Foreign workers entitled to compulsory social insurance
The Vietnam Social Security has directed its branches in cities and provinces nationwide to collect compulsory social insurance premiums of foreign employees in the country.
Foreign workers entitled to compulsory social insurance (Photo: nld.com.vn)
Hanoi (VNA) – The Vietnam Social Security has directed its branchesin cities and provinces nationwide to collect compulsory social insurancepremiums of foreign employees in the country.
Under the Government’s Decree No.143/2018/ND-CP, which took effect fromDecember 1, 2018, employees who are foreign citizens working in Vietnam with eithera work permit, practice certificate, or practice licence granted by Vietnameseauthorities and under unfixed-term labour contracts or contracts with a term offull one year and above will be covered by compulsory social insurance.
Similarto Vietnamese employees, the social insurance scheme for foreigners will coversickness, maternity, occupational diseases and accidents, retirement, andsurvivor benefits.
From January 1, 2022, foreign labourers who are subject to the compulsoryinsurance scheme must contribute 8 percent of their monthly salary to theretirement and survivor benefit fund, equivalent to the amount their Vietnamesepeers do.
Meanwhile, it is compulsory for employers to contribute amounts equal to 3percent of the employees’ monthly salary to the sickness and maternity funds,and 0.5 percent to the funds for occupational accidents and hazards. They alsohave to contribute 14 percent of the employees’ monthly salary to the retirementand survivor benefit funds.
According to statistics by the Ministry ofLabour, Invalids, and Social Affairs, the number of foreign employees in thecountry increased from 63,557 in 2011 to 83,046 in 2016. They mostly came fromAsian countries like China, the Republic of Korea, and Japan, accounting for 73percent of the total; followed by European nations (21.6 percent) and NorthAmerica (2.4 percent). –VNA
The Government has officially issued a decree stipulating in details and guiding the enforcement of the Law on Social Insurance on compulsory social insurance for foreign employees in Vietnam.
As many as 815 enterprises in the southern largest economic hub of Ho Chi Minh City owe more than six months of social insurance payments, while thousands of enterprises owe two months.
Bilateral agreements for a new generation of social insurance policy have been negotiated to support foreign workers engaging in Vietnam’s social insurance scheme, said Deputy General Director of the Vietnam Social Security (VSS) Dao Viet Anh.
The Vietnam Social Security’s chapter in Ho Chi Minh City aims to increase social insurance coverage to 54 percent of the local workforce, equivalent to more than 2.5 million people in 2019.
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Foreign workers entitled to compulsory social insurance (Photo: nld.com.vn) 
