On 15 of October 2018 the Government promulgated Decree No.143/2018/NĐ-CP regulated on the compulsory social insurance regime of foreign laborers who are working in Vietnam. We would like to show you a number of remarkable regulations of this Decree as follows:

1. Who of foreign employees shall have to participate in compulsory social insurance

Since 01/12/2018, employees who are foreign citizens working in Vietnam, including the person getting work permit or practice license issued by the competent authority of Vietnam and working under the indefinite labor contract or definite labor contract from 01 year or more for the employer in Vietnam.

 

However, for the foreign employees moving within the enterprise according to the provisions of Decree No.11/2016/ND-CP on foreigners working in Vietnam and laborers who have reached the prescribed retirement age the provisions of the Labor Code are not subject to compulsory social insurance.

 

2. Type of social insurance which the foreign employees have to participate

The foreign employees have to participate in the following types of compulsory social insurance:

+ Sickness;

+ Maternity;

+ Labor accident, occupational disease;

+ Pension, death.

The condition for enjoying social insurance benefits; enjoyment level; time for enjoying social insurance regime above are conformed with the relevant regulations of Law on social insurance, Law on labor safety, sanitation and the guidance documents.

3. Level of premium, salary monthly for social insurance

    1. As for employee
  1. From 01 January 2022, the employee shall have to pay 8% of salary monthly for the pension, death fund.
  2. The foreign employee who are not working and not enjoy salary duration 14 days forward in a month shall not be required to pay premium for that month, however this duration shall not be calculated for enjoying the social insurance benefit except for leaving for maternity.
    1. As for employer

The employer has to pay into social insurance fund based on the monthly salary fund of employees as follows:

+ Sickness and maternity (3%);

+ Labor accident, occupational disease (0,5%);

+ From 01/01/2022 for pension, death (14%).

The monthly salary for paying social insurance shall be salary, salary allowance and other supplemented amounts according to laws of labor. If salary is 20 times higher than base salary then salary monthly for social insurance shall be 20 times of base salary.

Step, procedure for participation, enjoyment of social insurance shall comply with regulations of Law on social insurance, Law on labor safety, sanitation and the guidance documents.

Employees who enter into labor contracts with many employers and are subject to the compulsory social insurance, the employee and the employer only pay social insurance for the first contract. Particularly, participating in the labor accident and occupational disease insurance fund, the employer must pay according to each labor contract already signed.

4. Persons who are enjoying monthly pensions or social insurance allowances no longer reside in Vietnam

The person who enjoying pension, monthly social insurance benefits when not residing in Vietnam can authorize other people to receive pensions and social insurance benefits. Employees are entitled to a one-time allowance if they wish to do so under the provisions of the Law on social insurance.

This Decree comes into force and effect from 01 December 2018, particularly, regulations on pension, death in Decree shall be effective on 01 January 2022.

In case of difference and/or discrepancy of the same issue in this Decree and the international treaty which Vietnam is member then the relevant regulations of international treaty shall prevail.