Tiếng Việt
中文 (中国)
Currently, due to the needs and nature of work, there are many cases where employees enter into many labor contracts with many different employers. However, when this case happens, both the employee and the employer are confused about how to participate in the compulsory social insurance system. What are the regulations on social insurance contributions if the employees enter at least 2 labor contracts at the same time? Can employees pay social insurance contributions at 2 companies at the same time in Vietnam?
There are many cases where the lack of understanding of the legal provisions on participating in insurance for employees with many labor contracts leads to overlapping insurance coverage between companies.
Legal basis
However, the Labor Law of Vietnam has clearly stated the regulations for the case in which the employee participates in 2 different labor contracts.
Specifically, Article 2, Law on Social Insurance 2014 stipulates:
“1. Employees being Vietnamese citizens shall be covered by compulsory social insurance, including:
a/ Persons working under indefinite-term labour contracts, definite-term labour contracts, seasonal labour contracts, or contracts for given jobs with a term of between full 3 months and under 12 months, including also labour contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labour law;
b/ Persons working under labor contracts with a term of between full 1 month and under 3 months;”
In addition, Clause 1, Article 42, Decision 595/QD-BHXH promulgates the process of accumulating social insurance, health insurance, unemployment insurance, occupational accident, and occupational disease insurance; management of social insurance books and health insurance cards prescribed:
“An employee who simultaneously has 02 or more labor contracts with many different units shall pay social insurance and unemployment insurance according to the first signed labor contract, pay health insurance according to the labor contract with the highest salary, pay occupational accident and occupational disease insurance according to each labor contract.”
How to pay social insurance contributions in Vietnam?
According to the above legal bases, if the employee participates in 2 labor contracts at the same time, he/she will pay social insurance and unemployment insurance according to the first signed labor contract.
Regarding health insurance, it will be paid according to the labor contract with the highest salary.
The occupational accident and occupational disease insurance will be paid according to each labor contract.
In conclusion, working simultaneously for 2 different companies at the same time has many problems. Accordingly, ASL LAW recommends that the employee only participates in 1 official job at one time. If they have spare time and want to make more money, they should consider only participating in a part-time job.
In addition, although rare, there are many cases in which the employee has 2 social insurance books made by 2 different companies, a consequence of overlapping works at a time when the paper insurance books are still the main and only way of recording a person’s contributions to society.
If this happens, the employee should carry out the procedures to combine them into a single book. At that time, the social insurance agency withdraws all social insurance books, then completes the database, prints the time of payment and enjoyment of social insurance and unemployment insurance contributions of the social insurance books into a new book.
The number of the re-issued social insurance book is the number of the social insurance book with the earliest time to participate in social insurance. At that time, the employee’s rights are still guaranteed.
It should be noted that if the employee does not carry out the procedure of merging into 1 social insurance book, the social insurance agency will not handle the issues related to social insurance benefits.
ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.
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