Following the recent laws and regulations on social insurance (SI) and health insurance (HI), expatriates working in Vietnam meeting the below conditions are subject to compulsory SI and HI contribution:
- Having work permit, or practicing certificates, practicing licenses issued by the local authority; and
- Signing indefinite-term employment contracts or employment contracts valid for one year and above with the employers in Vietnam
The most updated contribution rate of SI and HI and other insurance scheme that employer and foreign employee must participate is summarized in the table below.
|Insurance scheme||Employer||Foreign employee||Total|
|Occupational accident and disease benefit fund||0.5%||–||0.5%|
|Sickness and parental insurance benefit fund||3%||–||3%|
The contribution is made based on the monthly salary and wages paid to the foreign employee.
The social insurance scheme stated above is understood as the retirement (pension) and death insurance benefit fund in accordance with Decree 143, 2018 guiding implementation of compulsory social insurance for foreign employees working in Vietnam.
Law and regulations references
Decree 143/2018/NĐ-CP dated 15 October 2018 regulating Law on Social Insurance and Law on Occupational Safety and Hygiene applying for foreign employees working in Vietnam
Decision 595/QĐ-BHXH dated 14 April 2017 guiding on payment procedure of social security