration paying tax according to the declaration method are subject to compulsory social insurance from July 01, 7 and (ii) Business household owners of other registered business households are subject to compulsory social insurance from July 2025, 01.

[4] Clause 13, Article 141 of the Law on Social Insurance 2024.