Compulsory insurances administration Vietnam law 2025
Social insurance is an important social security policy of the State and Government of Vietnam to ensure income for participants when their income is reduced or lost due to illness, disease or work accidents. Law No. 41/2024/QH15 Social Insurance regulates the rate, method and duration of compulsory social insurance payment by employers.
1. What is social insurance?
Social insurance is a guarantee to replace or partially compensate employees’ income when they lose or lose income due to illness, maternity, work accidents, occupational diseases, the end of working age or death, on the basis of contributions to the social insurance fund. (According to Clause 1, Article 3, Law on Social Insurance 2014)
In particular, “Insurance is a method of protecting against financial losses. It is a form of risk management, mainly used to insure against accidental risks or losses that may occur. And A society is a group of individuals involved in regular social interaction, or a large social group that shares a common spatial or social territory, often subject to the same political authority and specific cultural expectations. coordination” – According to wikipedia
Thus, Social Insurance is a social security policy organized by the State and guaranteed to be implemented by the Vietnam Social Insurance agency according to the provisions of law. There are 02 forms of participating in social insurance corresponding to 2 types of social insurance:
- Compulsory social insurance.
- Voluntary social insurance.
Regulates the payment rates, methods and deadlines for paying compulsory social insurance by employers
2. What is compulsory social insurance?
Compulsory social insurance is a type of social insurance organized by the State that employees and employers must participate in. (According to Clause 2, Article 3 of the 2014 Law on Social Insurance)
Compulsory insurances administration helps ensure replacement or partial compensation of employees’ income when their income is reduced or lost due to illness, maternity, work accidents, occupational diseases, retirement or death. Subjects required to participate in social insurance include employees working under labor contracts, employers and a number of other subjects as prescribed by law.
Compulsory insurances administration payment is the percentage of monthly salary that employees and employers must pay into the social insurance fund, including component funds such as sickness fund, maternity fund, and social insurance fund. labor accidents, occupational diseases, retirement funds, and death benefits.
Accordingly, by 2024, the total rate of compulsory social insurance contributions to insurance agencies is 32%, of which employees pay 10.5% and employers pay 21.5%. Particularly for businesses operating in industries with high risks of labor accidents and occupational diseases, if they meet the conditions, have a written request and are approved by the Ministry of Labor, War Invalids and Social Affairs, they can contribute to the occupational accident and occupational disease fund at a lower rate of 0.3%.
How to receive social insurance benefits?
3. Compulsory insurances administration
Employees participating in compulsory social insurance will enjoy 05 social insurance benefits including: sickness benefit, maternity benefit, labor accident and occupational disease insurance, retirement and death benefits respectively. with the following benefits:
a) Benefits when sick and ill: Employees are entitled to sickness benefits and will be given leave from work, receive sickness benefits according to treatment time and social insurance payment rate.
b) Benefits during pregnancy and childbirth: Employees are entitled to maternity benefits and will receive maternity leave and maternity benefits according to the provisions of law. If the employee is a man whose wife gives birth, he will also be given time off work to take care of his wife and young children.
c) Benefits in case of labor accidents and occupational diseases: Employees are entitled to benefits for labor accidents and occupational diseases and will receive free medical examination and treatment, first aid, rehabilitation and receive benefits. Labor accidents and occupational diseases according to the level of injury and health deterioration.
d) Benefits when they reach the end of working age or are no longer able to work: Employees are entitled to retirement benefits and will receive a monthly pension or one-time insurance benefit according to the provisions of law.
e) Death benefits: The employee’s heirs and relatives are entitled to death benefits and will receive benefits according to the provisions of law including the following:
- Funeral allowance: paid once to the funeral director when the employee dies, equal to 10 times the base salary in the month in which the employee died.
- Monthly death benefit: paid monthly to the employee’s relatives when they die, equal to a percentage of the employee’s pension or labor accident or occupational disease benefit.
- One-time death benefit: paid once to the employee’s relatives when they die, equal to a percentage of the employee’s voluntary social insurance contributions.
For each benefit when participating in compulsory social insurance, employees need to ensure that they meet all conditions and carry out procedures according to regulations to send to the social insurance agency for resolution. If you have other questions related to compulsory insurances administration, please contact S4B Vietnam.
S4B Vietnam
- Address: Unit 701B-701C, Tower A, Handi Resco, 521 Kim Ma Street, Ba Dinh District, Hanoi, Vietnam
- Tel: + 84 24 3974 4181
- Email: service@s4b.com.vn
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