Vietnam Social Insurance (BHXH): Complete Guide for Foreign Teachers

Foreign teachers in Vietnam must participate in compulsory social insurance (BHXH) if they work under a labor contract of 1 year or more and hold a valid work permit. The system requires employee contributions of 8% and employer contributions of 17.5% of monthly salary for social insurance, plus an additional 4.5% total for health insurance (1.5% employee, 3% employer), creating a combined mandatory insurance burden of 30%. The Social Insurance Law 2024, effective July 1, 2025, reduced the minimum pension eligibility requirement to 15 years of contributions (down from 20 years) and introduced stricter withdrawal restrictions for new participants.

Inside This Guide

Vietnam Social Insurance (Bảo hiểm xã hội – BHXH) is a mandatory government-managed insurance system that provides financial protection for workers during illness, maternity, occupational accidents, retirement, and death. Established under the Social Insurance Law 2024 (Law No. 41/2024/QH15, effective July 1, 2025), BHXH operates through contributions from both employers and employees to create a collective fund that replaces or supplements income when workers face life risks.

The system consists of three main insurance types:

Compulsory social insurance (covering retirement, sickness, maternity, occupational accidents, and death)
Health insurance (covering medical treatment costs)
Unemployment insurance (exclusive to Vietnamese nationals).

For foreign teachers and education professionals, social insurance participation became mandatory on December 1, 2018 under Decree 143/2018/ND-CP.

Vietnam Social Security (VSS), a state agency under the Government, administers the entire BHXH system, managing fund collection, benefit distribution, and compliance enforcement across 63 provincial social insurance offices nationwide.

Yes, foreign teachers must participate in compulsory social insurance if they meet two mandatory conditions: (1) employment under an indefinite-term or fixed-term labor contract of 12 months or more with a Vietnamese employer, and (2) possession of a valid work permit, practicing certificate, or practicing license issued by Vietnamese competent authorities. These requirements apply regardless of nationality, teaching subject, or institution type.

The Social Insurance Law 2024 clarifies that contract duration determines participation, not work permit validity. Foreign teachers on contracts shorter than 12 months are exempt, but employers must enroll them immediately once contract duration reaches the one-year threshold.

Three categories of foreign teachers are exempt from compulsory social insurance:

Internal transfers: Teachers transferred from overseas offices of the same organization who worked there for 12+ consecutive months before Vietnam assignment
Retirement-age teachers: Those who have reached retirement age at contract signing (in 2025: men 61 years 3 months or older, women 56 years 8 months or older)
Multiple employers: Teachers with 2+ simultaneous Vietnam employers pay social insurance only through first employment; subsequent employers pay 0.5% occupational accident insurance only

Note on retirement age transitions: Vietnam is gradually increasing retirement age under Labor Code 2019 and Decree 135/2020. The retirement age increases by 3 months annually for men (reaching 62 by 2028) and 4 months annually for women (reaching 60 by 2035). In 2025, retirement ages are 61 years 3 months for men and 56 years 8 months for women.

Foreign teachers contribute 8% of monthly salary to social insurance, while employers contribute 17.5%, creating a total social insurance contribution of 25.5%. Additionally, health insurance requires 1.5% from employees and 3% from employers. The combined mandatory insurance burden (social insurance + health insurance) totals 30% of gross monthly salary.

How Much Do Foreign Teachers Pay for Social Insurance?

These rates apply to salary amounts between the minimum reference level (VND 2.34 million per month) and maximum cap (VND 46.8 million per month – 20 times the reference level), according to Social Insurance Law 2024 and Decree No. 73/2024.

Contribution breakdown:

Insurance Type	Employee Rate	Employer Rate	Total
Social Insurance	8%	17.5%	25.5%
– Retirement & Death Fund	8%	14%	22%
– Sickness & Maternity Fund	0%	3%	3%
– Occupational Accident & Disease	0%	0.5%*	0.5%
Health Insurance	1.5%	3%	4.5%
TOTAL MANDATORY INSURANCE	9.5%	20.5%	30%

*Can be reduced to 0.3% for low-risk industries with Ministry of Labor approval

Important: Foreign teachers do NOT participate in unemployment insurance (Vietnamese nationals only). Vietnamese employees pay an additional 2% total (1% employee + 1% employer) for unemployment insurance, making their total mandatory insurance 32% compared to 30% for foreigners.

Example calculation for foreign teacher earning VND 30 million/month:

Employee deduction: VND 2,850,000 (8% SI + 1.5% HI = 9.5%)
Employer payment: VND 6,150,000 (17.5% SI + 3% HI = 20.5%)
Total contribution: VND 9,000,000 (30%)

Teachers earning above the VND 46.8 million monthly cap contribute based on the capped amount only, not their full salary.

Teachers not receiving salary for 14+ working days in any month are exempt from that month’s contributions, except during maternity leave when contributions continue.

What Benefits Do Foreign Teachers Receive from BHXH?

Foreign teachers participating in compulsory social insurance receive five primary benefit categories, identical to Vietnamese employees: sickness benefits, maternity benefits, occupational accident and disease benefits, retirement pension, and survivorship benefits.

Sickness Benefits

Teachers unable to work due to illness or non-work-related injury receive paid sick leave at 75% of average monthly salary for the illness duration, determined by medical certification. The Social Insurance Law 2024 introduced half-day sick leave allowances (previously only full-day leave qualified).

Benefit eligibility requires minimum 3 months of contributions within the 12 months before illness. Teachers can take sick leave for up to 180 days annually for normal illnesses, with extensions possible for serious conditions requiring long-term treatment.

Maternity Benefits

Female teachers receive 6 months of fully paid maternity leave (100% of average monthly salary), calculated from the 6-month average salary before childbirth. Multiple births extend leave by 1 additional month per child (7 months for twins, 8 months for triplets). The Social Insurance Law 2024 grants maternity benefits to teachers with minimum 6 months of contributions within the 24 months before delivery.

Male teachers receive paternity leave rights under the 2024 law: 5 to 14 days of paid leave within 60 days after spouse’s childbirth, with exact duration depending on birth circumstances.

Female teachers undergoing fertility treatment now qualify for maternity leave if they contributed for 6+ months within 24 months before childbirth. Teachers receive prenatal checkup allowances for up to 2 examination days, regardless of distance from healthcare facilities.

Occupational Accident and Disease Benefits

Teachers injured during work-related activities or developing occupational diseases receive full medical cost coverage plus paid leave at 100% of average monthly salary during recovery period.

Teachers suffering permanent work capacity reduction receive monthly allowances proportional to impairment percentage. In severe cases (81%+ disability), teachers receive both monthly allowances and one-time lump-sum support.

Retirement Pension

Foreign teachers reaching Vietnam’s retirement age and contributing for minimum 15 years (reduced from 20 years effective July 1, 2025) qualify for monthly pension payments.

Current retirement ages (2025):

Men: 61 years 3 months (increasing to 62 by 2028)
Women: 56 years 8 months (increasing to 60 by 2035)

Pension calculation:

For male teachers with 15-19 years of contributions:

Base rate: 40% of average monthly salary for 15 years
Increase: +1% for each additional year beyond 15 years
Maximum: 45% at 20 years

For male teachers with 20+ years of contributions:

Base rate: 45% of average monthly salary for 20 years
Increase: +2% for each additional year beyond 20 years
Maximum: 75% at 35 years

For female teachers with 15+ years of contributions:

Base rate: 45% of average monthly salary for 15 years
Increase: +2% for each additional year beyond 15 years
Maximum: 75% at 30 years

Example pension calculations:

Teacher contributing 15 years, average salary VND 30M:
- Male: 40% × 30M = VND 12M/month
- Female: 45% × 30M = VND 13.5M/month
Teacher contributing 20 years, average salary VND 30M:
- Both: 45% × 30M = VND 13.5M/month
Teacher contributing 25 years, average salary VND 30M:
- Both: 55% × 30M = VND 16.5M/month
Teacher contributing 30+ years, average salary VND 30M:
- Both: 75% × 30M = VND 22.5M/month (maximum)

Survivorship Benefits

When a foreign teacher passes away, their family receives funeral allowance of 10 months’ base salary (VND 23.4 million in 2025) plus death benefits calculated based on contribution history. Monthly survivor pensions continue for dependent family members according to specified percentages.

Employers bear primary responsibility for registering foreign teachers in the social insurance system within 30 days of employment commencement. Registration follows a 4-step process through Vietnam Social Security’s provincial offices or online portal (https://baohiemxahoi.gov.vn).

How Do Foreign Teachers Register for Social Insurance?

Step 1: Prepare Required Documents

Foreign teachers without existing social insurance codes need:

Form TK1-TS (Declaration of Participation and Adjustment of Social Insurance and Health Insurance Information)
Copy of labor contract showing indefinite term or fixed term of 1+ years
Copy of work permit, practicing certificate, or practicing license with 12+ months validity
Copy of passport with personal information page
Passport-sized photos (4 × 6 cm)
Notarized Vietnamese translation of all foreign documents

Critical requirement: All personal information (full name, gender, nationality) must follow international phonetic standards and match passport exactly.

Step 2: Employer Submits Registration

Employers submit documentation to district-level social insurance office where business is registered. Submission options include in-person, online (requires digital signature), or postal submission.

Vietnam Social Security reviews submissions within 3-5 working days (online) or 5-7 working days (in-person/postal). Upon approval, teachers receive a unique 10-digit social insurance code that remains permanent throughout Vietnam employment.

Step 4: Begin Monthly Contributions

Employers deduct 9.5% from teachers’ monthly gross salary (8% SI + 1.5% HI) and remit combined contributions to Vietnam Social Security by the last day of the following month.

Teachers can verify contributions through:

Vietnam Social Security portal: https://baohiemxahoi.gov.vn
VssID mobile application: iOS and Android
Phone inquiry: 1900 9068 (VND 1,000/minute, 24/7)
Zalo official account: Search “Bảo hiểm xã hội + [province]”

Yes, foreign teachers can claim one-time lump-sum withdrawal when permanently leaving Vietnam or meeting specific conditions under the Social Insurance Law 2024. The law restricts lump-sum withdrawals to protect long-term retirement security while maintaining exit options for foreign workers.

Eligibility Conditions for Lump-Sum Withdrawal

Foreign teachers qualify for one-time payment under four specific circumstances:

Reaching retirement age but contributing less than 15 years
Suffering severe disability with 81%+ work capacity loss or particularly severe disability classification
Fulfilling pension conditions (15+ years contributions, retirement age) but no longer residing in Vietnam permanently
Terminal illness diagnosis regulated by Ministry of Health

Important change for new participants: The Social Insurance Law 2024 eliminated the “12 months unemployment + voluntary request” withdrawal option for participants joining after July 1, 2025. Teachers who contributed before July 1, 2025 retain this grandfather clause.

Lump-Sum Payment Calculation

Withdrawal amount equals 100% of total contributions to retirement and survivorship fund (22% of salary base—8% employee + 14% employer portion), excluding sickness, maternity, and occupational accident fund contributions.

Withdrawal Application Process

Teachers apply through 4-step procedure:

Step 1: Prepare documentation

Application form for one-time social insurance payment (Form 20-HSB)
Original passport and copy
Original social insurance card and health insurance card
Labor contract termination certificate or work permit expiration notice
Exit visa or one-way airline ticket as proof of permanent departure

Step 2: Submit to provincial social insurance office Submission via in-person, online portal, or registered mail.

Step 3: Await approval Vietnam Social Security reviews within 10 business days from submission.

Step 4: Receive payment Collection via in-person cash, bank transfer (3-5 business days), or postal money order.

Employers failing to pay social insurance face escalating penalties under Social Insurance Law 2024 and Decree 274/2025/ND-CP (effective November 30, 2025).

What Happens If Employers Don't Pay Social Insurance?

Employer Penalties

Late payment penalties: Employers missing payment deadlines incur 0.03% daily interest on outstanding amounts, calculated from due date until full payment. This equals approximately 10.95% annually.
Administrative fines: Range from VND 500,000 to VND 150 million depending on violation severity and duration.
Criminal prosecution: The Social Insurance Law 2024 introduced criminal liability for severe violations. Employers deliberately evading payments face imprisonment up to 7 years plus compensation of all missing contributions with accumulated interest.

Employee Protection Procedures

Teachers discovering unpaid contributions can verify payment status through Vietnam Social Security portal or VssID application.

Step 1: Internal resolution attempt
Request written explanation from employer with documentation of missing contributions.

Step 2: Complaint to Vietnam Social Security
File official complaint to district-level social insurance office if employer fails to resolve within 30 days.

Step 3: Labor dispute resolution
File labor dispute complaint with district-level Labor Management Boards.

Step 4: Court action
Pursue civil lawsuits for compensation of missing contributions plus damages.

For comprehensive guidance on complementary insurance options, explore our guide on Best International Health Insurance for Foreign Teachers in Vietnam. International health insurance provides additional coverage beyond compulsory social insurance.

Frequently Asked Questions About Vietnam Social Insurance

Can I Contribute If My Contract Is Less Than 1 Year?

No, foreign teachers on contracts shorter than 12 months are exempt from compulsory social insurance under Decree 143/2018/ND-CP. However, voluntary social insurance enrollment is available at 22% of chosen income level (minimum VND 2.34 million monthly), providing retirement and death benefits only.

What Happens to My Contributions If I Change Employers?

Your social insurance code and contribution history transfer automatically to new employers. Vietnam Social Security maintains lifetime records under your unique 10-digit code regardless of employer changes. All contribution years accumulate toward the 15-year minimum for pension eligibility.

Yes, compulsory social insurance participation is mandatory regardless of international insurance coverage. However, international health insurance provides complementary benefits unavailable through Vietnamese social insurance: dental care, medical evacuation, worldwide coverage, and treatment at private international hospitals. For emergency situations, review our guide on Emergency Medical Care: What to Expect in Vietnam.

Can I Receive Unemployment Benefits?

No, unemployment insurance is exclusive to Vietnamese nationals. Foreign workers cannot participate in or receive unemployment benefits under current Vietnamese law.

Social insurance contributions reduce taxable income for personal income tax (PIT) calculations. Foreign teachers deduct 8% social insurance contributions from gross salary before calculating PIT, alongside 1.5% health insurance deductions.

No, Vietnamese social insurance contributions cannot transfer to foreign social security systems. The system operates independently without international portability. Foreign teachers leaving Vietnam permanently should claim lump-sum withdrawal to recover funds.

Vietnamese social insurance covers comprehensive medical services including outpatient consultations, hospitalization, surgery, laboratory tests, diagnostic imaging, prescription medications, and emergency care at contracted hospitals. Coverage ranges from 80% to 100% of treatment costs depending on facility registration level.

How Long Does Claim Processing Take?

Processing times vary by claim type:

Sickness benefits: 5-7 business days
Maternity benefits: 10-15 business days
Lump-sum withdrawals: 10 business days
Retirement pension: 15-20 business days
Death benefits: 15-20 business days

Vietnam’s social insurance system continues evolving with annual policy updates. The Social Insurance Law 2024 represents the most significant reform in a decade, expanding coverage and strengthening enforcement against non-compliant employers.

For comprehensive insights on health and insurance topics relevant to foreign educators in Vietnam, explore more articles in our HEALTH & INSURANCE category.

Rate this post

Vietnam Social Insurance (BHXH) for Foreign Teachers