The 2014 Law on Social Insurance adds three more groups of subjects to be covered by compulsory social insurance, among of them, inclusive of foreigners working in Vietnam and possessing work permits, practice certificates, or licenses issued by competent Vietnamese authorities. It means that foreigners working in Vietnam with work permits or practice certificates or practice licences granted by competent Vietnamese agencies will be covered by compulsory social insurance as from January 1, 2018.
Specifically, the foreign employee will have to pay 8% of his/her monthly wage while his/her employer will have to pay 18% of the employee’s full pensionable wage, making a total contribution of 26% to the social insurance fund, based on their wage, allowances and other additional amounts stated in their labour contract.
Under the Vietnamese law, the employees are also be provided by their employer with information on the annual payment of social insurance premiums once every six months, and have their annual social insurance premium payment certified by the social insurance agency annually.
According to a Government decree N0: 143/2018/NĐ-CP dated Oct 15, 2018 on compulsory social insurance for foreigners working in Vietnam, from Jan 1, 2022foreigner workers will have to take part in all the five social insurance regimes:
- Pension and sickness
- Maternity
- Occupational accidents
- Retirement
- Death.
