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| Some things to know when employees are off work for 14 days or more. (Internet source) |
Do employees who are off work for 14 days or more have to pay social insurance, health insurance, and unemployment insurance?
Pursuant to Clauses 4, 5 and 6, Article 42 of Decision 595/QD-BHXH dated April 14, 2017, in case an employee is absent from work for 14 days or more:
- Case 1: If an employee is absent from work for 14 working days or more in a month and still receives salary paid by the employer, the employee and the employer must pay social insurance and health insurance according to regulations.
- Case 2: If an employee takes sick leave for 14 working days or more in a month, the employee and the employer do not have to pay social insurance and health insurance; but the employee will still enjoy 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 must:
+ No need to pay social insurance; but this period is still counted as social insurance participation period to calculate social insurance benefits for employees.
+ No need to pay health insurance, but the social insurance agency will pay health insurance for employees.
- Case 4: If an employee is off work and does not receive salary for 14 working days or more in a month, the employee and the employer do not have to pay social insurance; this period is not counted for social insurance benefits for the employee.
Do employees who are absent for 14 days or more have to report a reduction in workforce?
Pursuant to the provisions of Clauses 4, 5 and 6, Article 42 of Decision 595/QD-BHXH dated April 14, 2017:
- Employees who do not work and do not receive salary for 14 working days or more in a month do not pay social insurance for that month. This period is not counted for social insurance benefits.
- Employees who take sick leave for 14 working days or more in a month according to the provisions of the law on social insurance are not required to pay social insurance, health insurance, unemployment insurance, occupational accident insurance, and occupational disease insurance, but 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 employee do not have to pay social insurance, unemployment insurance, occupational accident insurance, or occupational disease insurance. This period is considered the period of social insurance payment, not the period of unemployment insurance payment, and the social insurance agency will pay health insurance for the employee.
In addition, according to the provisions of Decision 896/QD-BHXH in 2021, enterprises must report increases, decreases, and adjustments to social insurance, health insurance, unemployment insurance, occupational accident and disease insurance contributions in the following cases:
- Increase new labor;
- Report on reduction of labor in cases of employees moving away; quitting jobs, terminating labor contracts, work contracts;
- Report reduction due to social insurance leave (retirement, reservation, sickness, maternity);
- Report reduction due to unpaid leave, suspension of labor contract, unpaid work stoppage of 14 working days or more in a month;
- Adjust social insurance payment (employee changes salary to pay social insurance).
Thus: In case an employee does not work, does not receive salary or takes sick leave or maternity leave for 14 working days or more in a month, the enterprise must report a reduction in labor force to avoid paying social insurance for that month.
In case an employee does not work, does not receive salary or takes sick leave or maternity leave for less than 14 working days in a month, the enterprise does not need to report a reduction in labor force and still participates in social insurance according to regulations.
What principles must be followed when paying wages to employees who are off work for 14 days or more?
Pursuant to Article 94 of the 2019 Labor Code, employers must pay wages directly, fully, and on time to employees. In case employees cannot receive wages directly, employers may pay wages to a person legally authorized by the employee.
Employers must not restrict or interfere with employees' right to decide how to spend their salaries; must not force employees to spend their salaries on purchasing goods or using services of the employer or of other units designated by the employer.
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