Ho Chi Minh City Social Insurance said that according to the provisions of Clause 2, Article 2 of the Social Insurance Law 2024, foreign workers working in Vietnam are subject to compulsory social insurance when working under a labor contract (LTC) with a term of 12 months or more with an employer in Vietnam, except for the following cases: Moving within the enterprise as prescribed by the law on foreign workers working in Vietnam; At the time of signing the labor contract, they were old enough to retire as prescribed in Clause 2, Article 169 of the Labor Code 2019; The international treaty to which the Socialist Republic of Vietnam is a member has other provisions.
Ho Chi Minh City Social Insurance notes that in case a foreign worker is not working and does not receive salary for 14 working days or more in a month, he/she does not have to pay social insurance for that month. This period is not counted for social insurance benefits, except in cases of maternity leave.
When participating in compulsory social insurance, foreign employees are entitled to the following regimes for Vietnamese employees: Sickness regime; Maternity regime; Occupational accident and disease insurance regime; Retirement and death regime.
Ho Chi Minh City Social Insurance also said that foreign workers working in Vietnam must participate in various types of social insurance with the following contribution levels: 8% of the salary used as the basis for compulsory social insurance contributions to the pension and death fund; 1.5% of the salary used as the basis for compulsory social insurance contributions to the Health Insurance Fund. Foreigners are not eligible for unemployment insurance, so they do not need to pay this amount.
In total, foreign employees subject to compulsory monthly social insurance must pay 9.5% of the salary used as the basis for social insurance, health insurance, occupational accident and disease insurance.
The enterprise is responsible for paying compulsory insurance for foreign employees at the following rates: 17% of the salary used as the basis for social insurance contributions, of which 14% is paid to the Pension and Death Fund, 3% is paid to the sickness and maternity Fund and 3% of the monthly salary is paid to the Health Insurance Fund.
In addition, according to Article 4 of Decree No. 58/2020/ND-CP, enterprises pay occupational accident and disease insurance at a rate of 0.5% or 0.3% depending on each case. If the enterprise operates in a field with a high risk of occupational accidents or diseases, and meets the prescribed conditions, has a written request and is approved by the competent authority, it can be paid at 0.3%.
In total, employers must pay compulsory social insurance for foreign workers, which is 20.5% of the salary for social insurance contributions.
