10 new points in implementing the law on compulsory social insurance

Accordingly, from September 1, 2021, 10 new points in the implementation of the Law on Social Insurance on compulsory social insurance will take effect. Specifically as follows:

1. Regarding subjects participating in compulsory social insurance

In Clause 1, Article 1 of Circular 06/2021/TT-BLDTBXH amends Clause 1, Article 2 of Circular 59/2015/TT-BLDTBXH as follows: “Part-time workers in communes, wards and towns who are also labor contract signatories specified in Point a and Point b, Clause 1, Article 2 of the Law on Social Insurance shall participate in compulsory social insurance according to the subjects specified in Point a and Point b, Clause 1, Article 2 of the Law on Social Insurance.

Specifically, points a and b, Clause 1, Article 2 of the Law on Social Insurance stipulates:

Article 2. Subjects of application

1. Employees who are Vietnamese citizens are subject to compulsory social insurance, including:

a) Persons working under indefinite-term labor contracts, fixed-term labor contracts, seasonal labor contracts or labor contracts for a specific job with a term of 3 months to less than 12 months, including labor contracts signed between the employer and the legal representative of a person under 15 years of age in accordance with the provisions of labor law;

b) Employees working under a labor contract with a term of 01 month to less than 03 months;..."

Thus, in the case of a non-professional worker in a commune, ward or town who is also an employee under a fixed-term labor contract from 1 month to less than 3 months, etc., he/she must participate.Compulsory social insuranceby group of workers working under contract.

Grassroots union officials are the force closest to workers. Photo courtesy of DT

2. Amounts included and excluded from compulsory social insurance contributions:

Incomes subject to and not subject to compulsory social insurance from January 1, 2021 are guided by Circular 06/2021/TT-BLDTBXH/TT-BLDTBXH (Clause 26, Article 1), specifically as follows:

Incomes subject to compulsory social insurance contributions From January 1, 2021 onwards, the monthly salary subject to social insurance contributions is the salary, salary allowances and other supplements specified in Point a, Section b1 Point b and Section c1 Point c Clause 5 Article 3 Circular 10/2020/TT-BLDTBXH. Specifically:

(1) Salary by job or title:

Record the salary calculated by time of the job or position according to the salary scale and salary table established by the employer according to the provisions of Article 93 of the Labor Code;

For employees receiving wages based on products or piecework, record the salary calculated by time to determine the unit price of products or piecework wages;

(2) Salary allowance according to agreement of both parties:

Salary allowances to compensate for factors such as working conditions, job complexity, living conditions, and labor attraction that the agreed salary in the labor contract has not taken into account or has not fully taken into account.

Minh Anh Kim Lien Garment Company ensures stable jobs for more than 3,000 workers during the complicated epidemic period. Photo courtesy of TH

(3) Other additional amounts as agreed by both parties are as follows:

Supplements are defined as a specific amount of money in addition to the salary agreed upon in the employment contract and paid regularly in each pay period.

Income not subject to compulsory social insurance contributions:

The monthly salary for compulsory social insurance does not include other benefits and welfare such as: Bonuses as prescribed in Article 104 of the Labor Code; Innovation bonus; Mid-shift meal allowance;

- Support such as: Gasoline; Phone; Travel; Housing; Babysitting; Childcare.

- Support when the employee: Has a relative die; Has a relative get married; Employee's birthday.

- Subsidies for employees in difficult circumstances when suffering from work-related accidents or occupational diseases;

- Other support and allowances are recorded as separate items in the Labor Contract according to the provisions in Section c2, Point c, Clause 5, Article 3, Circular 10/2020/TT-BLDTBXH.

C2) Additional amounts that do not have a specific amount of money in addition to the salary agreed upon in the labor contract, paid regularly or irregularly in each pay period related to the work process and work performance of the employee.

3. Sick leave benefit level when taking leave for less than a month:

In Clause 2, Article 1 of Circular 06/2021/TT-BLDTBXH, Point b, Clause 2, Article 6 of Circular 59/2015/TT-BLDTBXH is amended as follows: “The month of sick leave is calculated from the first day of sick leave of that month to the previous day of the following month. In case there are odd days that are not a full month, the sick leave benefit for those odd days that are not a full month is calculated according to the formula below, but the maximum is equal to the sick leave benefit for one month:

Sick leave benefit for illness requiring long-term treatment on odd days not in a month = Social insurance contribution salary of the month immediately before taking leave / 24 days x Sick leave benefit rate (%) x Number of days off for sick leave.

In there:

- Sick leave benefit rate as prescribed in Point a of this Clause.

- Number of days off for sick leave includes holidays, Tet holidays, and weekly days off.

Compared to the current Circular 06/2021/TT-BLDTBXH adds regulations that the maximum sick leave benefit level for odd days not in a month is equal to the sick leave benefit level for one month.

Many workers in the garment industry still have good income during the epidemic. Photo: Xuan Hoang

In addition, employees who are subject to compulsory social insurance contributions to the sickness and maternity fund and are sick or have an accident that is not a work-related accident or have to take time off work to take care of a sick child under 7 years old and the time off work is 14 working days or more in a month (including cases of unpaid leave), the level of sick leave benefits is calculated based on the salary level of social insurance contributions of the month immediately before the leave.

(According to Circular 59/2015/TT-BLDTBXH, it is calculated based on the monthly salary used as the basis for social insurance payment of that month).

In case the employee continues to be sick in the following months and has to take time off work, the sick leave benefit will be calculated based on the monthly salary used as the basis for social insurance contributions of the month immediately preceding the time off work. (New content).

4. Clarifying the case of receiving one-time allowance upon childbirth for male workers:

Clause 5, Article 1 of Circular 06/2021/TT-BLDTBXH, supplement point c, clause 2, Article 9 of Circular 59/2015/TT-BLDTBXH as follows:

In case the mother participates in social insurance but is not eligible for maternity benefits when giving birth, while the father meets the conditions specified in Point a, Clause 2, Article 9 of Circular 59/2015/TT-BLDTBXH, the father is entitled to a one-time allowance when giving birth according to Article 38 of the Law on Social Insurance.

This supplementary provision is intended to clarify the provisions on one-time allowance upon childbirth in Article 38 of the Law on Social Insurance.

Thus, in case both husband and wife participate in social insurance but the wife is not eligible for maternity benefits, the husband who has paid social insurance for 6 months in the 12 months before giving birth will receive a one-time allowance upon giving birth equal to 2 months of basic salary in the month of birth for each child.

In addition, the determination of the 12-month period before giving birth for male employees, the husband of the surrogate mother receiving a one-time allowance when his wife gives birth is implemented according to the provisions of Clause 1, Article 9 of Circular 59/2015/TT-BLDTBXH.

Nghe An workers in other provinces come to the One-Stop Department to submit documents to resolve unemployment insurance regime due to Covid - 19. Photo courtesy of Nguyen Hai

5. Annual leave coincides with maternity leave:

Clause 7, Article 1 of Circular 06/2021/TT-BLDTBXH supplements guidance on cases where the maternity leave period coincides with annual leave.

Specifically, when calculating the maternity leave period as prescribed in Article 32, Article 33, Clause 2, Article 34 and Article 37 of the Law on Social Insurance in cases where employees are on annual leave, personal leave, or unpaid leave as prescribed by labor law:

- Time overlapping with annual leave, personal leave, unpaid leave is not counted as benefits;

- Time off work other than annual leave, personal leave, and unpaid leave is counted as maternity benefits according to the provisions of Article 32, Article 33, Clause 2, Article 34 and Article 37 of the Law on Social Insurance.

6.About rest and recovery after maternity leave:

Clause 8, Article 1 of Circular 06/2021/TT-BLDTBXH adds the regulation: “The first 30 working days as prescribed in Clause 1, Article 41 of the Law on Social Insurance is a period of 30 working days from the date of expiry of the maternity leave period when the employee's health has not recovered.

The addition of this content is aimed at the regulation in Clause 1, Article 41 of the Law on Social Insurance:

Female employees, immediately after the maternity leave period, within the first 30 working days, whose health has not yet recovered, are entitled to rest and recuperate for 5 to 10 days.

At the same time, supplement the regulation: Female employees who return to work before the end of their maternity leave as prescribed in Article 40 of the Law on Social Insurance will not be entitled to health care and recovery benefits after the period of enjoying benefits when giving birth.

For businesses that produce electronic components and mainly use machines, arranging machines scientifically is to ensure occupational safety and hygiene. Photo courtesy of DA-MH

7. Conditions for receiving pension for people who have had their military rank or title of People's Public Security revoked:

Clause 13 of Circular 06/2021/TT-BLDTBXH adds Clause 5 to Article 15 of Circular 59/2015/TT-BLDTBXH as follows:

Employees specified in Point d and e, Clause 1, Article 2 of the Law on Social Insurance who are stripped of their military rank or title of People's Public Security Officer: The conditions for receiving pension shall be implemented according to the provisions in Clause 1, Article 54 and Clause 1, Article 55 of the Law on Social Insurance as amended at Point a and Point b, Clause 1, Article 219 of the 2019 Labor Code and the instructions in Circular 59/2015/TT-BLDTBXH (amended in Circular 06/2021/TT-BLDTBXH).

Thus, if a school is stripped of its military rank or title of people's police officer and meets all the same conditions as normal employees, it will be entitled to a pension.

(Meanwhile, if their military rank and title of people's police are not revoked, these people can retire up to 5 years early according to Clause 2, Article 54 of the Law on Social Insurance).

8. Supplementing regulations on monthly salary for social insurance contribution to calculate pension benefits:

Clause 19, Article 1 of Circular 06/2021/TT-BLDTBXH supplements Clause 3a after Clause 3, Article 20 of Circular 59/2015/TT-BLDTBXH as follows:

When calculating the average monthly salary for social insurance contributions to calculate pension and one-time allowance, if the period of social insurance contributions is before October 1, 2004 according to the salary regime prescribed by the State, the monthly salary for social insurance contributions during this period will be converted according to the salary regime at the time of receiving pension and death benefits.

As for employees who have worked in enterprises paying social insurance according to the salary regime prescribed by the State and received social insurance from January 1, 2016 onwards, the monthly salary paid for social insurance before October 1, 2004 as mentioned above will be converted according to the salary prescribed in Decree 205/2004/ND-CP.

9. Amend some regulations to comply with the 2019 Labor Code and guiding documents:

- From January 1, 2021, the conditions for receiving pension when employees' working capacity is reduced are implemented according to the provisions of Article 55 of the Law on Social Insurance, amended and supplemented at Point b, Clause 1, Article 219 of the Labor Code. (Clause 1, Article 16, Circular 59/2015/TT-BLDTBXH)

- From January 1, 2021 onwards, the age threshold for calculating the number of years of early retirement as a basis for calculating the reduction in pension rate shall be implemented according to the provisions of Clause 3, Article 7 of Decree 135/2020/ND-CP. (Clause 1, Article 17 of Circular 59/2015/TT-BLDTBXH).

Textile factories have been invested in many localities, attracting local labor resources. Photo: Thu Huyen

10. Supplementing regulations on cases of receiving monthly death benefits:

Clause 23, Article 1 of Circular 06/2021/TT-BLDTBXH supplements the end of Clause 1, Article 25 of Circular 59/2015/TT-BLDTBXH as follows:

The time for considering the age of relatives of employees as prescribed in Clause 2, Article 67 of the Law on Social Insurance is the end of the last day of the month the employee died.

When resolving death benefits, if the employee's relative's file does not determine the date and month of birth, January 1 of the year of birth will be used to calculate age as the basis for resolving death benefits.

The determination of the income level of the employee's relatives as the basis for settling monthly death benefits according to the provisions of Clause 3, Article 67 of the Law on Social Insurance is determined in the month the employee dies.

Relatives who have been granted monthly death benefits according to regulations and then have income higher than the basic salary will still receive monthly death benefits.