Compulsory insurance for foreigners working in Vietnam

Bởi Trần Thu Thủy - 28/05/2020
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Currently, foreigners working in businesses, agencies and organizations in Vietnam is become more common. To ensure their benefits, some foreign workers need to pay social insurance.

Article made by: Lawyer Huynh Thu Huong – Everest Law Firm – Call Center (24/7): 1900 6198

Cases of foreigner working in Vietnam participating in social insurance

Possess a work permit or a practicing certificate or a license issued by a Vietnamese competent authority

Having an indefinite-term labor contract, a definite-term labor contract of full 1 year or more with an employer in Vietnam.

The employee is not old enough to retire

Note:

The employee is not subject to compulsory social insurance in one of the following cases:

Employees reach the retirement age (60 years old for men and 55 years old for women)

The employee is the manager, executive director, expert and technical worker of a foreign enterprise that has established a commercial presence on the territory of Vietnam, temporarily moving within the enterprise to present have a commercial presence in Vietnam and have been recruited by a foreign enterprise for at least 12 months earlier.

If an employee enters into multiple labor contracts with different employers and is subject to compulsory social insurance, the employee shall only pay social insurance premiums for the first labor contract entered into. employers must contribute to the labor accident and occupational disease insurance fund under each signed labor contract.

Compulsory social insurance regimes that employees must participate

Sicknesses; maternity; labor accident and occupational disease insurance; retirement and survivors.

Social insurance premium rates

For workers

From December 1, 2018 to December 31, 2021, employees do not have to pay compulsory social insurance

From 1 January 2022, monthly 8% of the monthly salary paid into the retirement and survivorship fund monthly

For employers

From December 1, 2018 to December 31, 2021, monthly, employers are responsible for paying compulsory social insurance premiums on their monthly salary fund of social insurance payment: 3% into the sickness and maternity fund; 0.5% into the fund for labor accidents and occupational diseases

From January 1, 2022, employers will contribute monthly to the employee's monthly salary fund for social insurance payment: 3% into the sickness and maternity fund; 0.5% into the fund for labor accidents and occupational diseases; 14% into pension and survivors.

Documentation involved

For workers

Declaration of provision and change of information of participants of social insurance and health insurance (Form TK1-TS);

For the beneficiary of higher health insurance benefits: Proof of identity.

Note: Writing the full name, gender, nationality on the forms in international phonetic scripts In case there is an attached file to change information, the file issued by a foreign agency must be translated into Vietnamese and authenticated according to the provisions of Vietnamese law.

For employers

Declaration of provision and change of information of entities participating in SOCIAL INSURANCE and Health Insurance (Form TK3-TS);

List of employees participating in social insurance, health insurance and unemployment insurance (Form D02-TS);

List of documents serving as a basis for entitlement to higher health insurance benefits (Section II, Appendix 03).

Place of payment of social insurance

The unit whose head office is located in any province shall register to participate in paying social insurance in that province according to the decentralization of the provincial social insurance agency. (Registering social insurance management agencies according to geographical areas registered on the business registration certificate).

The branch of the enterprise pays social insurance in the area where the business license is issued to the branch.

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  1. Articles in the legal field are made by lawyers, experts of Everest Law Firm for the purpose of scientific research or dissemination of legal knowledge, absolutely not for commercial purposes.
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