1. Social insurance obligations for multiple employment contracts

According to the Social Insurance Law 2014:

• SI: Contribute based on the first signed and effective employment contract.
• HI: Contribute based on the contract with the highest salary.
• UI: Contribute based on the first signed and effective employment contract.
• Occupational Accident and Disease Insurance (OADI): Contribute based on each employment contract.

However, in practice, social insurance authorities manage as follows:

• Employees fully contribute mandatory SI under the first employer.
• The second employer contributes 0.5% OADI, and the third employer also contributes 0.5% OADI, and so on.
  For contracts not subject to mandatory SI, HI, or UI contributions, employers are required to pay employees an additional amount equivalent to these contributions simultaneously with the salary, in accordance with legal provisions.

Note:

• The “first contract” refers to the earliest effective contract eligible for mandatory SI participation.

2. Specific situations and solutions

• Case 1: Signing two contracts simultaneously:
  Employees must inform employers about their SI, HI, and UI contributions at other workplaces to avoid duplication.
• Case 2: The second contract offers a higher salary:
  Mandatory SI contributions remain with the first contract.
  • The second employer registers for 0.5% OADI contributions.
  • Additionally, the second employer must pay an amount equivalent to mandatory SI, HI, and UI contributions directly to the employee as per regulations.

3. Consequences of violating SI regulations

• For employees: Failing to provide accurate information may result in duplicate contributions or loss of insurance benefits.
• For businesses: Non-compliance can lead to administrative fines and adversely affect employees’ rights.

4. Benefits of understanding SI regulations

• Ensures long-term insurance benefits, especially retirement and sick leave entitlements.
• Helps businesses comply with legal obligations and avoid additional costs from violations.

Conclusion:

Participating in SI when signing multiple employment contracts may seem complicated but becomes simpler with a proper understanding of regulations. Avoid letting legal issues impact your benefits and business reputation.

For expert consultation on social insurance matters, don’t hesitate to reach out to the professional team at TPM. We are always ready to assist you.

Contact:
Ms. Do Thi Thu Quynh – Head of Payroll and HR Services
Email: quynh.do@tpm.com.vn

References:

• Law on Social Insurance No. 58/2014/QH13 (November 20, 2014)
• Law on Employment No. 38/2013/QH13 (November 16, 2013)
• Decree No. 28/2015/ND-CP (March 12, 2015)
• Labor Code 2019 (November 20, 2019)
• Amended Law on Health Insurance 2014 (June 13, 2024)
• Law on Occupational Safety and Hygiene 2015 (June 25, 2015)