Procedures for First-Time Social Insurance Registration for Businesses

The procedure for registering social insurance for the first time for a business is the procedure for applying for a social insurance unit code. So what are the documents and procedures for registering social insurance for the first time for a business? What are the regulations and responsibilities for paying social insurance for businesses? fdiinvietnam.com will answer you in this article.

Subjects participating in compulsory social insurance

Participating in social insurance is the responsibility of businesses and employees. There are 3 groups of people who must pay social insurance, including:

1. People working under a labor contract with a definite term/indefinite term, seasonal or for a certain job with a term from 3 months to less than 12 months;
2. Employees working under labor contracts with a term from 1 month to less than 3 months;
3. Business managers receive salaries.

See more: Benefits of participating in social insurance.

First social insurance registration file for businesses

Social insurance participation file includes the following documents:

Procedures for first time social insurance registration

Enterprises register for social insurance for the first time according to the following steps:

Step 1. Apply for a unit code

Enterprises can submit applications for social insurance unit codes directly at the social insurance agency or submit online in the following 2 ways:

• Method 1: Perform the procedure of registering the social insurance unit code on the electronic social insurance declaration software and use the enterprise’s digital signature to sign for authentication. You can easily register to buy digital signatures and social insurance declaration software from suppliers such as VIETTEL, VNPT, BKAV…;
• Method 2 : Access the website of the Vietnam Social Security Agency at the link: https://dichvucong.baohiemxahoi.gov.vn to register the unit code and track the status of the application processing (for example, Ho Chi Minh City is applying this form).

Time to process the application: Maximum 7 working days, the Social Insurance Agency will check the application and issue a Social Insurance unit code to the business, however in reality it may only take 1-2 days.

Note : In many provinces and cities, after registering for a unit code on the social insurance declaration support software, businesses must submit paper documents to the insurance agency. The documents include: Form TK3-TS and a copy of the company’s Business Registration.

Step 2. Report increase in labor

After being granted a social insurance unit code, the enterprise can perform the procedures of reporting an increase or decrease in labor. At this step, the enterprise can register a declaration account on social insurance declaration software or on the Vietnam Social Insurance website or submit paper documents to the social insurance management agency.

Once the enterprise registers and pays social insurance for employees, the social insurance agency will issue the employee’s social insurance book and health insurance card after 5 days. 

In case the enterprise submits the social insurance registration form for the first time, it can combine the documents of step 1 and step 2 when submitting the social insurance application. Note that it must attach a photo ID card of the employee participating in social insurance.

 

Social insurance contribution level and rate

The current normal social insurance contribution rate is 32%, of which the enterprise contributes 21.5% for the employee and the employee must contribute 10.5%.

• Social insurance contribution amount = 32% x Social insurance contribution salary;
• Social insurance contribution salary > or = Regional minimum wage;
• Social insurance contribution salary = salary + allowance + other additional payments according to regulations.

The monthly salary for compulsory social insurance contribution must not be lower than the regional minimum wage at the time of contribution for employees doing the simplest job or position under normal working conditions.

For example: The minimum wage in region 1 is 4,729,400 VND for trained workers and 4,420,000 VND for untrained workers.

The maximum contribution level is not more than 20 times the basic salary. From July 1, 2019, the basic salary is 1,490,000 VND. Thus, the maximum social insurance contribution level is 20 x 1,490,000 VND = 29,800,000 VND.

Thus, businesses can pay social insurance for trained employees with salaries ranging from VND 4,729,400 to VND 29,800,000.

 

Notes businesses need to know when registering for social insurance for the first time

Enterprises must complete the first social insurance registration procedure within 30 days from the date the enterprise signs the labor contract/work contract or recruits the employee.

Each enterprise, when registering for social insurance for the first time at the administrative agency at the district, county, or city level, will be given a unit code so that the social insurance management agency there can monitor it separately.

When changing address to another district or province, the enterprise must report the reduction of employees and close the social insurance books for employees. And when moving to a new district, county, or province, the enterprise must register to re-issue a new social insurance unit code and submit the first social insurance application. Except for some enterprises whose management agency is the social insurance of the province or centrally-run city, when moving to another province, the application must be re-made, but when within the province or city, it is not necessary.

After the enterprise reports an increase in labor, for employees who already have a social insurance book, they will only be issued a health insurance card. If the social insurance book is lost, they must apply for a new book and then the increase report will be approved.

*From January 1, 2021, according to Article 8 of the Enterprise Law 2020, the enterprise tax code is also the code of the unit participating in social insurance, but in reality, the Social Insurance agency has not yet applied it.

Some frequently asked questions when businesses register for social insurance for the first time

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