1. What is Social Insurance?

Social insurance (SI) is an important social security policy of the Vietnamese state and government aimed at ensuring income for participants when they experience a reduction or loss of income due to:

• Illness, maternity: Workers are entitled to benefits when they are sick or pregnant, with the amount of payment depending on the length of SI participation and the salary contribution.
• Occupational accidents, occupational diseases: Workers are entitled to benefits when they suffer from occupational accidents or occupational diseases, with the amount of payment depending on the level of the injury and the length of SI participation.
• Retirement: Workers are entitled to a pension when they reach retirement age as prescribed.
• Death: Workers are entitled to a death benefit for their loved ones when they die.

SI is implemented on the principles of voluntariness, self-responsibility, contribution, and enjoyment. SI participants will contribute a certain amount of money to the social insurance fund each month. When there is a need to receive benefits, participants will be paid from the social insurance fund.

Benefits of participating in SI:

• Income security: SI helps you secure your income when you experience a reduction or loss of income due to illness, maternity, occupational accidents, occupational diseases, retirement, or death.
• Protect yourself and your family: SI helps you protect yourself and your family from life’s risks.
• Enhance social security: SI contributes to strengthening social security and improving people’s quality of life.

2. Types of Social Insurance

a) Compulsory Social Insurance (CSI)

Participants:

• Workers working under labor contracts.
• Civil servants and public servants.
• Professional officers and soldiers.
• Students.
• Other subjects as prescribed by law.

Benefits:

• Benefits when sick, pregnant.
• Benefits when occupational accidents, occupational diseases.
• Pension.
• Death benefits.
• Other benefits as prescribed by law.

Obligations:

• Workers: Contribute SI according to the prescribed rate (14% – 23% depending on salary).
• Employers: Contribute SI according to the prescribed rate (14% – 23% depending on salary) and fulfill other obligations as prescribed by law.

Advantages:

• Full and stable benefits guaranteed.
• Large number of participants, effective risk sharing.
• Tight and transparent management system.

Disadvantages:

• Low flexibility, difficult to adjust to individual needs.
• Contribution level may be high for some subjects.

b) Voluntary Social Insurance (VSI)

Participants:

• Workers who do not participate in CSI.
• Unemployed people.
• Vietnamese living abroad.
• Other subjects as prescribed by law.

Benefits:

• Benefits when sick, pregnant.
• Benefits when occupational accidents, occupational diseases.
• Pension.
• Death benefits.
• Other benefits as prescribed by law.

Obligations: Participants decide their own contribution level and contribution method (monthly, quarterly, annually).

Advantages:

• High flexibility, easy to adjust to individual needs.
• Contribution level is suitable for the financial capacity of the participants.

Disadvantages:

• Benefits depend on the contribution level of the participant.
• Fewer participants, ineffective risk sharing.
• Management system is not as tight as CSI.

The choice of which type of SI is appropriate depends on the individual’s needs, financial capacity, and circumstances.

3. Benefits of Social Insurance Participants

Benefits when sick, pregnant: Workers are entitled to benefits when they are sick or pregnant, with the amount of payment depending on the length of SI participation and the salary contribution.

• Conditions for enjoyment:
  • Workers have participated in SI for 3 consecutive months before taking sick leave, giving birth, or adopting children.
  • Have documents proving the time of illness, childbirth, or adoption as prescribed.
• Procedures for enjoyment:
  • Workers make an application for sick leave, maternity leave benefits according to the prescribed form.
  • Submit the application and related documents to the SI agency where they participate.
  • The SI agency will verify and pay benefits according to regulations.

Benefits when occupational accidents, occupational diseases: Workers are entitled to benefits when they suffer from occupational accidents or occupational diseases, with the amount of payment depending on the level of the injury and the length of SI participation.

• Conditions for enjoyment:
  • Workers have participated in SI for 3 consecutive months before the occupational accidents or occupational diseases occur.
  • Have documents proving the occupational accidents or occupational diseases as prescribed by law.
• Procedures for enjoyment:
  • Workers make an application for occupational accidents or occupational diseases according to the prescribed form.
  • Submit the application and related documents to the SI agency where they participate.
  • The SI agency will verify and pay benefits according to regulations.

Pension: Workers are entitled to a pension when they reach retirement age as prescribed by law. The pension amount is calculated based on the duration of participation in social insurance, the salary contribution, and other factors as prescribed by law.

• Conditions for enjoyment:
  • Workers must have participated in social insurance for at least 15 years.
  • Workers must have reached the prescribed retirement age (60 years old for men, 55 years old for women).
• Procedures for enjoyment:
  • Workers make an application for pension according to the prescribed form.
  • Submit the application and related documents to the SI agency where they participate.
  • The SI agency will verify and pay benefits according to regulations.

Death benefit: Workers’ loved ones are entitled to a death benefit when the worker passes away. The death benefit amount is prescribed in the death benefit table.

• Conditions for enjoyment:
  • The worker must have been participating in social insurance at the time of death.
  • The worker’s loved ones must have documentation proving their relationship to the worker as prescribed by law.
• Procedures for enjoyment:
  • The worker’s loved ones must submit an application for death benefit according to the prescribed form.
  • The application and supporting documents must be submitted to the social insurance agency where the worker was participating.
  • The social insurance agency will verify the information and pay the death benefit according to the regulations.

Other benefits: Social insurance participants are also entitled to other benefits, such as preferential loans for home purchase, healthcare services, and recreational activities.

4. How to participate in social insurance?

a) For workers

Required documents

• Application form for participation, adjustment of information on social insurance and health insurance (Form TK1-TS).
• Labor contract (copy).
• ID card/citizen’s identity card (copy).
• Household registration book (copy).
• Birth certificate (copy) (for children under 14 years old).
• Documents proving relationship (copy) (for dependent family members).

Submission of documents

• Workers submit their documents to the social insurance agency at the place where the business is headquartered.
• In the case where the enterprise does not have a social insurance code, the enterprise will submit the TK3-TS declaration form to be issued a social insurance code in advance.

Confirmation of participation

• After receiving the application, the social insurance agency will check and confirm the information for the worker.
• Workers will receive their social insurance book and health insurance card.

b) For employers

Required documents

• Application form for unit participation, adjustment of information on social insurance and health insurance (Form TK3-TS).
• Business license/Certificate of registration of business household (copy).
• Documents proving property (copy) (for private enterprises).
• Documents proving ownership (copy) (for state-owned enterprises).

Submission of documents: Enterprises submit their documents to the social insurance agency at the place where the enterprise is headquartered.

Confirmation of participation

• After receiving the application, the social insurance agency will check and confirm the information for the enterprise.
• The enterprise will receive a social insurance code.

Additional resources:

• https://luatvietnam.vn/bao-hiem/luat-bao-hiem-xa-hoi-2014-91349-d1.html
• https://luatvietnam.vn/bao-hiem/bao-hiem-xa-hoi-la-gi-563-32915-article.html
• https://ebh.vn/nghiep-vu-tong-hop/tong-quan-ve-bao-hiem-xa-hoi-va-cac-che-do-bhxh-tai-viet-nam