Enterprises and employees working under labor contracts must participate in compulsory social insurance as prescribed by law
Legal grounds:
- Social insurance law;
- Law on Health insurance;
- Employment Law;
- Decree No. 12/2022/ND-CP.
We get the following questions:
My company wants to take back an old employee. But this person has settled abroad and does software design, so it’s all online. Working online full-time, do my company has to pay social insurance? do employee want to not have to pay social insurance?
Pursuant to Clause 1, Article 2 of the Law on Social Insurance; Clause 1, Article 12, Article 49 of the Law on Health Insurance; Clause 1, Article 43 of the Employment Law:
- Employees working under labor contracts with a term of full 1 month or more are subject to participation in compulsory social insurance;
- Persons working under labor contracts with a term of full 3 months or more are eligible to participate in health insurance and unemployment insurance.
In addition, based on Clause 1, Article 39 of Decree No. 12/2022/ND-CP, employees will be administratively sanctioned from 500,000 VND to 1,000,000 VND if they have agreed with the employer in order to:
- Not participating in compulsory social insurance and unemployment insurance;
- Participating in the wrong audience or participating in the wrong level.
According to the above provisions:
- Employees who work online full-time may still be subject to compulsory social insurance if they sign a labor contract with a term of 01 month or more.
- Employees and businesses cannot agree not to pay compulsory social insurance.
