Công văn 4064/BHXH-THU

To: Employers in Ho Chi Minh City

From January 01, 2015, policies on collection of social insurance, health insurance, and unemployment insurance contributions are changed when the Law on amendments to the Law on Health insurance (Law No. 46/2014/QH13 dated June 13, 2014); the Law on Employment (Law No. 38/2013/QH13 dated November 16, 2013) come into force.

While pending instructions of competent authorities, Social Security of Ho Chi Minh City hereby provides guidance as follows:

1/ Buyers of compulsory social insurance, health insurance, and unemployment insurance:

- From January 01, 2015, any worker that has been worked under a employment contract from 03 months in an organization (regardless of the number of workers employed) has to obtain compulsory social insurance, health insurance, and unemployment insurance as prescribed in Article 2 of the Law on Social insurance (Law no. 71/2006/QH11 dated June 29, 2006); Article 43 of the Law on Employment (Law No. 38/2013/QH13) and Clause 6 Article 1 of the Law on Amendments to the Law on Health insurance (the Law no. 46/2014/QH13).

If a person who has not had unemployment insurance is employed under an employment contract that lasts for 03 months or more before January 2015 and such employment contract is unexpired in 2015 (the person keeps working from January 2015), the employer must follow procedures to buy unemployment insurance for such person from January 2015.

- The Law on Social insurance (Law No. 71/2006/QH11) shall apply to workers who only have compulsory social insurance; the Law on Health insurance (Law no. 46/2014/QH13) shall apply to those who only have health insurance.

- From January 01, because health insurance payout has been adjusted according to the Law on Amendments to the Law on Health insurance, employers shall request their employees being meritorious people, former resistance participants, war veterans, relatives of meritorious people whose benefits are not determined to submit certificates in order to adjust their health insurance cards and determine their benefits, ensuring that a person eligible for various types of health insurance prescribed in Article 12 of the Law on Health insurance (amended in Law No. 46/2014/QH13) shall pay health insurance contributions of the first type in the order of priority and receive the most advantageous benefits.

2/ Social insurance, health insurance, unemployment insurance contribution ratio:

From January 01, 2015, each employer shall social insurance, health insurance, and unemployment insurance contributions from each employee’s salary at 32.5%, including:

22% is paid by the employer (18% social insurance, 3% health insurance, 1% unemployment insurance).

10.5% is paid by the employee (8% social insurance, 1.5% health insurance, 1% unemployment insurance).

3/ Salary serving as the basis for payment of social insurance, health insurance, unemployment insurance contributions:

3.1- With regard to employees applying state pay regime, the basis for paying social insurance, health insurance, unemployment insurance contributions is the salary factor according to their ranks, titles, allowances, seniority pay based on the base salary levels prescribed by the government.

The minimum monthly salary to calculate social insurance, health insurance, and unemployment insurance contributions is the base salary; the minimum monthly salary to calculate social insurance, health insurance, and unemployment insurance contributions is 20 times the base salary.

3.2 - With regard to employees applying their employers’ salary regulations, the basis for paying social insurance, health insurance, unemployment insurance contributions is the monthly salary written in their employment contracts.

The minimum monthly salary to calculate social insurance contributions is the minimum region-based salary; the minimum monthly salary to calculate social insurance contributions is 20 times the base salary.

The maximum monthly salary to calculate health insurance contributions is 20 times the base salary.

The minimum monthly salary to calculate unemployment insurance contributions is the minimum region-based salary; the maximum monthly salary to calculate unemployment insurance contributions is 20 times the region-based salary.

4/ Notes:

- The employees spending their maternity leave according to regulations of law on social insurance, a monthly contribution of 4.5 of their monthly salary before the maternity leave shall be paid by the social insurance authority.

- The employees spending their sick leave for 14 days in the month according to regulations of law on social insurance shall enjoy benefits of health insurance without having to pay health insurance.

- If the employee is detained or suspended from worked to serve police investigation, the monthly contribution shall be 4.5% of 50% of his/her monthly salary.  If the competent authority concludes that no violation of law is committed, the employee shall pay health insurance according to the salary he/she receives.

- The employee is not required to pay health insurance during the period of overseas business trip or overseas study; such period is included in the health insurance period until his/her employer issues a decision on work resumption.

- The employee is not required to pay health insurance while working overseas; If health insurance is obtained within 60 days from the date of entry into Vietnam, the period of overseas and the period between the date of entry and date of obtaining insurance shall be included in the health insurance period.

If a person does not have health insurance over the period of following procedures for receiving unemployment benefits according to the Law on Employment, such period shall be included in health insurance period.

- Employers that fail to fulfill their obligations to pay health insurance shall be compelled to pay the outstanding amount and an interest on the outstanding amount at a rate that is twice as high as the interbank interest rate, and reimburse the employees for the costs covered by health insurance they paid before having the health insurance cards.

5/ Verification of identity before making a health insurance book

Social Security of Ho Chi Minh City has issued Official Dispatch No. 3558/BHXH-THU dated November 13, 2014 requesting employers to compare the employees’ dossiers against their ID cards when registering new social insurance, health insurance, unemployment insurance policyholders in order to eliminate the ID papers that are borrowed to apply for jobs and social insurance.

From January 01, 2015, any person that deliberately borrows other people’s ID papers to apply for jobs and register social insurance, health insurance, unemployment insurance shall have his/her benefits stripped of. Social Security of Ho Chi Minh City is not responsible for adjusting the personal information of such person.

6/Implementation:

Social Security of Ho Chi Minh City hereby requests that all organizations:

- Complete the procedures and pay social insurance, health insurance, unemployment insurance in 2014 for their employees by December 30, 2014.

- Carry out a review according to this document, provide additional information about unemployment insurance policyholders, health insurance benefits in order to ensure conformity with law and social insurance, health insurance, unemployment insurance benefits of employees from January 2015.