HR Compliance With Social Insurance: A Solution to Minimize Risks
Participating in compulsory social insurance is the responsibility of every business when starting to employ employees. However, not all businesses clearly understand the tasks related to this responsibility, especially those that are newly operating. There are 05 points to note for businesses when participating in compulsory social insurance and HR Compliance With Social Insurance as follows:
1. Subjects required to participate in compulsory social insurance
Currently, there are groups of subjects that all businesses use to meet production and business needs, which are:
- Employees working under labor contracts with a term of 01 month to less than 03 months
- Employees working under indefinite-term labor contracts, labor contracts with a term of 12 to less than 36 months, seasonal labor contracts or contracts for a certain job with a term of 03 months to less than 12 months
- Business managers receiving salaries
- Foreign employees (must have a work permit, practice certificate or legal practice license)
All of the above subjects must participate in compulsory social insurance (according to Article 2 of the Law on Social Insurance 2014), so employers are responsible for participating in social insurance for these employees
Investing in HR compliance With Social Insurance is investing in the future of your business.
2. When Enterprises must participate in compulsory social insurance for employees
Within 30 days from the date of signing the labor contract or employment contract, the employer must submit social insurance registration documents for employees (according to Decision 772/QD-BHXH).
3. Must pay fully and on time
According to Decision 595/QD-BHXH, the compulsory social insurance contribution level of enterprises and employees is stipulated as follows:
Monthly contribution level = Monthly salary for insurance contribution x Social insurance contribution rate
Regarding the payment period:
- Enterprises can choose to pay insurance by monthly, 3-month or 6-month payment method into the specialized collection account of the Social Insurance agency opened at a bank or state treasury
- If paying monthly: no later than the last day of the month
- If paying 3-month or 6-month payment: no later than the last day of the payment period (applicable to enterprises, cooperatives, individual business households... paying salary by product or contract)
4. Timely adjustment when there is a change
In cases of increase/decrease in labor, change of enterprise name, business registration location, enterprise code, change of monthly salary for social insurance contribution of employees..., enterprises must complete procedures and adjust with the Social Insurance agency in a timely manner, avoiding affecting the rights of employees as well as the enterprise itself.
5. Employees working in many places
According to Article 4 of Decree 44/2013/ND-CP, the enterprise's responsibility to participate in insurance for employees is stipulated as follows:
- For compulsory social insurance, unemployment insurance: if the enterprise is the first employer with whom the employee has a contract, it must participate in compulsory social insurance, unemployment insurance for the employee.
- For health insurance: if the labor contract between the enterprise and the employee has the highest salary, the enterprise must participate in health insurance for the employee.
If the enterprise is one of the remaining employers (2nd, 3rd...), it must pay at the same time as the employee's salary an amount equivalent to the compulsory social insurance, unemployment insurance and health insurance contribution level under its responsibility.
Participating in compulsory social insurance is the responsibility of every business
>>>Read more: What types of recruitment services are included?
6. Business can refer to the following regulation for HR Compliance With Social Insurance: A Solution to Minimize Risks
- Decree No. 44/2013/ND-CP, detailing the implementation of a number of articles of the Labor Code on labor contracts
- Decision No. 595/QD-BHXH, promulgating the procedures for collecting social insurance, health insurance, unemployment insurance, occupational accident and disease insurance; managing social insurance books and health insurance cards
- Decision No. 772/QD-BHXH on promulgating alternative administrative procedures in the field of collecting social insurance, health insurance, unemployment insurance, occupational accident and disease insurance; issuing social insurance books and health insurance cards under the jurisdiction of Vietnam Social Security.
HR compliance is an essential set of rules that help businesses operate fairly and ensure the safety of employees. These specific regulations protect the company and take care of the rights of employees, thereby creating a healthy working environment where every individual receives fair treatment. Understanding the meaning of HR compliance is the key to building a strong and prosperous organization.
Don't miss out on Faro Vietnam's latest HR, management, labor regulations, and exciting events!
If you need more assistance, please contact us:
- Faro Vietnam
- Email: service@farovietnam.com.vn
HANOI HEAD OFFICE
- Tel: + 84 24 3974 3091
HO CHI MINH CITY OFFICE
- Tel: + 84 28 3821 4654
Grow your business with our trusted Human Resource Solutions.
FAST NEW





What will change in the 5-year continuous health insurance policy from July 1, 2025?
13/02/2025
Managing Working Hours: What Should Businesses Comply With?
20/01/2025
Building a Safe Work Environment: What Role Does HR Compliance Play?
13/01/2025
Minimize the Risk of Legal Disputes When Laying Off
06/01/2025
Attracting Top Industry Talent in Vietnam 2025
30/12/2024
New Labor Law: How Can Businesses Avoid Being Fined?
26/12/2024
Are foreigners allowed to join the Vietnam Trade Union?
15/12/2024
5 personality and traits Human Resource needs to have
12/12/2024
Vietnam applies new pension policy in 2025
09/12/2024
How to set up employee experience for Vietnam business
05/12/2024