New Compulsory social insurance for foreign employees or expats in Vietnam



Employees who are foreign nationals working in Vietnam shall be required to participate in the compulsory social insurance (SI) program if they obtain work permits, practicing certificates, practicing licenses issued in Vietnam, indefinite-term employment contracts or employment contracts valid for at least one year with employers in Vietnam.

BASED ON DECREE

No. 143/2018/ND-CP - Hanoi, October 15, 2018

WHO SHALL BE REQUIRED TO PARTICIPATE IN THE COMPULSORY SOCIAL INSURANCE IN VIETNAM?

Employees who are foreign nationals working in Vietnam shall be required to participate in the compulsory social insurance (SI) program if they obtain work permits, practicing certificates, practicing licenses issued in Vietnam, indefinite-term employment contracts or employment contracts valid for at least one year with employers in Vietnam.

Employers participating in the compulsory social insurance, including foreign or international bodies or organizations operating within the territory of Vietnam; enterprises, cooperatives, single-person households, cooperative associations, other organizations, and persons who are licensed to do business as per laws, shall be required to participate in the compulsory social insurance if they hire and employ personnel to work under employment contracts.

WHO SHALL BE EXCLUDED FROM PARTICIPATION IN THE COMPULSORY SOCIAL INSURANCE

Employees who are foreign nationals working in Vietnam shall be excluded from participation in the compulsory social insurance as provided herein if:

  • They are intra-company transferees as stipulated in the law.

  • They reach retirement age under the Labor Code.


CONTRIBUTION RATES AND EFFECTED TIME

For the employees:

About the contribution rates and methods from January 1, 2022, the employees who are foreign nationals working in Vietnam shall be required to participate in the compulsory social insurance (SI) program shall, on a monthly basis, make an SI contribution accounting for 8% of his/her monthly pay to the retirement and death benefit fund.

For the employers:

The employer, on a monthly basis, makes social insurance (SI) contribution in proportion to the employee’s payroll in the SI payment month as follows:

  • 0.5% of the abovementioned payroll paid into the occupational accident and disease benefit fund;

  • 3% of the abovementioned payroll paid into the sickness and parental insurance benefit fund;

  • 14% of the abovementioned payroll paid into the retirement and death insurance benefit fund, in effect from January 1, 2022.

OTHERS

The employee who neither works nor receives salaries or wages for a period of at least 14 working days in each month shall not be bound to pay the SI contribution in that month. This month shall not be taken into account to determine entitlement to SI benefits, except for parental leaves.

The employee who enters into multiple employment contracts with more than one employer and is required to participate in the compulsory social insurance (SI) program, both the employee and the employer shall only have to pay SI contributions as agreed upon in the first employment contract. If wishing to participate in the occupational accident and disease insurance fund, the employee shall be required to pay SI contributions per each employment contract

If the insured employee who is currently entitled to monthly retirement pensions and SI benefits is not residing in Vietnam, he/she may authorize another person to receive these amounts. The one-off benefit payment in his/her wish shall be approved.

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