The insurance regime of foreigners when participating in labor in Vietnam is one of the issues that foreign workers working in Viet Nam are concerned about. Understanding that LSX would like to share with customers as follows:
– Labor Code 2019;
– Law on Health Insurance amended and supplemented in 2014;
– Law on Social Insurance 2014;
– Working Law 2013
– Decree 143/2018/ND-CP
– Decision 595/QD-BHXH
Social insurance regime
According to the provisions of Clause 1, Article 2 of Decree 143/2018/ND-CP, foreign workers working in Vietnam must participate in the following insurance regimes: sickness; maternity; occupational accident and occupational disease insurance; retirement and death.
From January 1, 2022, foreign workers will pay 8% of their monthly salary to the retirement and survivorship fund every month, in addition, they do not have to pay other social insurance regimes. In addition, the employer shall make monthly contributions to the employee’s monthly salary on which social insurance premiums are based as follows:
– 3% to the sickness and maternity fund;
– 0.5% to the labor accident and occupational disease insurance fund;
– 14% to the retirement and survivorship fund.
According to the Law on Health Insurance 2014, amended and supplemented, the subjects participating in health insurance are employees working under indefinite-term labor contracts or labor contracts with a term of 3 months or more; employees who are managers of enterprises receive a salary; cadres, civil servants and public employees (hereinafter referred to as employees). Thus, foreign workers working in Vietnam are also eligible to participate in health insurance like Vietnamese workers.
According to Article 18 of Decision 595/QD-BHXH, the health insurance premium rates are as follows:
– Employer: 3% of the monthly salary;
– Employees: 1.5% of the monthly salary.
According to 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.
According to Clause 1, Article 43 of the Employment Law 2013, 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:
– A labor contract or a definite-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 addition, according to Clause 1, Article 3 of the Employment Law 2013, it is explained that “Employees are Vietnamese citizens aged full 15 years or older, have the ability to work and have the need to work.” Therefore, the term “employees” defined in the Employment Law 2013 is understood as Vietnamese citizens 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.
So, an employee who is a foreign citizen working in Vietnam is not eligible to participate in the compulsory social insurance for foreigners in one of the following cases:
– Move within the internal enterprise according to regulations.
– The employee has reached the prescribed retirement age.
So, According to Decree No. 143/2018/ND-CP of the Government, subjects participating in social insurance from December 1, 2018, employees who are foreign citizens working in Vietnam are subject to participation in compulsory social insurance when: Having a work permit or practicing certificate or a practicing license issued by a competent Vietnamese agency and having an indefinite term labor contract or a definite term labor contract from full 01 years or more with employers in Vietnam
Contact LSX Lawfirm
Finally, hope this article is useful for you to answer the question about: “Insurance regime of foreigners when participating in labor in Vietnam”, please contact LSX Law firm: +84846175333 or Email: email@example.com