Do elderly employees have to pay social insurance?
Clause 9, Article 123 of the Law on Social Insurance 2014 stipulates that:Persons on pension, social insurance allowance or monthly allowance who are working under signed labor contracts shall not be covered by compulsory social insurance.
Point a, Clause 2, Article 12 of the Consolidated Document on the Law on Health Insurance providing for the participants of health insurance as follows: 2. The group paid by the social insurance organization, including: a) The pensioners monthly allowance for loss of working capacity;
Clauses 1 and 2, Article 43 of the 2013 Employment Law, stipulates the subjects required to participate in unemployment insurance as follows:
1. Workers are obliged to participate in unemployment insurance when working under labor contracts or working contracts below:
a/ Labor contracts or working contracts of indefinite time;
b/ Labor contracts or working contracts of definite time;
c/ Seasonal or job-based working contracts with a term of between full 3 months and under 12 months.
In case a worker has signed and is performing more than one labor contract specified in this Clause, the worker and the employer under the labor contract signed first shall participate in unemployment insurance.
2. Workers defined in Clause 1 of this Article who are currently on pension or doing housework are not required to participate in unemployment insurance.
Clause 3, Article 186 of the 2012 Labor Code stipulates that: For an employee who is not covered by compulsory social insurance, compulsory health insurance and unemployment insurance, the employer shall simultaneously pay to the employee a wage and an amount which is equivalent to the level of contribution to compulsory social insurance, compulsory health insurance and unemployment insurance, and annual leave payments in accordance with regulations.
Thus, a company that signs a labor contract with a pensioner is not required to pay compulsory social insurance, health insurance and unemployment insurance. However, in addition to the salary based on the job, the company also has to pay more at the same time with the pay period an amount equivalent to the prescribed rate of social insurance, health insurance and unemployment insurance.