From 2025, the compulsory social insurance (SI) policy for foreign employees in Vietnam continues to change under the Social Insurance Law 2024 and Decree No. 158/2025/NĐ-CP. This article, prepared by DNP Vietnam Law Firm, explains the latest rules on compulsory SI for foreign workers, especially contribution rates, entitlement schemes, and key compliance notes for 2025.
1. Legal Grounds Applicable to Foreign Employees
– Social Insurance Law 2024.
– Decree No. 158/2025/NĐ-CP, guiding several articles of the Social Insurance Law on compulsory SI.
2. Eligible Foreign Employees and Conditions for Participation
– Foreign employees working in Vietnam under a labor contract with a term of 12 months or longer must participate in compulsory SI.
– A foreign worker may be exempt from SI in Vietnam if they:
– Are sent to Vietnam by an overseas employer and remain on the foreign payroll; or
– Come from a country that has a bilateral SI agreement with Vietnam and already participates in SI abroad.
– Once the labor contract meets the legal conditions, both the employer and the employee must pay compulsory SI contributions.
3. Contribution Rates for Foreign Employees in 2025
3.1 Salary Components Used as the SI Calculation Base
– The SI calculation base includes the basic salary, allowances, and mandatory supplementary payments.
– The base salary does not include bonuses or welfare benefits under the Labor Code.
– SI contributions are calculated on this salary base.
3.2 Compulsory SI Contribution Rates
– Foreign employees contribute 8% of the SI salary base to the retirement and survivorship fund.
– Employers contribute 17% of the SI salary base, including:
– 3% to the sickness and maternity fund;
– 14% to the retirement and survivorship fund.
– Therefore, the total compulsory SI contribution rate is 25% of the salary base each month.
3.3 Important Notes on SI Contributions
– If an employee is suspended from work for 14 working days or more in a month, compulsory SI contributions will be temporarily suspended for that month.
– However, if the employer still pays full salary during the suspension, the employer must make SI contributions for the suspended period.
4. Social Insurance Benefits for Foreign Employees
– Under the Social Insurance Law 2024, SI ensures income replacement or compensation when an employee loses or reduces income due to sickness, maternity, occupational accidents, occupational diseases, retirement, or death.
– Through compulsory contributions, foreign workers are entitled to the following benefits:
– Sickness and maternity benefits;
– Occupational accident and occupational disease benefits;
– Retirement pension, if meeting age and contribution requirements;
– Survivorship benefits, if the employee dies.
– Thus, compulsory SI helps foreign workers enjoy similar social protection as Vietnamese employees.
5. Recommendations for Enterprises and Foreign Employees
– Employers should review foreign employees’ contracts and ensure the term is at least 12 months when compulsory SI participation is required.
– Payroll used as the SI calculation base must include salary, allowances, and mandatory supplements; bonuses and welfare payments must be excluded.
– If a worker is suspended for 14 days or more, the employer must determine whether SI contributions are suspended or must be paid in full.
– Employees should keep salary and SI contribution records for future claims on retirement, sickness, maternity, or survivorship benefits.
Compulsory SI for foreign workers in 2025 applies a total contribution rate of 25% and ensures full benefits under the Social Insurance Law 2024. Both employers and foreign employees must comply to avoid legal risks. DNP Vietnam Law Firm is ready to provide full support and guidance where needed.
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