First-time social insurance service in Vietnam

Social insurance is a guarantee to replace or offset part of an employee’s income when they have their income reduced or lost due to illness, maternity, occupational accident, occupational disease, expiration of working age or death, on the basis of contribution to the social insurance fund.  Insurance is a method of protection against financial losses. It is a form of risk management, which is mainly used to insure against accidental risks or possible losses. And a society is a group of individuals involved in regular social interaction, or a large group of societies that share a common spatial or social territory, often subject to the same political authority and dominant cultural expectations. The procedures for making social insurance, health insurance, and unemployment insurance are quite complicated, which has caused difficulties for many businesses.  However, don’t worry too much when you have the first social insurance service for your business of Viet An Tax Agent. In this article, Viet An Tax Agent will provide you with useful information about regulations and procedures for participating in social insurance for the first time.

Subjects participating in compulsory social insurance, health insurance, unemployment insurance

• Individuals working under Labor Contracts (or work contracts): Indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for a specific job with a term of 3 months or more but less than 12 months;
• Managers of enterprises, managers operating cooperatives who receive salaries;
• Units that hire, employ labor under labor contracts;

According to the provisions of Article 99 of the Law on Social Insurance 2014, within 30 days from the time the employee and the enterprise sign the labor contract, the employer needs to transfer the dossier to the Social Insurance agency.

Procedures for participating in social insurance for the first time for enterprises and employees

Dossier of registration for participation in social insurance for the first time for employees

According to the provisions of Decision 595/QD-BHXH, when registering for social insurance, employees need to prepare all the following types of documents:

• Declaration of participation in social insurance, adjustment of social insurance information (According to form TK1 – TS).
• In case the employee is entitled to higher health insurance benefits, it is necessary to supplement additional documents to enjoy the benefits.
• Employees working abroad need to have a labor contract with a term abroad or an extended labor contract. At the same time, the employee needs to attach a contract extension document or a newly signed contract in the country receiving the labor.

First-time social insurance registration dossier for units

When making a dossier of registration for participation in social insurance for the first time for employees, the unit needs to prepare:

• Declaration of social insurance participation/adjustment of information according to form TK3 – TS
• Detailed list of employees registering to participate in social insurance, health insurance, unemployment insurance, occupational accident – occupational disease insurance (according to form D02 – TS)
• Information list (according to form D01-TS)

During the declaration process, enterprises should note:

• Form TK3-TS applies to enterprises that need to register for the issuance of unit codes for the first time participating in social insurance.
• Form D02 – TS is used to declare the list of employees participating in social insurance. These are employees who are eligible according to mandatory regulations. Form D02 – TS is extremely important and mandatory in the procedure for registering to participate in social insurance for the first time for enterprises.
• The TK1-TS form applies to employees who do not have a social insurance code.
• Form D01-TS is used to synthesize all types of documents and papers of the enterprise, which is used as a basis for the insurance agency to collect arrears in cases of late declaration.

In addition to the above-mentioned declarations and lists, enterprises need to attach:

• Labor contracts signed with employees
• Household registration book, identity card/citizen identity card of the employee.

Steps to carry out procedures for participating in social insurance for the first time

The procedure for participating in social insurance for the first time includes the following steps:

The enterprise will submit the dossier at the district-level social insurance agency where the enterprise is located. The determination of the social insurance agency to receive the dossier will depend on the business registration license.

Forms of application

Enterprises can submit paper or electronic documents when carrying out procedures for participating in social insurance for the first time:

• For paper dossiers: submit via postal service of the social insurance agency. Businesses only need to register an account according to regulations and the application will be completely free.
• For electronic transactions: Enterprises use electronic social insurance declaration software of I-van units such as EFY Vietnam. Units only need to have a digital signature and a declaration account, and submitting documents will be extremely simple and easy.

Social insurance premium rates and rates

The current normal social insurance payment rate is 32%, of which enterprises pay 21.5% for employees and employees must pay 10.5%.

• Social insurance payment amount = 32% x Salary on which social insurance premiums are based;
• The salary on which social insurance premiums are based > or = The regional minimum wage;
• The salary on which social insurance premiums are paid = salary + allowances + other additional amounts as prescribed.

The monthly salary on which compulsory social insurance premiums are based must not be lower than the regional minimum wage at the time of payment for employees doing the simplest jobs or titles under normal working conditions.

Notes that businesses need to know when registering for social insurance for the first time

Enterprises must carry out procedures for registration for social insurance for the first time within 30 days from the date the enterprise signs a labor contract/working contract or recruitment contract with the employee.

Each enterprise, when registering for social insurance for the first time for its enterprise at the administrative establishment at the district, district or city level, will be issued a unit code so that the social insurance management agency in that place will monitor it separately.

When changing the address in another district or province, the enterprise must report the reduction of employees and close the social insurance book for employees. And when passing through a new district, district or province, the enterprise must register for a new social insurance unit code and submit the social insurance dossier for the first time. Except for some enterprises with a management agency that is a provincial and centrally run city social insurance, when they change provinces, they will redo the dossier, and in the province or in the city, there is no need.

After the enterprise announces the increase in labor, for employees who already have a social insurance book, they will only be issued a guarantee card.

health insurance, and if the social insurance book is lost, it is necessary to make an additional application for re-issuance of the book, then the dossier for reporting the increase will be approved.

If you have any difficulties or questions related to social insurance services for the first time, please contact Viet An Tax Agent for the most specific advice.