NO MANDATORY SOCIAL INSURANCE FOR PROBATIONARY AND PART-TIME EMPLOYMENT

For probationary positions or part-time jobs, both enterprises and employees often wonder whether mandatory social insurance must be contributed. Pursuant to Decree 158/2025/ND-CP providing detailed guidance on the implementation of the 2024 Law on Social Insurance, W&A provides the answer in this newsletter, along with a brief analysis of notable provisions that need attention, especially for HR and finance–accounting departments during implementation at the enterprise.

LEGAL PROVISIONS

1. Probationary contracts are not subject to mandatory social insurance contributions

Decree 158 stipulates: “Employees working under a probationary contract in accordance with labor laws are not subject to participation in mandatory social insurance.”

Accordingly, if an employee only signs a probationary contract (not an official labor contract), the enterprise is not required to contribute to social insurance, even if the contract term is one month or more.

This provision helps distinguish the cases where the employee and the employer agree under another name, but the content reflects paid employment under the management, direction, and supervision of one party—such cases are still subject to mandatory social insurance.

2. Part-time workers earning less than the regional minimum wage are not subject to mandatory social insurance

For part-time jobs where employees are mostly students, such as collaborators, short-term jobs, hourly/daily jobs... if the monthly salary is lower than the regional minimum wage prescribed by the Government, the enterprise is not obligated to contribute to mandatory social insurance.

For non-full-time labor contracts such as part-time jobs, the salary used as the basis for social insurance contribution is as follows:

• Monthly-based wage agreement: monthly wage agreed upon in the labor contract.

• Hourly-based wage agreement: monthly wage = hourly wage × number of working hours in the month, as agreed in the labor contract.

• Daily-based wage agreement: monthly wage = daily wage × number of working days in the month, as agreed in the labor contract.

• Weekly-based wage agreement: monthly wage = weekly wage × number of working weeks in the month, as agreed in the labor contract.

In addition, Decree 158 also includes new provisions that enterprises should note:

3. Salary used as the basis for mandatory social insurance contribution

According to point b clause 1 Article 31 of the 2024 Law on Social Insurance, the monthly salary includes the salary as follows:

• Job or title-based salary: calculated by time (monthly) of the job or title according to the salary scale and payroll built by the employer, agreed in the labor contract;

• Salary allowances: to compensate for working conditions, job complexity, living conditions, and labor attraction factors not yet or not fully covered in the salary; agreed in the labor contract; excludes irregular salary allowances depending on or fluctuating according to the employee’s productivity, work process, and performance quality;

• Other supplementary payments: specified amounts together with salary agreed in the labor contract, and paid regularly and stably in each pay cycle; excludes other irregular supplementary amounts that depend on or fluctuate based on employee productivity, working process, and performance quality.

4. Basis for foreign currency salary conversion for social insurance contribution

If the salary recorded in the labor contract and paid to the employee is in foreign currency, the salary used as the basis for mandatory social insurance contribution shall be converted into Vietnamese Dong (VND).

Conversion basis: the average buying exchange rate for bank transfers of Vietnamese Dong against foreign currencies published by four State-owned commercial banks at the beginning of the period: January 2 and July 1.

Note: if those days fall on a public holiday or non-working day, the rate of the next working day shall apply.

5. Time limit for retroactive contribution of mandatory social insurance without interest for late payment

Previously, the time limit for retroactive contribution was 6 months from the date of the decision on salary increase for social insurance contribution.

From July 1, 2025, the new time limit is until the last day of the month following the month in which the decision on salary adjustment is issued.

6. Temporary suspension of mandatory social insurance contribution when employees are suspended from work

If the employee is suspended from work for 14 working days or more in a month, the contribution of social insurance shall be handled as follows:

• If after the suspension period, the employer fully pays the employee for the suspension period:

  • Retroactive contribution of mandatory social insurance must be made for the suspension period.

  • Time limit for retroactive payment: no later than the last day of the month following the month the suspension ends.

  • Amount to be contributed: based on the applicable rate and method under the Law, corresponding to the number of months suspended.

  • Late contribution beyond the time limit: may be considered either late payment or evasion of contribution, and shall be subject to corresponding penalties.

• If the employee is not fully paid for the suspension period, then no retroactive contribution of mandatory social insurance is required for such period.

W&A’S CONCLUSION

The 2024 Law on Social Insurance and Decree 158 have introduced many new and progressive provisions. Enterprises, together with HR and finance–accounting departments, should pay close attention to updates on the latest social insurance regulations. At the same time, enterprises should review their standard labor contract templates to ensure compliance with the law, thereby safeguarding the interests of both the enterprise and employees.

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