Instructions for participating in Social Insurance, Health Insurance, Unemployment Insurance

Notice No. 1155/BHXH–PT, dated October 8, 2009, of Hanoi City Social Insurance on additional declaration of social insurance revenue and implementation of some new regulations on social insurance, health insurance, and unemployment insurance collection.

Pursuant to the guidance of Vietnam Social Security on collecting social insurance, health insurance, unemployment insurance (SI, HI, BHTN) according to the provisions of the Social Insurance Law and the Health Insurance Law, Hanoi Social Security informs the local employers to declare additional SI revenue and implement some new regulations on collecting SI, HI, BHTN from October 2009, specifically as follows:

I/ Additional declaration of unemployment insurance receivable.

1. In October 2009, employers shall prepare a supplementary list of employees participating in unemployment insurance from January 2009 to October 2009 according to the form and instructions attached to this notice. Units required to declare participation in unemployment insurance include all units that have participated in social insurance and meet the following 2 conditions:

1.1. Units employing 10 or more employees.

The number of employees employed by the unit calculated according to this regulation includes managerial positions, employees who are not subject to labor contracts or work contracts (if any) but receive salaries and wages at the unit, and the number of employees working at the unit under indefinite labor contracts or work contracts or with a term of 03 months or more.

In case the unit employs 10 or more employees after January 2009, it must declare and pay unemployment insurance from the month following the month in which the unit employs 10 employees.

In case the unit has participated in unemployment insurance but then employs less than 10 employees, it must pay unemployment insurance for the number of employees participating in unemployment insurance until the end of the fiscal year.

Units and branches participating in social insurance independently and employing less than 10 employees, if the managing units are already subject to social insurance participation, these units and branches are also subject to social insurance declaration and payment.

1.2. Units that employ employees subject to social insurance.

Subjects participating in compulsory unemployment insurance include: employees working under indefinite-term labor contracts or labor contracts with a term of 12 months or more; managers of enterprises, cooperatives, business households... who do not perform labor contracts but receive salaries and wages and have participated in compulsory social insurance; managers and civil servants recruited to work in state-owned enterprises before October 10, 2003.

2. Some notes on subjects and levels of social insurance contributions

- People receiving monthly pension and unemployment benefits working under labor contracts at units are not subject to social insurance contributions.

- Employees participating in unemployment insurance who are sent by their units to work or study abroad but still receive salaries and wages in the country are still eligible to participate in unemployment insurance.

- Employees who are subject to unemployment insurance at many units at the same time shall participate in unemployment insurance at the place where they are participating in social insurance.

- Employees who take leave due to illness, maternity, or unpaid leave according to regulations and do not participate in social insurance will also not participate in unemployment insurance.

- Officials and civil servants recruited to work in state-owned enterprises before October 10, 2003 are all eligible to participate in social insurance (including officials holding leadership positions in public enterprises).

- The level of social insurance contribution under the responsibility of the employer and employee is 2% of the salary and wages used as the basis for social insurance contribution. (the employer contributes 1%, the employee contributes 1%).

- The salary and wages used as the basis for paying unemployment insurance are the salaries and wages used as the basis for paying social insurance.

3. Method of additional declaration of social insurance

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

Units proactively review and declare subjects eligible to participate in unemployment insurance at their units from January 2009 to present to declare and supplement in section V - supplement unemployment insurance in form 03a-TBH October 2009 attached.

3.2. For the remaining units participating in social insurance, health insurance, and unemployment insurance, including enterprises of all economic sectors, public and non-public career units, cooperatives... employing 10 or more employees.

After printing the collection result notice for September 2009, the Social Insurance agency, according to the management hierarchy, copies the data file according to form 03a - TBH and sends it to the units to support the review of the amount of social insurance receivable from the beginning of the year to October 2009 of all employees who have participated in social insurance. The units proactively review and re-identify the correct subjects. In case any subject is found not to be subject to social insurance payment (working under a contract of less than 12 months), delete that person's name from the data file. In case the starting time of social insurance payment for unemployment is incorrect, correct it in the column 'From month" for the right time of occurrence.

For example, Mr. Nguyen Van A paid social insurance and health insurance from January 2009 according to the signed labor contract for 6 months. In July 2009, Mr. A signed a 12-month labor contract. In the data file, the amount of social insurance receivable from Mr. A has been calculated from January 2009. The unit is requested to change it to July 2009.

Note: Units only need to delete the names of subjects not eligible to participate in social insurance according to regulations or correct the start date of social insurance participation according to the instructions above. Units do not correct other data in the data file themselves because these are original data that the unit has declared to participate in social insurance and health insurance. In case of detecting errors, the unit will report the adjustment later on the prescribed reports.

After reviewing, the unit shall send the data file with 03 copies of the adjusted list, with confirmation according to regulations for the Social Insurance agency to conduct the collection comparison. Other cases of increase, decrease, and adjustment of Social Insurance, Health Insurance, and Unemployment Insurance from October 2009 onwards shall be implemented according to the instructions on the new reporting forms as prescribed in Section II below.

3.3. For units that have moved their place of participation in social insurance from January 2009 to present, the social insurance agency that is managing the collection requires the unit to supplement the amount of social insurance to be collected from employees from January 2009 or when it arises according to regulations until the time of registration for social insurance participation at the district, county, or town social insurance agency. (correct the time of starting to participate in social insurance in the "from month" column according to each salary level that has paid social insurance as instructed). The social insurance agency that is managing needs to contact the social insurance agency where the unit has moved to provide the data file to check the unit's declaration for accuracy.

II. Form for declaration of social insurance, health insurance and unemployment insurance contributions.

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

1. List of employees registered to participate in social insurance, health insurance, unemployment insurance (form 02a/TBH).

2. List of adjusted employees and social insurance, health insurance, unemployment insurance contribution levels (form 03a/TBH)

It is recommended that local employers contact directly with the tax management officers who are reconciling the tax with the unit to receive the form and instructions on how to declare. Employers can also directly access the address:http://bhxhhn.com.vnto exploit and use new forms according to regulations of Vietnam Social Security.

III. Some other regulations implemented since October 2009

1. The salary and wages used as the basis for collecting health insurance premiums must be consistent with the salary used as the basis for collecting social insurance and unemployment insurance premiums (excluding regional allowances and not exceeding 20 times the general minimum wage).

2. Employees who take time off work to give birth or adopt a child as prescribed by the Law on Social Insurance and the Law on Health Insurance do not have to pay health insurance, but it is counted as a period of health insurance payment.

3. Starting from October 2009, Hanoi Social Insurance will carry out the comparison and notification of collection results according to the new prescribed form, fully updating information on social insurance, health insurance, and unemployment insurance of the unit. The collected amount during the period is allocated in the following order: health insurance, unemployment insurance, late payment interest and social insurance. Units that pay late social insurance, health insurance, and unemployment insurance for 30 days or more must calculate late payment interest in accordance with the instructions of Vietnam Social Insurance. The Social Insurance agency will handle the settlement of social insurance, health insurance, and unemployment insurance benefits of employees in accordance with the results of the deduction of social insurance, health insurance, and unemployment insurance of the unit. Units that owe social insurance, health insurance, and unemployment insurance will not be allowed to receive applications for settlement of social insurance, unemployment insurance regimes, issue new or extend health insurance cards of subjects related to the time the unit has not paid social insurance, health insurance, and unemployment insurance. Units that owe social insurance, health insurance, and unemployment insurance, in addition to having to make arrears, must also be responsible for compensating employees if there are any social insurance, health insurance, and unemployment insurance benefits arising in accordance with the regulations of Vietnam Social Security.

The above are some additional contents on the collection of social insurance, health insurance, and unemployment insurance, which will be implemented from October 1, 2009. Social insurance agencies of districts, towns, and cities under their management are responsible for copying and guiding employers to properly implement the contents stated in this notice. After October 31, 2009, for any employer that does not make a supplementary declaration of unemployment insurance, the Social Insurance agency will temporarily calculate the total number of employees who participated in social insurance in 2009, adding 2% of their salary to collect additional unemployment insurance. In cases where the employer is not eligible to participate in unemployment insurance, the employer will make a downward adjustment to the report in the following periods.