29 March, 2016
According to Official Letter No. 212/BHXH-QLT dated January 19, 2016 of HCM City’s Social Insurance Agency:
In 2016, the compulsory Social, Health, Unemployment Insurance (SHUI) contribution rate is 32.5%, in which:
- The Employer contributes 22% (including 18% for Social, 3% for Health, 1% for Unemployment Insurance)
- The Employee contributes 10.5% (including 8% for Social, 1.5% for Health, 1% for Unemployment Insurance)
However, since January 1st 2016 onwards, the Employer is not allowed to retain 2% of the total insurance contribution for the payments of social insurance entitlement cases (i.e. sickness, maternity, convalescence, …) to the Employee as before. Instead, the Social Insurance Agency will pay directly to the Employee after the Employer submits all the required documents.
In the case that the Employee has more than one labour agreements with different Employers simultaneously, the contribution of the Social and Unemployment Insurance will be based on the first signed contract. Nevertheless, Health Insurance will be based on the contract with the highest salary.
During the leave period as regulated by Law, if the Employee continues receiving salary from the Employer then both parties must pay SHUI based on such payment that the Employee receives during the leave period.
Management responsibility of the Social Insurance Book:
From February 1st 2016, the issuance of Social Insurance Book includes the print of a cover page and a separate page complying with the new form of the Social Insurance Book regulated by Decision No. 1035/QD- BHXH dated October 1st 2015 issued by the Head of Vietnam’s Social Insurance Agency. The Employee is responsible for keeping the Insurance Book pursuant to the 2014 Law on Social Insurance. After receiving the separate page confirming the insurance payment periods up to 2015 from the Social Insurance Agency, the Employer must handover the Social Insurance Book (including the cover page and the separate page, or the book and the separate page) to the Employee.
