THE CHANGE IN THE LAW ON SOCIAL INSURANCE POLICY SINCE 01/01/2018

The Law on Social Insurance 2014 takes effect from 01/01/2016; However, many of the important provisions until January 1, 2018 officially came into force. Here, KIM HUC synthesis for you easy to follow:

1. Two more subjects must participate in compulsory social insurance

From 01/01/2018, besides those who pay compulsory social insurance in accordance with the current regulations, the following two subjects must also participate, specifically:

Persons working under labor contracts with a term ranging from one month to less than three months;

– Foreign laborers who are working in Vietnam and who have work permits or practice certificates or practicing certificates granted by competent Vietnamese agencies may participate in compulsory social insurance under the provisions of Goverment.

(Based on Clause 1, Article 124 of the Law on Social Insurance, 2014)

2. Supplementation of many incomes for compulsory social insurance payment

The current:

Compulsory social insurance contribution = Salary + Salary allowance

From 01/01/2018:

Compulsory salary for compulsory social insurance = Salary + Salary allowance + Additional allowances

In which: Amount must specify the specific amount of money along with the salary agreed in the labor contract and pay regularly in each pay period (According to Clause 2, Article 30 of Circular No. 59/2015/TT-BLDTBXH).

“Article 30.- The monthly salaries on which compulsory social insurance premiums are based

Monthly salary on which social insurance premiums are paid to laborers who pay social insurance premiums according to the wage regime decided by the employers shall be as follows:

…

2. From January 1, 2018 onwards, the monthly salaries on which social insurance premiums are based shall be the salaries and salary allowances specified in Clause 1 of this Article and other supplements according to the provisions at Point a, Clause 3 of Article 4 of Circular No. 47/2015 / TT-BLDTBXH. “

3. Fine up to 07 years of imprisonment with the obligor but not paying social insurance to the employee

In order to limit the state of arrears and evade compulsory social insurance for employees, the Penal Code 2015 has supplemented the crime related to the aforementioned acts, specifically as follows:

“Article 216. Legally paying social insurance premiums, health insurance and unemployment insurance premiums for laborers

1.Those who have the obligation to pay social insurance, health insurance and unemployment insurance premiums for laborers who commit fraud or other tricks for failing to pay or fail to fully pay the prescribed sum of money for 6 months or more In one of the following circumstances, if they have already been administratively sanctioned for such acts but still commit violations, they shall be subject to a fine of between VND 50,000,000 and 200,000,000 and non-custodial reform for up to one year. or imprisonment from 3 months to 1 year:

a) Evading insurance premiums of between VND 50,000,000 and under 300,000,000;

b) To deduct insurance premiums for between 10 and under 50 laborers.

2. Committing the crime in one of the following circumstances, the offender shall be subject to a fine of between VND 200,000,000 and 500,000,000, or a prison term of between six months and three years:

a) Committing crime twice or more;

b) Evolving insurance premiums of between VND 300,000,000 and under VND 1,000,000,000;

c) Evading insurance premiums for between 50 and under 200 persons

d) Failing to pay the sum of insurance money already collected or withheld by the laborers defined at Point a or b, Clause 1 of this Article

3. Committing the crime in one of the following circumstances, the offender shall be subject to a fine of between VND 500,000,000 and 1,000,000,000 or sentenced to between two and seven years of imprisonment:

a) Evading insurance premiums of 1,000,000,000 VND or more;

b) Evading insurance premiums for 200 or more people;

c) Failure to pay the insured sums already collected or withheld by the laborers specified at Point b or c, Clause 2 of this Article.”

As of January 1, 2015 (date of the Penal Code 2015), anyone who has the obligation not to pay social insurance for employees will be able to stay in prison for up to 07 years.

4. Increase the number of years to pay social insurance to enjoy the maximum pension

According to the provisions of the Law on Social Insurance, the maximum pensionable rate is 75% of the monthly salary for social insurance contribution.

Below is a comparison of regulations on the number of employees who are required to pay social insurance premiums in order to enjoy the above pension based on the provisions in Clauses 1 and 2 of Article 56 of the Law on Social Insurance.

	The current	From 01/01/2018
Female workers	From 25 years of paying social insurance	From 30 years of paying social insurance
Male workers	Full 30 years of social insurance	From full 31 years of social insurance (if you retire in 2018)
		From full 32 years of social insurance (if you retire in 2019)
		Full 33 years of social insurance (if you retire by 2020)
		From 34 years of paying social insurance (if you retire in 2021)
		From the full 35 years of social insurance (if retiring from 2022 onwards)