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Social insurance increase declaration in Vietnam

In addition to social insurance declaration services, social insurance first-time declaration for enterprises, and representative offices of foreign-invested companies, Viet An Law supports enterprises with procedures for declaring an increase in social insurance for employees. Clients can refer to the procedures and information summarized in the specific article as follows:

Social insurance increase declaration in Vietnam

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    Overview of social insurance increase declaration in Vietnam

    Information Contents
    Legal basis –       Law on Social Insurance 2014;

    –       Decree No. 146/2018/ND-CP detailing and guiding on measures to implement certain articles of Law on Health Insurance;

    –       Decision No. 595/QD-BHXH dated April 14th, 2017, as amended by Decision No. 505/QD-BHXH dated March 27th, 2020;

    –       Decision No. 1040/QD-BHXH dated August 18th, 2020 of the Viet Nam Social Security.

    Deadline for implementing Within 30 days from the date of signing the labor contract, working contract or recruitment, the employer must submit the dossier to the Social Security Agency.
    Required documents –       A list of employees who participate in the social insurance;

    –       Labor contract;

    –       Social insurance book code (if any);

    –       Family record book (In case the first-time participants in social insurance and not have the family code);

    –       Citizen ID card/ Passport of the new employee.

    Forms of declaration ·      Report the employee usage and participationg in the Social Insurance (SI), Health Insurance (HI), and Unemployment Insurance (UI) (Form D02-LT – Issued in Decision No. 1040/QD-BHXH dated August 18th, 2020 of the Viet Nam Social Security);

    ·      A participating and amending declaration about the information of the social insurance, health insurance (Form TK1-TS – Issued in Decision No. 505/QD-BHXH dated March 20th, 2020 of the Viet Nam Social Security, as amended in Section III Appendix V enclosed with Decision No. 490/QD-BHXH dated March 28th, 2020);

    ·      The information declaration table (Form D01-TS – Issued in Decision No. 505/QD-BHXH).

    The receiving agency The Social Security Agency of the province in which the enterprise’s headquarters.
    Applying methods

     

    ·      In case companies report the first increase, not have the unit code: The dossier must be submitted directly to the Social Security Agency (not submitted online).

    ·      In case companies report an increase, have the unit code: Submit the dossier by online via the electronic signature.

    Time limt for completing Within 05 working days, the applicant will receive the result.
    Results In case the new registration: The social insurance book and new health insurance card.

    In case an employee who has participated in social insurance and already has a social insurance book: the new health insurance card (each employee is only granted a social insurance book).

    In case a book gets lost, it is necessary to submit the dossier for re-issuance of a social insurance book.

    Obligation for social insurance increase declaration

    Pursuant in Clause 1 Article 98 of Law on Social Insurance 2014: “Employers shall notify in writing social insurance agencies of any changes in the information of participation in social insurance”. Cases must be performed procedures for the social insurance increase declaration, as follows:

    The enterprise and the employee signed the labor contract

    • Increase of the new due to not having a book: This is the option for the first time if an employee has not yet registered. There are no social insurance books different than those with social insurance codes. Employees who have a social insurance code but have not submitted social insurance contributions in any unit must submit a request for re-issuance when the increase is announced. If an employee has a social insurance book but is lost, it can only be increased according to the social insurance code without a request for re-issuance a new book. After completing the increase declaration, they will perform procedures for the re-issuance of a new book.
    • Increase of the new labor contract from 1 month to less than 03 months: This is the option for the case of employees participating in the social insurance according to the labor contract with a duration from 1 month to less than 3 months, following the provisions of clause 1 Article 2 Law on Social Insurance 2014.
    • Increase due to the transfer and had a book, moving from another province to: This is the option to choose when an employee has joined the social insurance and already has a social insurance book, now come to work at the company but are from other provinces moving to.
    • Increase due to coming and having a book, moving in a province: Similar to the above case but moving in a province.

    Employees go back to work after leaving due to illness, accident, or maternity.

    • Increase due to illness but returned to work: This method applies to cases where the unit has previously a reduction in the illness of the employee (common illness, long-term illness, illness child), and then, the employee has gone back to work.
    • Increase due to the maternity leave but returned to work: This method applies to cases where the unit has previously had a reduction in maternity personnel (pregnancy leave, abortion, sucking, childbirth), and then, the employee has to go back to work.

    Employees leave for 14 days or more without pay but return to work

    • Increase due to the unpaid leave but returned to work: This method applies to cases where the unit has previously had a reduction in unpaid leave, and then, the employee has gone back to work.
    • Increase due to addition: This method applies to cases of errors in the employee increase reporting unit.

    Other cases

    • Paid at the basic salary at the time prescribed by the social insurance.
    • Increase in health insurance: applies to employees who only participate in health insurance or declare an increase in health insurance due to late notification of labor reduction or change in salary as the basis for payment.
    • Increase in unemployment insurance: applies to cases of payment of unemployment insurance due to shortage, non-payment, or change in salary as the basis for payment.
    • Increase occupational accident or disease insurance: This applies to cases of multiple employees at the same time with multiple enterprises or due to changes in salary as the basis for payment. In that case, the employee that has a labor contract with the enterprise must have the occupational accident or disease insurance payment for each enterprise.

    Notes when the social insurance increase declaration

    Rates of Social Insurance contributions

    Rates of compulsory Social Insurance contributions shall be based on the provisions of Article 5 issued in Decision No. 595/QD-BHXH dated April 14th, 2017, as amended by Decision No. 505/QD-BHXH dated March 27th, 2020; Clause 1 Article 57 of Law on Employment 2013; Clause 1 Article 7 of Decree No. 146/2018/ND-CP, as follows:

    • SI: Social Insurance
    • UI: Unemployment Insurance
    • HI: Health Insurance
    • R-SA: Retirement or survivorship allowance benefit
    • IB-MB: Illness or maternity benefit
    • OA-OD: Occupational accident or disease benefit
      Employer Employee
    SI UI HI SI UI HI
    P-SA IB-MB OA-OD P-SA IB-MB OA-OD
    Vietnamese 14% 3% 0.5% 1% 3% 8% 1% 1.5%
    Total 21,5% 10,5%
    Foreigner 14% 3% 0.5% 3% 8% 1.5%
    Total 20,5% 9,5%

    Thus, the monthly compulsory social insurance contribution amounts for Vietnamese is equal to 32% of their social insurance monthly salary. For foreigners, the compulsory monthly social insurance contribution amounts are equal to 30% of their social insurance monthly salary.

    The current regulation increased by 0.5 percentage points compared to the stage from July 1st, 2021 to the end of June 30th, 2022 under Resolution No. 68/NQ-CP of July 1st, 2021 regulating by the Government to support social insurance amounts for payers during the Covid-19 epidemic.

    Penalties for failure to declare the increase

    Suppose the enterprise delays reporting the employee increase. In that case, it will lead to delayed and/or shortage of payment for employees and must carry out procedures for recovery of social insurance for employees. It will be penalized by the provisions of the Law on Social Insurance.

    Responsible after declaring an increase

    After the enterprise has successfully declared the increase for employees, it should pay the social insurance amounts in that month so that the Social Security Agency can print the social insurance book and the health insurance card for employees in time.

    Social insurance increase declaration service in Vietnam of Viet An Law

    • Legal consulting on issues related to the social insurance increase declaration procedure;
    • Consulting on issues that arise from the labor relative in an enterprise;
    • Consulting on the procedure for performing obligations about the social insurance increase declaration for employees;
    • Guiding clients with the dossier and documents related to the procedure for declaring an increase in social insurance;
    • On behalf of enterprises to perform submitting the dossier of register the social insurance in competent management agency;
    • Consulting on other regulations of law related to costs when participating in the social insurance of employees in enterprises;
    • Providing related services such as Procedures for maternity, and illness; procedures for declaring employee reduction; procedures for adjusting rates of social insurance contributions;…

    Clients who need to use social insurance increase declaration service in Vietnam, please contact Viet An Law Firm for consultation and support to implement procedures in a timely, fast, and accurate way!

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