Details of social insurance premiums for foreigners

by DungTran

Details of social insurance premiums for foreigners. Which foreigner must participate in social insurance? Social insurance premiums for foreign workers in Vietnam. Let us learn about this topic with LSX law firm as follow:

Which foreigner must participate in social insurance?

Pursuant to Article 2 of Decree 143/2018/ND-CP, employees who are foreign citizens working in Vietnam are required to participate in social insurance if they fully meet the following conditions:

  • Firstly, have a work permit/practice certificate/practice license issued by a competent authority of Vietnam.
  • Secondly, having an indefinite labor contract with a term of full 1 year or more with an employer in Vietnam.

Notably, the following people, although meeting the above conditions, are not eligible to participate in compulsory social insurance, which are:

  • Firstly, foreign workers move within the enterprise.
  • Secondly, foreign workers who have reached the retirement age as prescribed:
  1. Male: From full 60 years old 03 months if retiring in 2021.
  2. Female: From full 55 years old 04 months if retiring in 2021.

Social insurance premiums for foreigners

The provisions in Articles, 12 and 13 of Decree 143/2018/ND-CP and Resolution 68/NQ-CP in 2021;

Accordingly, the social insurance premium payment rate for foreigners is based on the monthly salary; on which social insurance premiums based.

The association of that person corresponds to the following proportions:

Insurance
payment time
Employers Employers Employers Workers
Fund for sickness and maternityOccupational accident and disease fundPension and death fundPension and death fund
Firstly, from December 1, 2018 to June 30, 20213%0,5% or 0,3%0%0%
Secondly, from July 1, 2021 to December 31, 20213%0% (*)0%0%
Thirdly, from January 1, 2022 to June 30, 20223%0% (*)14%8%
Finally, from 1/7/20223% 0,5% or 0,3% 14%8%

Inside:

  • Specifically, to pay only 0.3% to the occupational accident fund; occupational diseases; enterprises operating in fields with high risk of occupational accidents and diseases must request to contribute to the occupational accident fund; occupational diseases with lower levels and approved by the Ministry of Labor, War Invalids and Social Affair (according to Decree 58/2020/ND-CP).

(*) Enterprises are entitled to apply 0% contribution to the labor accident and occupational disease fund from July 1, 2021 to June 30, 2022.

Salary as the basis for payment of social insurance

Pursuant to Article 14 of Decree 143/2018/ND-CP, the salary used as the basis for paying social insurance premiums for foreign workers is determined as follows:

  • Firstly, for ordinary foreign workers: The monthly salary on which social insurance premiums are based includes salary, salary allowances and other additional amounts as prescribed.
  • Secondly, for foreign workers as business managers:

The monthly salary on which social insurance premiums are based is the salary decided by the enterprise he/she manages.

Note: The salary for paying social insurance premiums of foreigners is as follows:

  • Firstly, the lowest monthly salary for which compulsory social insurance paid = Regional minimum salary at the time of payment.
  • Secondly, maximum salary for social insurance payment = 20 x Base salary = 29.8 million dong

(Currently, the base salary applied in 2021 is 1.49 million VND/month)

Benefits for foreigners when participating in social insurance

Clause 1, Article 5 of Decree 143/2018/ND-CP stipulates the regimes of compulsory social insurance applicable to foreign workers as follows:

The employees specified in Clause 1, Article 2 of this Decree shall have the following compulsory social insurance regimes: sickness; maternity; occupational accident and occupational disease insurance; retirement and death.

Thus, foreign workers are also fully regulated with social insurance regimes like Vietnamese workers.

However, in 2021, foreign workers are only entitled to sickness benefits; maternity; occupational accident and occupational disease insurance because the enterprise only pays insurance for these 03 funds. The retirement and survivorship regime will be applied from 2022.

When meeting the prescribed conditions, foreign workers will be paid the corresponding regime by the social insurance fund.

Contact us

Finally, hope this article about Details of social insurance premiums for foreigners is helpful for you!

In case you have any questions, don’t hesitate to get in touch with Lawyer X for quick and best legal services: +84846175333 or email: hoangson@lsx.vn.

Rights and responsibilities of trade unions

Representing and protecting the lawful and legitimate rights and interests of employees.
Firstly, participate in state management, socio-economic management.
Secondly, submit law projects and ordinances and make recommendations on policy and law development.
Thirdly, attend sessions, meetings, sessions, and conferences.
Fourthly, participate in inspection, examination, and supervision of activities of agencies, organizations, and enterprises.
Moreover, propaganda, advocacy, and education of employees.
In addition, develop union members and grassroots unions.
Furthermore, the rights and responsibilities of the immediate superior trade union at the grassroots level for the employees in agencies, organizations, and enterprises that have not yet established a grassroots trade union.

How is the company not paying insurance for employees?

If only one or some employees are not allowed to pay the enterprise; will be fined 12-15% total amount to be paid. Besides, If all employees are not paid; the enterprise will have to pay a fine of 18 – 20% of the total amount. But the maximum is not more than 75 million for both cases.

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