Do foreign workers have to participate in unemployment insurance when working in Vietnam? Types of insurance that foreign workers must participate in today. Let’s find out this issue with LSX Lawfirm.
Legal grounds
Labour Law 2019
Employment Law 2013
Law on Health Insurance 2008, amended and supplemented in 2014
Foreign worker do not need to pay unemployment insurance
Accordingly Clause 1, Article 43 of the 2013 Employment Law, the subjects participating in unemployment insurance include employees who must participate in unemployment insurance when working under a labor contract or a working contract as follows:
– An employment contract or an indefinite term employment contract;
– A labor contract or a fixed-term work contract;
– Seasonal labor contracts or for a certain job with a term of from full 3 months to less than 12 months.
In case the employee enters into and is performing many labor contracts specified in this Clause, the employee and the employer of the first signed labor contract are responsible for participating in unemployment insurance.
In addition, according to Clause 1, Article 3 of the Employment Law 2013; the term “Employee” is used in the Employment Law 2013; as a Vietnamese citizen aged 15 years or older, have the ability to work and have the need to work. Therefore, the term “employee” defined in the Employment Law 2013 is understood as a Vietnamese citizen aged full 15 years or older, capable of working and wishing to work.
Thus, foreigners working in Vietnam are not subject to compulsory participation in unemployment insurance.
Foreign workers must participate in social insurance and health insurance
Accordingly the current law, foreign workers working in Vietnam will be able to participate in social insurance and health insurance. Specifically:
Social insurance
Accordingly Clause 1, Article 2 of Decree 143/2018/ND-CP , Employees who are foreign citizens working in Vietnam are eligible to participate in compulsory social insurance when fully meeting the following conditions:
+ Having a work permit or practicing certificate or a practicing license issued by a competent Vietnamese agency;
+ Having an indefinite-term labor contract or a definite-term labor contract of full 01 year or more with an employer in Vietnam.
Except for 2 cases that do not need to participate in compulsory social insurance :
+ 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 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.
+ The employee has reached the retirement age; Foreign workers shall have the following compulsory social insurance regimes: sickness; maternity; occupational accident and occupational disease insurance; retirement and death.
Join health insurance
Accordingly Clause 2, Article 1 of the Law on Health Insurance 2008, amended and supplemented in 2014 : “This Law applies to domestic organizations and individuals and foreign organizations and individuals in Vietnam related to health insurance.” Therefore, participation in health insurance applies to all subjects living and working in Vietnam, regardless of Vietnamese or foreigners.
Thus, the foreign worker working under an indefinite term labor contract, a labor contract with a term of 3 months or more, the employee is the manager of the enterprise, the executive manager of the contract. wage-earning cooperatives, working at agencies, units and organizations must participate in health insurance.
The rate of social insurance premium payment is specified in Clause 1, Article 18 of Decision 595/QD-BHXH, the employee will pay 1.5%, the employer will pay 3%, the monthly contribution rate will be 4.5% of the rate. monthly wage.
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Related questions
Accordingly Clause 4, Article 3 of the 2013 Employment Law , Unemployment insurance is a regime aimed at compensating a part of an employee’s income when he or she loses a job, supporting workers in vocational training, job maintenance, and job search. on the basis of contributions to the Unemployment Insurance Fund
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