Guide to participating in Social Insurance, Health Insurance, and Unemployment Insurance

This is the content of Notice No. 1155/BHXH-PT, dated October 8, 2009, from the Social Insurance of Hanoi City regarding the supplementary declaration of unemployment insurance contributions and the implementation of some new regulations on the collection of social insurance, health insurance, and unemployment insurance..

Based on the guidance of the Vietnam Social Security on the collection of social insurance, health insurance, and unemployment insurance (BHXH, BHYT, BHTN) as stipulated in the Social Insurance Law and the Health Insurance Law, the Hanoi City Social Security announces that employers in the area should declare additional unemployment insurance contributions and implement some new regulations on the collection of BHXH, BHYT, and BHTN from October 2009, specifically as follows:

I/ Supplementary declaration of unemployment insurance contributions due.

1. In October 2009, employers shall supplement the list of employees eligible for unemployment insurance from January 2009 to October 2009 using the form and instructions attached to this notice. Units eligible to declare participation in unemployment insurance include all units that have participated in social insurance and meet the following two conditions:

1.1. Units that employ 10 or more workers.

The number of employees employed by the unit, as calculated according to this regulation, includes managerial positions, employees who are not covered by labor contracts or service contracts (if any) but receive salaries or wages from the unit, and employees working at the unit under indefinite labor contracts or service contracts with a term of 3 months or more.

In cases where an organization employs 10 or more workers after January 2009, it must declare and pay unemployment insurance contributions starting from the month following the month in which the organization employs 10 or more workers.

If an organization has already participated in unemployment insurance but subsequently employs fewer than 10 workers, it must continue paying unemployment insurance contributions for the remaining employees until the end of the fiscal year.

Units and branches that independently participate in social insurance and employ fewer than 10 workers, if their parent units are already eligible to participate in unemployment insurance, then these units and branches are also required to declare and contribute to unemployment insurance.

1.2. The employing unit has workers who are eligible to participate in unemployment insurance.

The subjects required to participate in compulsory unemployment insurance include: employees working under indefinite or fixed-term labor contracts of 12 months or more; managers of enterprises, cooperatives, and business households who do not have labor contracts but receive salaries or wages and have participated in compulsory social insurance; and managers and civil servants recruited to work in state-owned public service units before October 10, 2003.

2. Some notes regarding eligibility and unemployment insurance contribution rates.

- Individuals receiving monthly pensions or unemployment benefits who work under employment contracts at units not subject to unemployment insurance contributions.

- Employees who are participating in unemployment insurance and are sent abroad for work or study by their employer, while still receiving their salary or wages in Vietnam, are still eligible to participate in unemployment insurance.

- If an employee is simultaneously eligible for unemployment insurance at multiple companies, they should participate in unemployment insurance at the company where they are currently participating in social insurance.

- Employees who take time off due to illness, maternity, or unpaid leave as prescribed by law and do not participate in social insurance will also not participate in unemployment insurance.

- Officials and employees recruited to work in state-owned public service units before October 10, 2003 are eligible to participate in unemployment insurance (including officials holding leadership positions in public service units).

- The unemployment insurance contribution rate, which is the responsibility of both the employer and the employee, is 2% of the salary or wage used as the basis for unemployment insurance contributions. (Employer contributes 1%, employee contributes 1%)

- The salary or wage level used as the basis for unemployment insurance contributions is the same as the salary or wage level used as the basis for social insurance contributions.

3. Method for filing supplementary unemployment insurance claims

3.1. For state agencies (units within the administrative system from the central to district level, People's Committees of communes, wards, and towns); political organizations; socio-political organizations, socio-political-professional organizations from the central to district level and units with fewer than 10 employees participating in social insurance (as of September 2009):

Units should proactively review and declare the individuals eligible for unemployment insurance within their unit from January 2009 to the present, in order to supplement the declaration in section V - supplementary unemployment insurance in form 03a-TBH October 2009 attached.

3.2. For other entities participating in social insurance, health insurance, and unemployment insurance, including businesses of all economic sectors, public and private non-profit organizations, cooperatives, etc., that employ 10 or more workers.

After printing the September 2009 collection results notice, the Social Insurance agency, according to its management hierarchy, will copy the data file using form 03a – TBH and send it to the units to support the review of the unemployment insurance contributions due from the beginning of the year to October 2009 for all employees who have participated in social insurance. Units should proactively review and re-identify the correct beneficiaries. If any individual is found not to be eligible for unemployment insurance contributions (working under a contract of less than 12 months), their name should be removed from the data file. If the start date for unemployment insurance contributions is incorrect, it should be corrected in the 'From month" for the right time of occurrence.

For example, Mr. Nguyen Van A paid social insurance and health insurance contributions from January 2009 according to a 6-month employment contract. In July 2009, Mr. A signed a 12-month employment contract. The data file calculated Mr. A's unemployment insurance contribution from January 2009; please correct this to July 2009.

Note: Units should only delete the names of individuals not eligible for unemployment insurance according to regulations or correct the start date of unemployment insurance participation as instructed above. Units should not independently modify other data in the data file, as this is the original data declared by the unit for social insurance and health insurance participation. In case of errors, the unit should report the corrections later in the prescribed reports.

After review, the unit will send three copies of the adjusted list, with confirmation as required, to the Social Insurance agency for verification of contributions. Other increases, decreases, and adjustments to Social Insurance, Health Insurance, and Unemployment Insurance from October 2009 onwards will be implemented according to the instructions on the new report forms as stipulated in Section II below.

3.3. For units that have relocated their social insurance participation from January 2009 to the present, the social insurance agency currently managing the collection will require the unit to supplement the unemployment insurance contributions due from January 2009 or as they arise according to regulations until the registration for unemployment insurance at the district/county/town social insurance office. (Correct the start date of unemployment insurance participation in the "from month" column according to each salary level for which social insurance contributions were paid as instructed). The current social insurance agency needs to contact the social insurance agency where the unit is relocating to provide the data file to verify the accuracy of the unit's declaration.

II. Forms for declaring and paying social insurance, health insurance, and unemployment insurance contributions.

Since October 2009, the following forms to be filled out by the unit have been changed.

1. List of employees registered for Social Insurance, Health Insurance, and Unemployment Insurance (Form 02a/TBH).

2. List of adjustments to labor and social insurance, health insurance, and unemployment insurance contributions (Form 03a/TBH)

Employers in the area are requested to contact the tax collection officers who are currently verifying revenue with their units to receive forms and instructions on how to fill them out. Employers can also access the following address directly:http://bhxhhn.com.vnTo access and utilize the new forms as prescribed by the Vietnam Social Security.

III. Other regulations effective from October 2009

1. The salary and wage level used as the basis for health insurance contributions shall be unified with the salary level used as the basis for social insurance and unemployment insurance contributions (excluding regional allowances and not exceeding 20 times the general minimum wage).

2. Employees on maternity leave or leave for adoption as stipulated in the Social Insurance Law and the Health Insurance Law are not required to pay health insurance contributions, but this period is counted as time during which they paid health insurance contributions.

3. Starting in October 2009, the Hanoi City Social Insurance agency will verify and notify collection results using the new prescribed form, fully updating information on social insurance, health insurance, and unemployment insurance of the unit. The amount collected during the period will be allocated in the following order: health insurance, unemployment insurance, late payment interest, and social insurance. Units that are 30 days or more late in paying social insurance, health insurance, and unemployment insurance must calculate late payment interest according to the guidelines of the Vietnam Social Insurance. The Social Insurance agency will process the social insurance, health insurance, and unemployment insurance benefits of employees according to the deducted contributions of the unit. Units with outstanding social insurance, health insurance, and unemployment insurance contributions will not be allowed to process applications for social insurance and unemployment insurance benefits, or issue new or renew health insurance cards for individuals related to the period when the unit has not paid social insurance, health insurance, and unemployment insurance. These entities that owe social insurance, health insurance, and unemployment insurance contributions, in addition to having to make retroactive payments, are also responsible for reimbursing employees if any social insurance, health insurance, or unemployment insurance benefits arise, in accordance with the regulations of the Vietnam Social Insurance.

The above is some additional information regarding the collection of social insurance, health insurance, and unemployment insurance contributions, effective from October 1, 2009. Social insurance agencies in districts, counties, and towns under their jurisdiction are responsible for distributing and guiding employers to correctly implement the contents of this notice. After October 31, 2009, any unit that fails to submit a supplementary declaration for unemployment insurance will have its unemployment insurance contribution provisionally calculated by the social insurance agency, adding 2% to the total salary of all employees who participated in social insurance in 2009. For cases not eligible for unemployment insurance, the employer will make adjustments to reduce the contribution amount in subsequent reports.