If retired employees go back to work, do they have to pay social insurance in Vietnam?

If retired employees go back to work, do they have to pay social insurance in Vietnam?

According to the provisions of Clause 3, Article 123 of the Law on Social Insurance 2014, stipulates:

3. Employees who have paid social insurance premiums, covering also the region-based allowance, are entitled to not only pension, lump-sum social insurance allowance and survivorship allowance but also a lump-sum region- based allowance; persons on pension, monthly working capacity loss allowance or occupational accident or occupational disease allowance who are enjoying a monthly region-based allowance in their places of permanent residence eligible for region-based allowance are entitled to continue enjoying such allowance.

Moreover, Clause 3, Article 168 of the Labor Code 2019 provides for participation in social insurance, health insurance and unemployment insurance, in which:

1. Employers and employees shall participate in compulsory social insurance, compulsory health insurance and unemployment insurance and enjoy the benefits in accordance with provisions of the law on social insurance, health insurance and unemployment insurance.

Employers and employees are encouraged to obtain other kinds of insurance for employees.

2. The employer shall not be required to pay salary for an employee when the employee is on leave and receiving social insurance benefits, unless otherwise agreed by both parties.

3. Where an employee is not covered by compulsory social insurance, compulsory health insurance or unemployment insurance, the employer shall, in addition to and at the same time with salary payment, pay the employee an amount equal to the compulsory social insurance, compulsory health insurance, unemployment insurance premiums payable by the employer in accordance with regulations of law on social insurance, health insurance and unemployment insurance.

Therefore, in case your company signs a labor contract with a person on pension, it is not required to pay compulsory social insurance. However, your company must pay an additional amount equivalent to the company's payment of social insurance for employees in Vietnam.

Best Regards!