Do foreign workers working in Vietnam have to pay health insurance?

by BichNgoc

Health insurance for foreign workers is a common issue nowadays; when Vietnamese businesses tend to use foreign workers. Therefore; regarding the issue of Health Insurance for foreign workers working in Vietnam; LSX Lawfirm would like to share with you this issue according to the article: “Do foreign workers working in Vietnam have to pay health insurance?”; as follows:

Law on Health Insurance 2008 was amended and supplemented in 2014

Decision No. 595/QD-BHXH

Subjects of application of health insurance in accordance with provisions

Accordingly; Clause 2; Article 1 and Point a; Clause 1; Article 12 of the Law on Health Insurance 2014 provide:

Firstly

Article 1. Scope of regulation and subjects of application

2. This Law applies to domestic and foreign organizations and individuals in Vietnam related to health insurance.

Secondly

Article 12. Subjects participating in health insurance

1. Groups paid by employees and employers; including:

a) The employee works under an indefinite term labor contract; or a labor contract with a term of 3 months or more; the employee who is the manager of the enterprise receives a salary; cadres; civil servants and public employees (hereinafter referred to as employees).

So

Accordingly; whether a domestic organization; or individual; or a foreign organization or individual in Vietnam can participate in health insurance; the law on health insurance does not discriminate against employees; who are citizens. Vietnamese or foreign citizens; foreign workers are also subject to the current Health Insurance Law; and must participate in health insurance; if they fall under the cases prescribed by law.

Health insurance premiums of foreign workers in Vietnam

Firstly

Clause 1, Article 17 of Decision 595/QD-BHXH clearly states that an employee working under an indefinite term labor contract; not only a labor contract with a term of 3 months or more; but also an enterprise manager; then Management and administration of cooperatives with salary; working in agencies; units; organizations, etc. must participate in health insurance (HI).

In addition, Article 18 of Decision 595/QD-BHXH stipulates the level of health insurance premiums; as follows:

1. Subjects specified at Points 1.1, 1.2, Clause 1; Article 17: the monthly payment is equal to 4.5% of the monthly salary; of which the employer pays 3%; employees pay 1.5%. The monthly salary; on which health insurance premiums ;are based is the monthly salary on which compulsory social insurance premiums; are based specified in Article 6”.

Secondly

The rate of payment of health insurance premiums for employees; who are foreign citizens is 1.5% of the monthly salary; for which compulsory social insurance is paid.

Moreover; the maximum salary to calculate the amount of health insurance premiums specified in Clause 8; Article 1 of the Law on Health Insurance Amended and Supplemented in 2014; is 20 times the base salary.

Thus, for health insurance: if you are a foreign worker working in Vietnam under a labor contract of 3 months or more; you must participate in health insurance. The rate of payment of health insurance premiums for employees; who are foreign citizens is 1.5% of the monthly salary for which compulsory social insurance is paid.

Related questions

In which case foreign workers are not required to participate in social insurance?

Employees who are foreign citizens working in Vietnam are not eligible to participate in compulsory social insurance for foreigners; according to the provisions of this Decree; when falling into one of the following cases:
Firstly; moving within the enterprise according to regulations.
Secondly; the employee has reached the prescribed retirement age.

In case foreign workers participate in compulsory social insurance

According to Decree No. 143/2018/ND-CP of the Government:
Firstly; have a work permit or a practice certificate; or a practicing license issued by a competent Vietnamese agency.
Secondly; have an indefinite term labor contract; or a definite term labor contract from full 1 year; or more with employers in Vietnam.

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