Youme Law Firm LLC said that according to Article 96 of the 2019 Labor Code:
Payment method
1. The employer and employee agree on the form of payment by time, product or contract.
2. Salary is paid in cash or through the employee's personal account opened at the bank.
In case of salary payment through the employee's personal account opened at a bank, the employer must pay fees related to opening the account and transferring the salary.
3. The Government shall detail this Article.
Accordingly, hourly wage payment is only a form of salary payment, not the salary used as the basis for social insurance contributions.
According to Article 2 of the Law on Social Insurance 2024:
Subjects participating in compulsory social insurance and voluntary social insurance
1. Employees who are Vietnamese citizens and are subject to compulsory social insurance include:
a) Employees working under indefinite-term labor contracts or fixed-term labor contracts with a term of 01 month or more, including cases where the employee and the employer agree on a different name but with content showing the paid work, salary and management, operation and supervision of one party;
b) Cadres, civil servants and public employees;
c) Defense workers and civil servants, police workers, and people working in other key organizations;
d) Officers and professional soldiers of the people's army; professional officers and non-commissioned officers; officers and technical non-commissioned officers of the people's police; people doing cryptographic work receiving salaries as soldiers;
d) Non-commissioned officers and soldiers of the people's army; non-commissioned officers and soldiers on duty in the people's police; military, police and cryptography students currently studying are entitled to living expenses;
e) Regular militia;
g) Employees working abroad under contracts as prescribed in the Law on Vietnamese Employees Working Abroad Under Contracts, except in cases where international treaties to which the Socialist Republic of Vietnam is a member provide otherwise;
h) A spouse who does not receive a salary from the state budget and is sent on a term of office with a member of a representative agency of the Socialist Republic of Vietnam abroad is entitled to a living allowance;
i) Enterprise managers, controllers, representatives of State capital, representatives of enterprise capital as prescribed by law; members of the Board of Directors, General Directors, Directors, members of the Board of Supervisors or controllers and other elected management positions of cooperatives and cooperative unions as prescribed by the Law on Cooperatives receiving salaries;
k) Non-professional workers at commune, village and residential group levels;
l) The subjects specified in Point a of this Clause work part-time and have monthly salary equal to or higher than the lowest salary used as the basis for compulsory social insurance payment;
YOUTH: ....
Accordingly, hourly-paid employees are subject to compulsory social insurance when meeting the following conditions:
- Working under an indefinite-term labor contract or a fixed-term labor contract with a term of 01 month or more, including cases where the employee and the employer agree on a different name but with content showing the paid work, salary and management, operation and supervision of one party.
- Monthly salary equal to or higher than the lowest salary used as the basis for compulsory social insurance payment.
