In accordance with the Law on Social Insurance (SI), which went into force in early 2018, the employers and employees have to contribute compulsory insurance and trade union as follows:
| The payers | Social insurance | Health insurance | Unemployment insurance | Trade Union fee | Total |
|---|---|---|---|---|---|
| Employee | 8% | 1.5% | 1% | 10.5% | |
| Employer | 17.5% | 3% | 1% | 2% | 23.5% |
TOTAL: 34% ON THE SALARY AND WAGES
- For the employer: 23,5%
- For the employee: 10,5%
The cap of the salary used as the basis for social insurance contribution is: 29.800.000VND. It means, in case the salary exceeds the cap, the maximum contribution amount will be: 34% x 29.800.000VND only.
Besides the compulsory insurance, you shall declare and pay PIT 20% on local incomes for non-resident expats and pay progressive tax rates from 5% to 35% depending on income levels for resident expats and local employees. The representative office only has to pay PIT.
Foreign workers in Vietnam with a work permit, or a practice certificate or license also going have to contribute health insurance and social insurance. The basis for social insurance contribution will be broadened to include salaries, allowances and other supplementary amounts.
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Who we are?
- VIVA is a business consulting company, specializes in business compliance procedures according to local business laws and regulations since 2006. VIVA has been continuously trusted by thousands of well-known clients since 2006.
- The insights and consistent backgrounds in Business Laws – Accounting and Corporate Finance – Tax Management – Labor Relations and Payroll – Secretarial services help us build trust and confidence in the entrepreneur's community.
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- Services for Expats in Vietnam: Visa, Work Permit, Temporary residence card, Compulsory Insurances, Personal Income tax, Labor contracts, Employment Records and Relations, Other Secretarial Services.
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- Services for a company in Vietnam: Setting up a new company and licensing service. Business records management. Daily business transactions management. Tax management. Accounting and financial statements. Employments, payroll and compulsory insurances. Representative on behalf of competent state agencies for any business administration procedures.
Motivated by our core values of ceaseless improvement, our great insights in local business culture and regulations, as well as the exclusive services, promise to offer you one-stop and tailored-made solutions that optimize every of your business in Vietnam in the lawful manner.
We are looking to be your valued business partner and resources in Vietnam as we have been choosing since 2006.
VIVA not only manage business required procedures by laws but firstly places client’s compliance and good standing, in the optimal methods when offering any solution, and integrated with our intensive resources that allow us to prevent most of the risks in advance, create more benefits, advantages and business inspiration for entrepreneurs.
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Read more:
- Compulsory social insurance for foreign employees: new regulations from 2022
- Full compliance procedures for foreigners who are working in Vietnam
- Social insurance for foreigner in Vietnam
- Three key points on salary & compulsory social insurance
- Penalties for administrative violations against regulations on compulsory social insurance in Vietnam
- Payroll service and manage employment relations
