Ms. Vu Kim Lan (Hanoi) asked: My company has signed a labor contract with female workers over 55 years old (the retirement age). However, if employees are not receiving pensions or social insurance benefits, are they subject to compulsory social insurance?
Ms. Duong Thi Minh Chau - Head of the Department of Propaganda and Support for Social Insurance participants (SI) of Hanoi City said:
Pursuant to the provisions of Article 169 of the 2019 Labor Code and Decree No. 135/2020/ND-CP dated November 18, 2020, regulating the retirement age of employees in normal working conditions.
Accordingly, in 2025, the retirement age for male workers will be 61 years and 3 months, for female workers will be 56 years and 8 months. The pension increase roadmap is adjusted until reaching 62 years old for male workers in 2028 and 60 years old for female workers in 2035.
Subjects not subject to compulsory social insurance:
Pursuant to Point a, Clause 7, Article 2 of the Law on Social Insurance 2024: Subjects receiving social insurance benefits and monthly allowances are not subject to compulsory social insurance.
Subjects subject to compulsory social insurance:
Pursuant to the provisions of Point a, Clause 1, Article 2 of the Law on Social Insurance 2024: Employees who are Vietnamese citizens working under an indefinite-term labor contract of 01 month or more, including cases where the employee and the employer agree under another name but have content showing that the job has payment, salary and management, operation and supervision by one party, are subject to compulsory social insurance.
According to information provided by readers, female workers, who are of retirement age and are not receiving pensions or social benefits, when signing an indefinite-term labor contract with a term of 1 month or more, must still participate in compulsory social insurance.
Pursuant to Point a, Clause 1, Article 11 of the Law on Social Insurance 2024: Social insurance participants are responsible for paying social insurance according to regulations.
Pursuant to Point a, Clause 1, Article 13 of the Law on Social Insurance 2024: Employers are responsible for registering for compulsory social insurance for employees according to regulations; coordinate with the Social Insurance agency in returning a paper copy of the social insurance book to employees.
Therefore, employees cannot apply for not participating in social insurance (if employees are subject to compulsory social insurance) because this is a mandatory responsibility stipulated in the Social Insurance Law 2024.
If both employees and employers do not participate in full payment, this behavior will be subject to administrative sanctions according to the provisions of Decree No. 12/2022/ND-CP dated January 17, 2022 of the Government or criminal prosecution.
