COMPULSORY INSURANCES FOR FOREIGNERS IN VIETNAM

Compulsory insurance for foreigners in Vietnam

COMPULSORY INSURANCES FOR FOREIGNERS IN VIETNAM

(Last Updated On: October 4, 2021)
Compulsory insurance for foreigners in Vietnam

Compulsory insurance for foreigners in Vietnam

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 payersSocial insuranceHealth insuranceUnemployment insuranceTrade Union feeTotal
Employee8%1.5%1%10.5%
Employer17.5%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.

 

 

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 entrepreneurs’ community.
  • We have been successfully providing service for thousands of leading companies from Hong Kong, Japan, US, EU, Singapore, India, China, Korea…. in forms of FDI companies, Foreign representative offices, Foreigner working in Vietnam, Vietnamese SMEs, Chief Operation Officers.
  • VIVA's logo is our Brand name, our signature, it states our faith - independence - transparence - and loyalty for client's interest. The signature is commitment and honor on our outstanding expertise and professionalism. It is the symbol of good standing for our clients whenever they are doing business with customers, partners, the local competent state agencies...

 

Chat with Consultants


 

Read more:

Full Compliance Procedures For Foreigners Who Are Working In Vietnam

Social Insurance For Foreigner in Vietnam – New Regulations From 2022

Three Key Points On Salary And Compulsory SI From Jan 2018

Penalties For Administrative Violations Against Regulations On Compulsory SI In Vietnam



error: Alert: Content is protected !!