What to know about social insurance for foreigners in Vietnam?

The year 2022 will mark many changes in policies about social insurance for foreigners in Vietnam. This change directly affects the interests of employees. So what are the changes that you need to know about?

1. The subjects who must participate in social insurance for foreigners in Vietnam

According to the provisions of Article 2 of Decree 143/2018/ND-CP, employees who are foreign citizens working in Vietnam are eligible to participate in compulsory social insurance for foreigners in Vietnam when:

Having a work permit or a practicing certificate or a practicing license issued by a competent Vietnamese agency and having an indefinite-term labor contract or a definite-term labor contract for a full 01 year or more with an employer in Vietnam.

what-to-know-about-social-insurance-for-foreigners-in-vietnam

Except for the following two cases:

– Foreign workers who move within an enterprise are managers, executives, experts and technical workers of a foreign enterprise that has established a commercial presence in the Vietnamese territory that temporarily transferred within the enterprise to a commercial presence in the Vietnamese territory and has been employed by the foreign enterprise for at least 12 months before.

– Having reached the prescribed retirement age:

The retirement age of employees under normal working conditions is adjusted according to the roadmap until reaching 62 years of age for male employees in 2028 and full 60 years of age for female employees in 2035.

From 2021, the retirement age of employees under normal working conditions is 60 years and 03 months for male employees and 55 years and 04 months for female employees. After that, this number increases every year by 03 months for male employees and 04 months for female employees.

2. The different rates of social insurance for foreigners in Vietnam

According to the provisions of Articles 12 and 13 of Decree 143/2018/ND-CP and Resolution 68/NQ-CP, the social insurance premium payment rate for foreigners is based on the monthly salary on which social insurance premiums are based. which corresponds to the following ratios:

As can be seen, employees and employers will start contributing to retirement and death gratuity from January 1, 2022.

3. Salary as the basis for payment of social insurance for foreigners in Vietnam

salary-as-the-basis-for-payment-of-social-insurance-for-foreigners-in-vietnam

Pursuant to Article 14 of Decree 143/2018/ND-CP, the salary used as the basis for paying social insurance premiums for foreign workers is determined as follows:

* For ordinary foreign workers:

The monthly salary on which social insurance premiums are based includes salary, salary allowances and other additional amounts as prescribed.

* For foreign workers as business managers:

The monthly salary on which social insurance premiums are based is the salary decided by the enterprise he/she manages.

Note: The salary for paying social insurance premiums of foreigners is limited as follows:

– The lowest monthly salary for which compulsory social insurance is paid = Regional minimum salary at the time of payment.

4. Benefits for foreigners when participating in social insurance for foreigners in Vietnam

Clause 1, Article 5 of Decree 143/2018/ND-CP stipulates the regimes of compulsory social insurance applicable to foreign workers as follows:

The employees specified in Clause 1, Article 2 of this Decree shall have the following compulsory social insurance regimes: sickness; maternity; occupational accident and occupational disease insurance; retirement and death gratuity.

Before 2022, foreign workers will only be entitled to sickness benefits; maternity; occupational accident and occupational disease insurance because the enterprise only pays insurance for these 03 funds.

From January 1, 2022, employees and users will start contributing to retirement and death gratuity. Therefore, when meeting the conditions prescribed by law, foreign workers will enjoy full benefits including retirement and death gratuity.

Hopefully with this article about social insurance for foreigners in Vietnam, we could provide some useful and timely information to our teachers that are planning to live in Vietnam or are new to living in Vietnam. You can also check out our article about health insurance in Vietnam here. Have a good read!

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To have good luck is a skill Not knowing how to seize opportunities is also a form of incompetence.

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To have good luck is a skill Not knowing how to seize opportunities is also a form of incompetence.