A probationary contract is not required to pay social insurance contributions if the contract does not mention social insurance contributions, unlike a 2020 employment contract.
However, if the probationary period is stipulated in the employment contract and that contract is subject to mandatory social insurance participation, then mandatory social insurance contributions must be paid for the specific probationary period as follows:
Article 4 of Decision 595/QD-BHXH stipulates the subjects required to participate in compulsory social insurance:
“1.1. Employees working under indefinite-term employment contracts, fixed-term employment contracts, seasonal employment contracts, or contracts for a specific job with a term of at least 03 months but less than 12 months, including employment contracts signed between the employer and the legal representative of a person under 15 years of age as stipulated by labor law;
1.2. Employees working under fixed-term employment contracts of 1 month to less than 3 months (effective from January 1, 2018);
... "
Article 26 of the 2012 Labor Code stipulates... “Employers and employees may agree on a probationary period, outlining the rights and obligations of both parties during this period. If a probationary period is agreed upon, the parties may enter into a probationary employment contract. The content of the probationary employment contract includes the provisions stipulated in points a, b, c, d, e, g, and h of Clause 1, Article 23 of this Law.”
Article 23 of the 2012 Labor Code stipulates that a labor contract must contain the following main contents:
a) Name and address of the employer or their legal representative;
b) Full name, date of birth, gender, residential address, national identity card number or other legal document of the employee;
c) Job title and workplace;
d) The duration of the employment contract;
e) Salary level, method of payment, payment schedule, salary allowances and other additional benefits;
f) Promotion and salary increase system;
g) Working hours, rest periods;
h) Providing personal protective equipment for workers;
i) Social insurance and health insurance;
j) Training, professional development, and upgrading vocational skills.
Therefore, based on the above provisions, probationary contracts are not subject to social insurance contributions because they do not mention social insurance contributions like employment contracts. However, if the probationary period is specified in an employment contract that falls under the category of mandatory social insurance participation, then mandatory social insurance contributions must be paid for the entire probationary period.
The salary or wage used as the basis for social insurance contributions is the salary or wage stated in the employment contract, as guided by Official Letter No. 2447/LĐTBXH-BHXH dated July 26, 2011, from the Vietnam Social Insurance.
View full text