Social insurance payment rates of foreign workers

Article overview

Social insurance for foreign workers in Vietnam is specifically regulated in Decree 143/2018/ND-CP. This regulation applies to foreign workers with a work permit or practice certificate and a labor contract of 1 year or more. The payment levels, participation procedures and social insurance benefits of this group of people are different from those of domestic workers. This article will analyze the relevant regulations in detail.

Social insurance for foreign workers
Social insurance for foreign workers

Are foreign workers required to participate in social insurance?

According to Article 2 of Decree 143/2018/ND-CP, foreign workers working in Vietnam must participate in compulsory social insurance when meeting the following conditions:

  • Have a work permit, practice certificate or practice license issued by a competent Vietnamese agency.
  • Have an indefinite-term labor contract or a definite-term labor contract of 1 year or more with an employer in Vietnam.

Foreign workers who are subject to compulsory social insurance will enjoy insurance benefits such as retirement, death, maternity, sickness and labor accidents – occupational diseases. However, there are some exceptions that do not require compulsory social insurance:

  • Employees moving within the enterprise according to the provisions of Clause 1, Article 3 of Decree 11/2016/ND-CP.
  • The employee has reached retirement age as prescribed in Clause 1, Article 187 of the Labor Code 2019.

This regulation aims to ensure the rights of foreign workers working in Vietnam, while creating fairness between domestic and foreign workers.

Current social insurance payment rates for foreign workers

Social insurance payment rate of employees

According to Clause 1, Article 12, Decree 143/2018/ND-CP, from January 1, 2022, foreign workers who are required to participate in social insurance must pay 8% of their monthly salary into the pension fund. and death.

Employees who do not work and do not receive a salary for 14 working days or more in a month do not pay social insurance that month. This time is not counted for social insurance benefits, except in the case of maternity leave.

Social insurance payment rate of employees
Social insurance payment rate of employees

Social insurance payment rates of businesses employing employees

Pursuant to Article 13, Decree 143/2018/ND-CP, enterprises employing foreign workers must pay the following amounts:

  • 14% to the retirement and death fund from January 1, 2022.
  • 3% goes to the sickness and maternity fund

However, it should be noted that businesses only pay in cases where they participate in mandatory social insurance

Procedures for participating in social insurance for foreign workers

Procedures for participating in social insurance for foreign workers are specifically prescribed in Clause 1, Article 15 of Decree 143/2018/ND-CP. This process includes two main steps:

Step 1: Submit application

Within 30 days from the date of signing the labor contract, employment or recruitment contract, the employer must submit an application to register to participate in social insurance for foreign workers. Documents to be submitted include:

  • Declaration of participation in social insurance by the employer, accompanied by a list of employees participating in social insurance.
  • Declaration of participation in social insurance of foreign workers.

Step 2: Processing documents

After receiving all valid documents, the social insurance agency is responsible for processing and issuing social insurance cards to foreign workers within 20 days. In case the card is not issued, the social insurance agency must respond in writing and clearly state the reason.

The social insurance card is an important document for foreign workers to exercise their insurance benefits, such as medical examination and treatment, maternity benefits, or other benefits according to Vietnamese law.

Social Insurance Card
Social Insurance Card

Consulting and support services for social insurance issues of foreign workers at Long Phan

Long Phan provides professional consulting services on social insurance for foreign workers. Our team of experts has a deep understanding of social insurance law and related regulations. We support businesses and foreign workers in registering, paying social insurance and resolving arising problems.

Long Phan provides the following services:

  • Consulting on social insurance regulations for foreign workers.
  • Support in preparing and submitting social insurance registration documents.
  • Calculate the payment rate and advise on the correct social insurance payment method.
  • Answer questions about social insurance benefits.
  • Support in resolving disputes related to social insurance.

With extensive experience, we are committed to providing optimal solutions, helping businesses and foreign workers comply with legal regulations on social insurance, while protecting the rights of related parties.

Regulations on social insurance for foreign workers in Vietnam are quite complex and change frequently. To ensure legal compliance and protect your rights, customers need professional support. Long Phan is ready to provide comprehensive consulting services on this issue. Please contact us immediately via hotline 0906735386 for timely and effective support.