Do collaborators have to pay social insurance?

However, a frequently asked question is: Does a collaborator contract have to pay social insurance (SI)? This article will help you better understand the legal regulations related to this issue.

First, it is important to understand the nature of a freelance contract. This is a type of contract between an individual and an organization, in which the individual is assigned to perform a certain job with the aim of meeting the temporary needs of the organization without having to adhere to strict working hours like a formal employee. These jobs are often seasonal, short-term or project-specific.

According to the Law on Social Insurance of Vietnam, subjects participating in compulsory social insurance are employees working under indefinite-term labor contracts or labor contracts with a term of 1 month or more.

Collaborators are not required to participate in social insurance according to current regulations.

A freelance contract is often considered a service contract or a form of freelance labor contract, not a labor contract under the Labor Code. For this reason, freelancers are not required to participate in social insurance under current regulations.

In fact, collaborators can voluntarily participate in social insurance if they wish to have a pension or health insurance. However, this is a completely voluntary choice of the collaborator and is not required by law.

Signing a freelance contract also has certain benefits and limitations. The benefit is that freelancers are not bound by time and working space, which is convenient for those who want to balance life and work. Being a freelancer allows each individual to experience many different working environments, thereby improving skills and expanding their network of relationships.

The downside is that without mandatory insurance, freelancers may face financial risks when they fall ill. Lacking protection from labor laws, freelancers may face problems when contract disputes arise.

In conclusion, although the collaborator contract does not require social insurance, participating in voluntary insurance is still a choice worth considering for many people to protect their personal rights. Both businesses and employees need to understand the legal regulations to be able to make reasonable decisions and protect their rights in the best way.

Grasping the right information not only helps each individual to be more confident in the working process but also helps businesses develop sustainably in the modern business environment.

BAO HUNG

Source: https://vtcnews.vn/hop-dong-cong-tac-vien-co-phai-dong-bhxh-khong-ar904843.html