Question:
Our company is 100% owned by a Japanese company. The owner of our company is a Japanese company. During our business operations, the parent company in Japan transferred an employee to work with the title of General Director. Here are some details:
– This foreign employee has obtained a work permit through an internal transfer, with the title of manager.
– This foreign employee receives a salary. The source of the salary is paid directly to the employee by the parent company, and then our company reimburses the parent company from the company’s salary fund.
According to the regulations of the health insurance law, individuals who receive a salary and are managers of a company must participate in health insurance.
The question is: Does the foreign employee, who is the General Director and a manager in our company, fall under the category of individuals who must participate in health insurance?
Answer:
– Based on the letter No. 389/BYT-BH dated January 31, 2020, from the Ministry of Health in response to Vietnam Social Insurance (VSI) regarding the issue of health insurance contributions for foreign workers, it is stated that foreign individuals working in Vietnam under the form of internal business transfers in accordance with Article 3, Section 1 of Government Decree No. 11/2016/ND-CP dated February 3, 2016, including managers, managing directors, experts, and technical workers of a foreign enterprise already established and operating in Vietnam’s territory, temporarily transferred within the enterprise’s internal structure to work in Vietnam, and who have been employed by the foreign enterprise for at least 12 months prior, are not subject to health insurance contributions.
– In accordance with the guidance above, the foreign employee who is the General Director and a manager, and who was internally transferred by the foreign parent company to work in Vietnam, is not subject to health insurance contributions.
Question:
On December 7, 2019, our company inquired about whether seniority allowances fall under the income categories for mandatory Social Insurance contributions, but we have not received an answer yet. Therefore, we would like to ask again as follows:
This year, our company provided an additional seniority allowance to employees in cash. This seniority allowance was only given twice a year, in July 2019 and January 2020.
We would like to ask: Does this seniority allowance fall under the income categories for mandatory Social Insurance contributions?
Answer:
– Based on Circular No. 59/2015/TT-BLĐTBXH dated December 29, 2015, and Circular No. 47/2015/TT-BLĐTBXH dated November 16, 2015, of the Ministry of Labor, War Invalids, and Social Affairs, regarding employees who receive salary payments determined by the employer, the basis for Social Insurance contributions starting from January 1, 2018, includes:
The salary amount specified in the labor contract;
Salary allowances: position allowances, title allowances, responsibility allowances, arduous, dangerous, hazardous allowances, seniority allowances, regional allowances, mobility allowances, attraction allowances, and similar allowances;
Additional amounts specified with a specific amount along with the agreed salary amount in the labor contract and paid regularly in each salary payment period.
– According to the regulations in Point b, Section 3, Article 4 of Circular No. 47/2015/TT-BLĐTBXH, amounts that are not considered as the basis for Social Insurance contributions include:
Supplementary amounts that are not specified with a specific amount along with the agreed salary amount in the labor contract, paid irregularly or regularly in each salary payment period related to work performance or work results of employees.
Incentive bonuses; meal allowances; support for gasoline, telephone, transportation, rent, child care, support for employees in case of work-related accidents, occupational diseases, and other support and allowances should be separately itemized in the labor contract according to Point 11, Article 4 of Decree No. 05/2015/NĐ-CP.
– Following the above regulations, seniority allowances that are not specified with a specific amount, not paid regularly in each salary payment period, do not fall under the category of mandatory Social Insurance contributions.
Question:
Our company has its main office in Vietnam and one branch in Japan. In the case where we transfer employees from Vietnam to work at the company’s branch in Japan, what are the mandatory regulations and procedures regarding Social Insurance (BHXH), Health Insurance (BHYT), and Unemployment Insurance (BHTN) that we need to comply with?
Answer:
– Based on Official Letter No. 1660/BHXH-THU dated May 28, 2015, from the Social Insurance Agency of Ho Chi Minh City regarding guidelines for implementing the collection of social insurance and health insurance (BHYT) premiums for employees during their overseas assignments for study or work, as well as extended periods of sickness:
Employees who are assigned to study or work abroad do not need to pay BHYT premiums during their overseas assignment. The period of their overseas assignment is counted as their participation in BHYT until the date when they receive a decision to return to work issued by the sending agency or organization. However, they still need to pay BHXH and BHTN premiums based on the salary they were receiving before being assigned to study or work abroad.
For employees who receive salaries or wages during their overseas assignments, the monthly premium rate is 28% of their monthly salary or wage, comprising BHXH at 26% (employer: 18%, employee: 8%) and BHTN at 2% (employer: 1%, employee: 1%).
For employees who do not receive salaries or wages during their overseas assignments, the monthly premium rate is 22% (retirement and death benefit fund), calculated based on the monthly salary or wage that was subject to mandatory BHXH contributions by the employee before going to work abroad, and paid entirely by the contributor.
Therefore, your company should prepare a list of employees participating in social insurance, health insurance, and unemployment insurance (Form D02-TS), along with a request letter for social insurance and unemployment insurance premium collection. In the request letter, you should specify whether the employees receive salaries or not, attach the decision on overseas study or work assignments, and other relevant documents for the social insurance agency to issue separate tracking codes. Additionally, the company should prepare an adjustment file on Form D02-TS (distinct from Form D02-TS for reporting increases) for the agency you are currently participating in for social insurance, health insurance, and unemployment insurance. In the “Notes” column, you should indicate “Studying or working abroad.”
