Accountants, HR personnel, and employees need to know this.

Báo Quốc Tế•12/10/2023

If an employee takes 14 or more days of unpaid leave in a month, are they required to pay social insurance, health insurance, and unemployment insurance contributions? Do they need to report a reduction in the number of employees? - Reader Thuy Anh

Người lao động nghỉ việc 14 ngày trở lên: Kế toán, nhân sự, NLĐ cần biết

Some things to know when employees take 14 days or more of leave. (Source: Internet)

Do employees who are absent from work for 14 days or more have to pay social insurance, health insurance, and unemployment insurance contributions?

Based on the provisions of Clauses 4, 5 and 6 of Article 42 of Decision 595/QD-BHXH dated April 14, 2017, in the case of an employee taking leave for 14 days or more:

- Case 1: If an employee is absent from work for 14 working days or more in a month and continues to receive their salary from the employer, both the employee and the employer must pay social insurance and health insurance contributions as prescribed by law.

- Case 2: If an employee takes sick leave for 14 working days or more in a month, neither the employee nor the employer is required to pay social insurance or health insurance contributions; however, the employee will still be entitled to health insurance benefits.

- Case 3: If an employee takes maternity leave for 14 working days or more in a month, the employee and the employer shall:

+ No social insurance contributions are required during this period; however, this time is still counted as time participating in social insurance for the purpose of calculating social insurance benefits for the employee.

+ Employees are not required to pay health insurance premiums; the Social Insurance agency will pay for their health insurance.

- Case 4: If an employee takes unpaid leave for 14 working days or more in a month, neither the employee nor the employer is required to pay social insurance contributions; this period will not be counted towards social insurance benefits for the employee.

Do employees who are absent from work for 14 days or more need to have their workforce reduced?

Based on the provisions of Clauses 4, 5 and 6 of Article 42 of Decision 595/QD-BHXH dated April 14, 2017, it is as follows:

- Employees who do not work and do not receive wages for 14 working days or more in a month are not required to pay social insurance contributions for that month. This period is not counted towards social insurance benefits.

- Employees who take sick leave for 14 working days or more in a month, as stipulated by the law on social insurance, are not required to pay social insurance, health insurance, unemployment insurance, occupational accident insurance, or occupational disease insurance, but they are still entitled to health insurance benefits.

- If an employee takes maternity leave for 14 working days or more in a month, the employer and the employee are not required to pay social insurance, unemployment insurance, occupational accident insurance, or occupational disease insurance. This period is counted as time contributing to social insurance, but not as time contributing to unemployment insurance, and the social insurance agency will pay health insurance for the employee.

In addition, according to Decision 896/QD-BHXH of 2021, businesses must report increases, decreases, and adjustments to social insurance, health insurance, unemployment insurance, occupational accident insurance, and occupational disease insurance contributions in the following cases:

- Increase the number of new employees;

- Report workforce reductions in cases where employees leave; resign; terminate employment contracts or work agreements;

- Reporting a reduction in contributions due to leave for social insurance benefits (retirement, retention of benefits, sickness, maternity);

- Report a reduction in workload due to unpaid leave, temporary suspension of employment contracts, or work stoppage without pay for 14 working days or more in the month;

- Adjustment of social insurance contributions (change in employee's social insurance contribution salary).

Therefore: If an employee is not working, not receiving a salary, or is on sick leave or maternity leave for 14 working days or more in a month, the enterprise must report a reduction in the number of employees to avoid paying social insurance contributions for that month.

In cases where employees are not working, not receiving a salary, or are on sick leave or maternity leave for less than 14 working days in a month, the enterprise does not need to report the reduction in workforce and can still participate in social insurance contributions as prescribed.

What principles must be followed when paying wages to employees who are absent from work for 14 days or more?

According to Article 94 of the 2019 Labor Code, employers must pay wages directly, in full, and on time to employees. If an employee is unable to receive wages directly, the employer may pay wages to a person legally authorized by the employee.

Employers are prohibited from restricting or interfering with employees' right to decide how to spend their wages; they are also prohibited from forcing employees to spend their wages on purchasing goods or using services from the employer or from other entities designated by the employer.

Source