Participation in social insurance is a mandatory condition when employing foreign workers to work in Vietnam. So what types of foreigners are eligible, what are the payment rates and procedures for the participation in social insurance of foreign citizens?
1.It’s compulsory for foreigners to pay social insurance
The latest social insurance regime for foreigners working in Vietnam is specified in Decree 143/2018 / ND-CP by the Government, issued on October 15, 2018 and the Law on Occupational Safety and Health on compulsory social insurance for foreign workers.
In which, content about subjects participating in social insurance is specified in Article 2 of the Decree. Accordingly, foreigners are working in Vietnam must pay compulsory social insurance when they meet all 3 following conditions:
+ Have a work permit, practice certificate or practice permit issued by the competent authorities in Vietnam.
+ Having signed a labor contract with a minimum term of 1 year or an indefinite term contract with the employer in Vietnam.
+ Still at a working age, not yet at retirement age (60 years old for men, 55 years old for women).
+ Reaching the retirement age according to the regulations on the retirement regime.
+ Participating in signing and negotiating many labor contracts with many organizations, – then you only need to pay for social insurance in the contract with the first organization/ company.
2.The rate of social insurance payment for the foreign worker
+ From December the 1st, 2018, the rate of social insurance payment is based on the employee’s salary for participation in social insurance:
Employers contribute 3% to the sickness and maternity fund and 0.5% to the labor accident and occupational disease insurance fund.
(the retirement and death fund are not required). The total amount is 3.5%. Foreign workers are not required to contribute to the above funds.
+ From 1/1/2022, the rate of social insurance payment based on the salary fund participating in social insurance is as follows:
Employers contribute 3% to the sickness and maternity fund, pay 0.5% to the labor accident and occupational disease fund and 14%
to the retirement and death fund. The total amount is 17.5%
+ Foreign workers contribute 8% to the retirement and death fund. The total percentage of employees’ compulsory payment is 8% for this period.
Note:
+ The regulated salary for paying social insurance for foreigners includes salary, allowances and the additional amounts. The maximum insurance premium salary is equal to 20 times of base salary.
+ Insurance premium salary does not include benefits and bonuses under the Labor Law.
3.Procedures
Basically, the procedure for paying social insurance premiums for foreign citizens working in Vietnam consists of a number of forms similar to those used for domestic workers. However, if you are a foreigner working in Vietnam, you need to note some regulations.
For foreign workers:
+ Declaration of participation, information of social insurance and health insurance adjusted in accordance with the form TK1-TS and only use this form for participants who have not been issued with a social insurance number or when there is any change of information.
+ When filling in information, the data such as full name, country and gender must be written according to the international phonetic sound.
+ Attached personal documents issued by a state agency must be translated into Vietnamese and have valid certification as prescribed by Vietnam’s law.
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