Social Insurance For Foreign Expats Working In Vietnam From 2022
According to current regulations, enterprises which have expat employees must contribute a total rate of 6.5% on the salary to pay insurance for foreigners, specifically: 3% for the sickness and maternity fund; 0.5% for the labor accident and occupational disease fund and 3% for the health insurance fund. (Pursuant to Decree No.143/2018/ND-CP, Decision No.595/QD-BHXH 2017, Decree No.58/2020/ND-CP).
In case enterprises are eligible to contribute labor accident and occupational disease insurance at the rate of 0.3% according to the provisions of Decree 58/2020/ND-CP, the total contribution rate for foreign employees is at 6.3%.
However, according to the provisions of Clause 1, Article 12 and Point c and Clause 1, Article 13 of Decree 143/2018/ND-CP, the contribution rate of both employees and employers will be changes from January 1st, 2022, specifically:
- Expat employees contribute 8% of their monthly salary to the pension and death allowance every month.
- Employers contribute 14% of the monthly salary to the pension and death allowance every month.
Thus, in combination with the above provisions, from January 1st, 2022, the insurance contribution rate of employers and expat employees corresponding to each specific cases are as follows:
- If the employers send a written request to contribute to the labor accident and occupational disease fund at lower rate and they are approved by the Ministry of Labors, Invalids and Social Affairs, the contribution will be as the table below:
Contribution responsibility |
Contribution rate of insurances from 2022 |
||||
Social insurance |
Health Insurance
|
Total |
|||
Pension and Death Allowance |
Sickness and Maternity |
Labor accident and Occupational disease |
|||
Employer |
14% |
3% |
0.3% |
3%
|
20.3% |
Expat employee |
8% |
- |
- |
1.5%
|
9.5% |
Total |
29.8 % |
||||
Social insurance contribution = Monthly salary for insurance contribution x Contribution rate |
- If the employers have not submitted written request or has expired at time limit for lower contribution rate of labor accident and occupational disease insurance, the contribution will be as the table below:
Contribution responsibility |
Contribution rate of insurances from 2022 |
||||
Social insurance |
Health Insurance
|
Total |
|||
Pension and Death Allowance |
Sickness and Maternity |
Labor accident and Occupational disease |
|||
Employer |
14% |
3% |
0.5% |
3% |
20.5% |
Expat employee |
8% |
- |
- |
1.5%
|
9.5% |
Total |
30% |
||||
Social insurance contribution = Monthly salary for insurance contribution x Contribution rate |
Source: Thu Vien Phap Luat
- Report on Foreign Direct Investment (FDI) in Vietnam first 8 months 2021 (16/09/2021)
- Ho Chi Minh City select 3 Districts to reopen after Covid lockdown (15/09/2021)
- (10/09/2021)
- Meal support of 1 million Dongs per employee in three-on-spot workplace (06/09/2021)
- Social insurance and other insurance rates update in Vietnam from July 2021 (04/09/2021)
- Many support policies to help enterprises overcome pandemic in Vietnam (30/08/2021)
- Where to rent small good factory in Ho Chi Minh for manufacturing (28/08/2021)
- How enterprises in Ho Chi Minh are maintaining production and preventing Covid (24/08/2021)
- Where to rent small factory in Cu Chi Ho Chi Minh for packaging industry (19/08/2021)
- Top reputable industrial parks developers Vietnam first quarter 2021 (13/08/2021)
- Supporting foreigners in Vietnam in the context of Covid (24/07/2021)
- Tay Ninh temporarily suspends enterprises not satisfying ati-pandemic conditions (24/07/2021)
- Model for both production and anti-epidemic purposes (24/07/2021)
- What we should notice to rent factory for mechanical production (20/07/2021)
- Where to rent small factory for mechanical production in Ho Chi Minh (19/07/2021)
- How to rent small warehouse in Ho Chi Minh City for your business (16/07/2021)
- Warehouse for rent goes along with development of Logistics industry (14/07/2021)
- EVFTA widens horizon for warehousing and logistics expansion (14/07/2021)
- Renting factory in Cu Chi near Binh Duong attracts investors (06/07/2021)
- Demand for renting small factory in Ho Chi Minh Vietnam (02/07/2021)