So, Do foreign workers in Vietnam have to pay social insurance? Let’s join DNP Viet Nam Law Firm to update the conditions, contribution rates, exceptions, and incentives.
1. Legal Regulations on Social Insurance for Foreign Employees in Vietnam
1.1. Conditions for Mandatory Social Insurance Participation
Foreign employees working in Vietnam are subject to compulsory social insurance contributions if they:
- First, possess a work permit or practicing certificate issued by Vietnamese authorities.
- Second, hold a labor contract with a duration of 12 months or more.
- Third, have not reached the statutory retirement age.
- Finally, are not classified as intra-corporate transferees.
Legal basis: Clause 1, Article 2 of Decree No. 143/2018/ND-CP; Article 124 of the Law on Social Insurance 2024.
1.2. Cases Exempt from Social Insurance Contribution
Foreign employees are not required to participate in Vietnam’s compulsory social insurance in the following cases:
- Exempt from work permits under Article 154 of the 2019 Labor Code.
- Working under a labor contract of less than 12 months, as stipulated in Clause 1, Article 2 of Decree No. 143/2018/ND-CP.
- Identified as intra-corporate transferees (Clause 2, Article 2 of Decree No. 143/2018/ND-CP).
- Having reached the statutory retirement age under Article 169 of the 2019 Labor Code.
- Falling under international treaties, such as the Vietnam–Korea Social Insurance Agreement (effective from January 1, 2024).
1.3. Mandatory Social Insurance Payments
Total mandatory payment: 25.5% of monthly salary (employee: 8%; employer: 17.5%).
| Payment item | Employee contribution (%) | Employer contribution (%) |
| Retirement and survivors’ fund | – | 14% |
| Sickness and maternity fund | – | 3% |
| Occupational accident and disease fund | – | 0.5% |
| Total | 8% | 17.5% |
Legal basis: Article 12, Decree No. 143/2018/ND-CP; Clause 2, Article 5, Decree No. 58/2020/ND-CP.
In addition to social insurance, foreign employees participate in health insurance at 4.5% of salary (Article 18, Law on Health Insurance 2008, as amended). They are not subject to voluntary unemployment insurance (Article 43, Law on Employment 2013).
2. Benefits of Participating in Social Insurance
- Sickness allowance: entitlement to benefits during leave caused by illness.
- Maternity benefits: applicable in cases of childbirth, adoption, or for husbands whose wives give birth.
- Occupational accidents and diseases: coverage includes allowances and medical expenses.
- Retirement and survivors’ benefits: monthly pension or survivors’ allowance.
2.1. Lump-Sum Social Insurance upon Returning Home
In particular, foreign employees who terminate their employment and, after 12 consecutive months, no longer participate in Vietnam’s social insurance scheme are therefore entitled to a one-time payment.
2.2. Notes for Employers
- First, correctly identify employees who are required to participate in compulsory social insurance.
- Next, keep up to date on bilateral social insurance agreements.
- Finally, provide clear information to foreign employees on their obligations and entitlements.
Foreign employees working in Vietnam, first of all, must contribute to social insurance if they meet the conditions set out in Vietnam’s law. Moreover, they are entitled to full social insurance benefits and, in addition, may claim a one-time payment upon returning to their home country. However, some cases are exempted from social insurance contributions under domestic law or international treaties.
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