What type of contract do you sign without having to pay social insurance?

According to Clause 1, Article 2 of the Law on Social Insurance 2014, compulsory social insurance payment only applies to work contracts and labor contracts with a term of 1 full month or more.

Therefore, to avoid having to pay mandatory social insurance, employees and businesses need to choose to sign one of the following types of contracts:

(1) Sign a labor contract with a term of less than 01 month.

If Clause 1, Article 2 of the Law on Social Insurance 2014 stipulates that employees working under labor contracts with a term of 1 full month or more are subject to compulsory social insurance participation, on the contrary, employees Workers and businesses only need to sign a labor contract with a term of less than 1 month to not have to pay insurance.

Based on Article 14 of the Labor Code 2019, labor contracts of less than 01 month can be signed in written form or electronic data, and can even be agreed verbally.

However, this type of contract can only be signed a maximum of 02 times according to Point c, Clause 2, Article 20 of the Labor Code.

(2) Sign a probationary contract.

This contract is signed when the employee and employer have an agreement on trial employment. According to Clause 1, Article 2 of the Law on Social Insurance 2014, compulsory social insurance payment only applies to labor contracts. If you sign a probationary contract, you will not need to pay social insurance.

(3) Sign a collaborator contract or employment contract.

The nature of the above two types of contracts is a service contract, not a labor contract, so the parties do not have to register for compulsory social insurance.

(4) Sign a labor contract that is not full-time and has a limit on working hours per month.

According to Clause 3, Article 32 of the Labor Code 2019, employees who work part-time are entitled to the same benefits as full-time workers. However, in case you do not work and do not receive salary for 14 working days or more in a month, social insurance payments will not be counted for that month.

Therefore, in order to not have to pay mandatory social insurance, the total non-working time in a month for part-time employees must be 14 working days or more.