Official Dispatch 862/BHXH-TST 2024 guiding Social Insurance Agreement between Vietnam and South Korea

To: Social insurance agencies of provinces and centrally-run cities

Pursuant to the Social Insurance Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Republic of Korea; the Prime Minister’s Decision No. 436/QD-TTg dated April 25, 2023, approving the Plan to implement the Social Insurance Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Republic of Korea (RoK); the Administrative Arrangement signed on December 8, 2023 between the Ministry of Labor, Invalids and Social Affairs of the Socialist Republic of Vietnam and the Ministry of Health and Welfare of the RoK to implement the Social Insurance Agreement between the Government of the Socialist Republic of Vietnam and the Government of the RoK; and the implementation agreement signed on January 23, 2024 between the Vietnam Social Security (VSS) of the Socialist Republic of Vietnam and the National Pension Service (NPS) of the RoK on implementing the Agreement and Administrative Arrangement on social insurance regarding social insurance subjects;

Pursuant to the 2014 Law on Social Insurance; the Government’s Decree No. 115/2015/ND-CP dated November 11, 2015, detailing a number of articles of the Law on Social Insurance regarding compulsory social insurance; the Government’s Decree No. 143/2018/ND-CP dated October 15, 2018, detailing the Law on Social Insurance and the Law on Occupational Safety and Health regarding compulsory social insurance for employees being foreign citizens working in Vietnam;

The VSS provides guidance on a number of contents regarding the issuance and reception of Social Insurance Certificates, as well as the suspension of compulsory Social Insurance contributions for Vietnamese employees working in South Korea to implement the Social Insurance Agreement between the Government of the Socialist Republic of Vietnam and the Government of the RoK (hereinafter referred to as the Agreement) as follows:

I. Some terms as prescribed in the Agreement and Administrative Arrangement

1. Dispatched employees

1.1. Dispatched employees as specified in Article 6 of the Agreement:

1.1.1. Vietnamese employees working for employers with Vietnam-based headquarters and participating in Social Insurance in accordance with Vietnamese law that are dispatched by Vietnamese employers to work on behalf of Vietnamese employers on the territory of South Korea. Korean employees working for employers with South Korea-based headquarters and participating in Social Insurance in accordance with Korean law that are dispatched by Korean employers to work on behalf of Korean employers on the territory of Vietnam.

1.1.2. Vietnamese employees working under employment contracts and participating in social insurance in accordance with Vietnamese law that are dispatched by Vietnamese employers to work at a branch or subsidiary of a Vietnamese company in South Korea. Korean employees working under employment contracts and participating in social insurance in accordance with Korean law that are dispatched by Korean employers to work at a branch or subsidiary of a Korean company in Vietnam.

1.2. Duration of dispatch:

The duration of dispatch applies for the first 60 months from the date of dispatch and may be extended (up to a maximum of 36 months) if a worker continues to work for the dispatched employer.

In the case where a worker is dispatched before the effective date of the Agreement, the exemption period shall be counted from the effective date of the Agreement.

In the case where a dispatched worker returns to the home country due to reassignment or termination of the employment contract and is dispatched again, this dispatch shall be considered as a new dispatch, and the exemption period will be recalculated.

2. Locally-recruited employees:

According to Article 7 of the Agreement: When a Vietnamese citizen resides temporarily in the territory of South Korea and is recruited to work in South Korea, the National Pension Law of South Korea shall apply. When a Korean worker resides temporarily in the territory of Vietnam and is recruited to work in Vietnam, the National Pension Law of South Korea shall still apply during this employment period, but not exceeding 60 months, provided that this person is subject to adjustment under Korean law.

3. Certification of social insurance participants according to the Administrative Arrangement

The VSS issues a social insurance certificate for Vietnamese employees participating in social insurance in accordance with Vietnamese law, stating the period of validity of this certificate and serving as a basis for Vietnamese employees to be exempt from participating in social insurance under the law of South Korea.

The NPS of South Korea issues a social insurance certificate for Korean employees participating in social insurance in accordance with Korean law, stating the period of validity of this certificate and serving as a basis for Korean employees to be exempt from participating in social insurance under the law of Vietnam.

II. Issuance of social insurance certificates for Vietnamese employees

1. Subjects eligible for issuance of social insurance certificates

Dispatched employees as specified at Point 1.1, Point 1.2, Clause 1, Section I hereof.

2. Dossiers requesting for issuance of social insurance certificates

2.1. For dispatched employees

- A decision on dispatch;

- For first-time participants or those with Social Insurance numbers but incomplete information: A declaration of participation and adjustment of social insurance and health insurance information (made according to the Form TK1-TS issued with Decision No. 490/QD-BHXH dated March 28, 2023 of the VSS’s General Director)

2.2. For dispatching units

- A declaration of participating units and adjustment of social insurance and health insurance information (made according to the Form TK3-TS issued with Decision No. 490/QD-BHXH dated March 28, 2023 of the VSS’s General Director). It is only required to declare contents and information at Points: [01], [02], [12], [13], [14]. In which, contents at Point [12] must state: Request for issuance of social insurance certificates to employees; contents at Point [13] must state: List of employees attached (clearly stating the quantity of workers);

- In the case where a dispatching unit dispatches employees to work at a branch or subsidiary of such employer in South Korea: Attach dossiers proving that the unit is permitted to operate in South Korea (copies of contracts for winning bids, receiving contract for works and projects in South Korea; copies of investment registration certificates in South Korea);

- Report on the employment situation and list of participants in social insurance, health insurance, unemployment insurance, occupational accident or occupational disease insurance (made according to the Form D02-LT issued with the VSS’s Decision No. 1040/QD-BHXH dated August 18, 2020/ In which, there is a list of dispatched employees.

3. Procedure for issuance of social insurance certificates

3.1. For dispatched employees

Make declarations according to the Form TK1-TS and submit it to dispatching units.

3.2. For dispatching units

Receive dossiers from employees, verify and determine information.

Submit the dossiers specified at Points 2.1 and 2.2 of this section to the social insurance agency where the participation is registered, and pay social insurance premiums for the units directly (paper copies) or online.

3.3. For social insurance agencies

a) Officers/departments in charge of receiving dossiers:

- Receive dossiers, verify and cross-check, transfer to the Departments of Contribution Collection- Social Insurance Book and Health Insurance Card Management to handle. In case of submitting paper dossiers through postal services or at the social insurance agency: scan the original dossiers and update them in the management software.

- Receive social insurance certificates from the Divisions/Departments of Contribution Collection- Social Insurance Book and Health Insurance Card Management to check for the unit.

b) The Divisions/Departments of Contribution Collection- Social Insurance Book and Health Insurance Card Management shall verify, determine the subjects, and cross-check in the management software.

- In the case where a dossier is accurate and complete, enter the data into the management software; sign the social insurance certificate template (made according to the Form VN/KR1), submit it to the director of provincial/district-level social insurance agency for approval, sign, and transfer it to the receiving division/department to return to the unit.

- In the case where a dossier is inaccurate or incomplete, make a written request for supplementing and completing the dossier (made according to the Form No. 02 issued with Decision No. 475/QD-BHXH dated March 27, 2023 of the VSS’s General Director, promulgating the Regulation on organization and operation of the Department of Benefit Claim and Customer Service according to the single-window and inter-agency single-window mechanism in the Vietnam Social Insurance industry), guide the completion of the dossier as prescribed, and transfer it to the department receiving the dossier to return to the unit.

- Regularly, quarterly, annually exchange data tables on social insurance certificates for monitoring, synthesis, and management (made according to the Form VN/KR2).

c) Processing period: No more than 05 days from the date of receiving a complete dossier as prescribed.

3.4. In the case where a worker is dispatched for more than 60 months, the unit shall submit a dossier for issuance of social insurance certificate for the next period (dossier proving the extension of the dispatched worker's period (maximum duration of 36 months) or dossier proving the extension of the contract in the receiving country to the Social Insurance agency); The process and documents for issuing Social Insurance Certificates for subsequent times shall be carried out as for the first issuance of Social Insurance Certificates.

III. Procedure for receiving of social insurance certificates for Korean nationals

1. Subjects eligible for issuance of social insurance certificates by the NPS of South Korea

Dispatched employees and locally-recruited employees as specified in Clauses 1 and 2, Section I.

2. Dossiers

2.1. For employees

- The original copy of social insurance certificates issued by the NPS of South Korea;

- For locally-recruited employees as specified in the Agreement: a declaration of participation and adjustment of social insurance and health insurance information are also required (made according to the Form TK1-TS).

2.2. For units:

- A declaration of participating units and adjustment of social insurance and health insurance information (made according to the Form TK3-TS). It is only required to declare the contents and information at Points: [01], [02], [12], [13]. In which, the contents at Point [12] shall state: dispatched Korean employees/ locally-recruited Korean employees/Korean civil servants and public employees; the contents at Point [13] shall state: List of dispatched/ locally-recruited employees attached (clearly stating the quantity of employees).

- A report on the employment situation and list of participants in social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance (made according to the Form D02-LT). It must specify a list of dispatched employees, locally-recruited employees/Korean civil servants and public employees.

3. Procedure for receiving social insurance certificates for Korean nationals working in Vietnam

3.1. For employees

Submit dossiers as specified at Point 2.1 of this Section to units.

3.2. For units

- Receive dossiers, verify and confirm information.

- Submit the dossiers as specified at Points 2.1 and 2.2 of this Section to the social insurance agency (province/city/district) where the participation is registered, and pay social insurance premiums for the employees directly (paper copies) or online.

3.3. For social insurance agencies

a) Officers/departments in charge of receiving dossiers:

- Receive, check, cross-check the dossiers, and transfer them to the Divisions/Departments of Contribution Collection- Social Insurance Book and Health Insurance Card Management for immediate processing on the same day; scan the original dossiers and update them in the management software;

- Receive social insurance certificates from the Divisions/Departments of Contribution Collection- Social Insurance Book and Health Insurance Card Management for archive as prescribed.

b) The Divisions/Departments of Contribution Collection- Social Insurance Book and Health Insurance Card Management

- Perform inspection and identify subjects:

+ In the case where a dossier is complete and accurate, enter the data into the management software to exempt employees from compulsory social insurance contributions;

+ In the case where a dossier is incomplete and inaccurate: Make a written request for supplementing and completing the dossier (made according to the Form No. 02 issued with Decision No. 475/QD-BHXH dated March 27, 2023 of the VSS’s General Director, promulgating the Regulation on organization and operation of the Department of Benefit Claim and Customer Service according to the single-window and inter-agency single-window mechanism in the Vietnam Social Insurance industry), guide the completion of the dossier as prescribed, and transfer it to the department receiving the dossier to return to the unit.

- Transfer (dossiers) social insurance certificates to the Division/Department in charge of receiving the dossiers;

- Regularly, quarterly, annually compile a list of Korean employees submitting certificates according to the list of receiving social insurance certificates for Korean nationals; and suspending the participation of Vietnamese nationals in social insurance for monitoring and management (using form TNDT/HD).

c) The period for processing dossiers shall not exceed 5 days from the date of receiving complete dossiers as prescribed.

IV. Suspension from payment of compulsory social insurance premiums, certification of periods of compulsory social insurance premium payment for Vietnamese employees working in South Korea under contracts

1. Subjects and time of suspension from payment:

Employees working in South Korea under contracts who are participating in compulsory social insurance in accordance with the 2014 Law on Social Insurance and the Government’s Decree No. 115/2015/ND-CP shall stop paying compulsory social insurance premiums from January 1, 2024. From January 1, 2024, they will continue to pay social insurance premiums in accordance with Korean law, including:

- Employees working in South Korea under contracts on sending of guest workers abroad, signed with enterprises providing the service of sending guest workers or non-business organizations licensed to send guest workers;

- Employees working in South Korea under contracts on sending guest workers abroad to practice for improving their occupational skills, signed with enterprises that send guest workers abroad to practice for improving their occupational skills;

- Employees working in South Korea under contracts signed by employees on their own.

2. Dossiers requesting for suspension from payment of social insurance premiums, certification of periods of social insurance premium payment

2.1. For employees (in the case where the employees pay social insurance premiums directly to the social insurance agency of their place of residence before working abroad):

- Make declarations according to the Form TK1-TS (Declaration of participation and adjustment of social insurance and health insurance information). It is only required to declare the contents and information in Section II at Points: [13], [14], [18]. The contents at Point [18] shall state: stop paying social insurance premiums to participate in social insurance in South Korea;

- An employment contract with a specified term in South Korea or an extended contract accompanied by an extension document or a newly signed contract in South Korea (copy).

2.2. For units (in the case where the employees pay social insurance premiums through the units or enterprises providing the service of sending guest workers):

- A declaration of participating units and adjustment of social insurance and health insurance information (made according to the Form TK3-TS). It is only required to declare the contents and information at Points: [01], [02], [12], [13]. The contents at Point [12] shall state: stop paying social insurance premiums to participate in social insurance in South Korea; The contents at Point [13] shall state: the List of employees who stop paying social insurance premiums in Vietnam attached (clearly stating the quantity of employees);

- An employment contract with a specified term in South Korea or an extended contract accompanied by an extension document or a newly signed contract in South Korea (copy).

- A report on the employment situation and list of participants in social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance (made according to the Form D02-LT), which declares the list of Vietnamese employees who stop contributions to participate in social insurance in South Korea.

3. In the case where the employees specified at Point 1 of this Section have paid social insurance premiums from January 1, 2024, the social insurance agency shall refund the social insurance premiums paid from January 1, 2024 as prescribed.

4. The social insurance agency shall stop collecting compulsory social insurance premiums, confirm the periods of social insurance premium payment, return the social insurance booklet, and refund (if any) for the employees working in South Korea specified at Points 1 and 3 of this Section in accordance with the guidance in the VSS’s Decision No. 490/QD-BHXH dated March 28, 2023.

5. Regularly, quarterly, annually: Compile a list of employees working in South Korea stopping social insurance premium payment according to the template of the List of receiving social insurance certificates for Korean nationals; suspending participation in social insurance for Vietnamese nationals for monitoring and management.

V. Organization of implementation

1. Units under the VSS

1.1. The Department of Contribution Collection and Department of Social Insurance Book and Health Insurance Card shall guide, inspect and urge social insurance agencies of provinces and centrally-run cities to implement the Agreement, and report the results of implementation in Sections II, III and IV hereof.

1.2. The Information Technology Center shall:

- Adjust software for managing contribution collection, social insurance book and health insurance card, manage dispatched and locally-recruited Korean employees, Korean civil servants and public employees (if any), issue and receive social insurance certificates (VN/KR1), and agreement data exchange form (form VN/KR2) for social insurance agencies at all levels to implement according to regulations, including automatic warnings for employees whose exemption period is about to expire;

- Complete and upgrade the Korean version of the VssID application, support Korean employees and Korean FDI enterprises.

1.3. The Information and Communication Center shall develop information contents to propagate and disseminate the contents of the Agreement, Administrative Arrangement, and the implementation of the Agreement, to units, enterprises, employees and relevant agencies, and organize the implementation of such contents.

1.4. The Vietnam Social Security Administration Office shall announce the administrative procedures for issuing social insurance certificates to Vietnamese employees working in South Korea; receive social insurance certificates from Korean employees working in Vietnam.

1.5. The Department of International Cooperation shall:

Act as the focal point for receiving and reporting inadequacies, difficulties and problems arising during the implementation to promptly report to competent authorities for consideration and decision;

Act as the focal point for synthesizing, exchanging and providing information on implementing the Agreement between the VSS and the NPS of South Korea.

1.6. The Customer Care and Support Service Center shall:

- Coordinate customer care activities, support, advise, and respond to customer requests related to the contents of the Agreement, Administrative Arrangement and agreement to implement the Agreement;

- Support and guide Korean employers and employees in Vietnam to use the Korean version of the VssID application.

1.7. The Legal Department shall assume the prime responsibility for, and coordinate with relevant units in, reviewing current legal documents to propose competent agencies to amend, supplement, abolish or promulgate new legal documents, ensuring the implementation of the Agreement and facilitating the implementation of the signed Agreement and Administrative Arrangement.

2. Social insurance agencies of provinces and centrally-run cities shall:

- Review, guide and urge units that employ and manage Korean employees and employees participating in relevant compulsory social insurance to implement the Agreement and the contents mentioned in Sections II and III hereof;

- Notify directly to employees, or their relatives (in the case where the employees working in South Korea pay social insurance premiums directly to the social insurance agency), or enterprises providing the service of sending guest workers or non-business organizations licensed to send guest workers (in the case where the employees working in South Korea under contracts pay social insurance premiums through enterprises/service providers), of the time to stop paying social insurance premiums in Vietnam to continue participating in social insurance in South Korea under the Agreement stated in Section IV hereof;

- Coordinate with relevant local agencies and units to widely inform and propagate on the mass media about social insurance policies for Vietnamese employees working in South Korea under contracts;

- Update the results of implementation of the contents stated in Section II and III hereof into the software for management and monitoring (Form VN/KR1, form VN/KR2, form TNDT/HD).

These above-mentioned contents provide the guidance for implementing the Social Insurance Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Republic of Korea. Social insurance agencies of provinces and centrally-run cities shall promptly report any problems arising during the implementation to the VSS for consideration and resolution./.

For the General Director

The Deputy General Director

TRAN DINH LIEU