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
- (02/06/2021)
- (29/05/2021)
- Industrial parks in Tay Ninh province with 3 projects connecting the SouthEast region (29/05/2021)
- (28/05/2021)
- (24/04/2021)
- Large industrial parks near Ho Chi Minh City, Vietnam | In Tay Ninh province (24/04/2021)
- (02/04/2021)
- Tay Ninh Industrial Zones benefit from the development of transport infrastructure (27/03/2021)
- Development plan of Industrial Parks in Tay Ninh Vietnam (2021) (27/03/2021)
- Vietnam manufacturing with opportunities from RCEP (24/03/2021)
- 370 billion Dongs for a road preject connecting Tay Ninh and Binh Duong (22/02/2021)
- Vietnam Manufacturing Industry Overview (03/02/2021)
- Ho Chi Minh City prioritize capital to complete connection of Ring Road No.3 (28/01/2021)
- Demand for warehouse rental in Vietnam 2020 - Strong growth in Covid-19 pandemic (07/01/2021)
- The Ho Chi Minh City - Moc Bai Expressway will be put into operation in 2025 (28/12/2020)
- Industrial real estate Vietnam: A bright spot in the market (23/12/2020)
- Trends of sustainable warehouse development (14/12/2020)
- DEMAND OF WAREHOUSE AND LOGISTICS SPACE | P1. MARKET EVALUATION (08/12/2020)
- Popular industries of manufacturing in Vietnam (02/12/2020)
- Trends driving the Asia-Pacific industrial and logistics market (01/12/2020)