The 2014 Law on Social Insurance adds three more groups of subjects to be covered by compulsory social insurance, among 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 licenses granted by competent Vietnamese agencies will be covered by compulsory social insurance 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 labor contract.
Under Vietnamese law, the employees are also 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.
VIVA Business Consulting is offering free counsel and supporting to foreign investors and chief of representative office in Vietnam. Under our management, the any of your local required compliance procedures shall be reviewed and managed properly.
MANAGE AND PARTICIPATE IN THE COMPULSORY INSURANCES
- Cases that the employees who are foreign nationals working in Vietnam shall be required to participate in the compulsory SI program.
- Cases that the foreign employees referred above shall be excluded from participation in the compulsory social insurances.
- 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.
- Manage your total compulsory social insurances contribution rates are 30%, consist of:
- The employee side shall, on a monthly basis, make a total SI contribution accounting for 9,5% of monthly pay (8% into the retirement and death benefit fund and 1,5% into the sickness and parental insurance benefit fund)
- The employer side shall, on a monthly basis, make a SI contribution accounting for 20,5% in proportion to the employee’s payroll in the SI payment month (14% into the retirement and death insurance benefit fund, 3% into the sickness and parental insurance benefit fund, 5% into the occupational accident and disease benefit fund, 3% into the health medical fund).
CASES OF THE ONE-OFF SOCIAL INSURANCE REFUND
Cases of the one-off Social Insurance benefit entitlement for foreign workers in Vietnam: Employees who are foreign nationals working in Vietnam shall be required to participate in the compulsory Social Insurance and if those employees wishes to receive the one-off payment, he/she shall be entitled to the one-off benefit entitlement provided that: He/she reaches the retirement pension entitlement requirements age, but has not yet reached the period of 20 years of SI contribution; or He/she is currently suffering from one of the deadly diseases regulated by the Ministry of Health; or He/she has fully satisfied retirement pension entitlement requirements, but has discontinued residing in Vietnam; His/her employment contract is terminated, or his/her labor permit, practicing certificate or practicing license expires without being permitted for renewal.
Cases of the one-off Social Insurance refund for Foreign Employees in Viet Nam: Employees who are foreign nationals working in Vietnam shall be required to participate in the compulsory Social Insurance and if those employees wishes to receive the one-off payment, he/she shall be entitled to the one-off benefit entitlement provided that:
- He/she reaches the retirement pension entitlement requirements age, but has not yet reached the period of 20 years of SI contribution;
- He/she is currently suffering from one of the deadly diseases regulated by the Ministry of Health;
- He/she has fully satisfied retirement pension entitlement requirements but has discontinued residing in Vietnam; His/her employment contract is terminated, or his/her labor permit, practicing certificate or practicing license expires without being permitted for renewal.
ABOUT VIVA BUSINESS CONSULTING
The local expert for local business procedures in Vietnam since 2006
VIVA is the famous expert in Vietnam market entry procedures, tax management, employment relations, corporate finance and local business procedures at local competent state agencies.
VIVA focuses on business compliance, since 2006, we keep supporting local and FDI enterprises in fully complying with local business laws and regulations, in effective and optimal ways, identifying and preventing most of the common risks in advance.
VIVA BUSINESS CONSULTING, the one-stop solution for foreign investors and experts in Vietnam about the required business compliance procedures, based on our unique combination of local expertise and global experiences. Our staying power is thanks to our deep insights, and consistent backgrounds and practice in local business laws and regulations.
VIVA is proudly a 100% Vietnamese consulting company and has been chosen by thousands of investors and FDI companies as their confident partner and successful business in Vietnam. We are still here, since 2006 because of our thousands of satisfied clients and our employees. Our staying power is a testament to the professional resources, and so much more.
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.
The insights and consistent backgrounds in Business Laws – Accounting and Corporate Finance – Tax Management – Labor Relations and Payroll – Serectarial and consistent with our exclusive standard operation processes, consisting of consultation – implementation – pratice operation help us fully protect client interests as one-stop solution.
- An email and a phone call from us
- A copy of our Confidentiality Commitment
- An appointment with our experts
- A suitable solution for your concern
“If you ask any successful businessperson, they will always have had a great mentor at some point along the road.”
Other compliance procedures for Investor, legal REP and chief REP in Vietnam
- Other local procedures for foreigners in Vietnam
- Manage your work permit in Vietnam
- Manage your personal income tax and tax planning
- Professional employee profile and establish local employment relations
Read more:
- Compulsory insurance in Vietnam: What you need to know
- Compulsory social insurance for foreign employees: new regulations from 2022
- Chief of representative office or head of branch in Vietnam: role and responsibility
- Temporary residence card in Vietnam: what you need to know
- Investment visa in Vietnam: type and time limits
- Managing labor relations for expats in Vietnam
- Work permit in Vietnam: regulations and guidance
- Expats in Vietnam: work permit exemption – revocation
- Investment in Vietnam: market entry procedures
