After long time waiting, on 15 October 2018, the Government has promulgated Decree No. 143/2018/ND-CP regulating compulsory social insurance. Under this Draft, a foreign employee shall be subject to compulsory social insurance if meeting the following 3 conditions:

- Having work permit or professional practice certificate or professional practice permit which is granted by a Vietnamese competent agency;

- Having indefinite-term labor contract or labor contract with term of 1 year or more with the employer in Vietnam;

- Not being intra-corporate transferee or reaching the retirement age.

The following regimes of compulsory social insurance the foreign employees have to participate in include: sickness; maternity; labor accidents and occupational diseases; retirement and survivorship allowance.

The payment levels as below: An employee pays 8% of monthly salary into the fund for retirement and survivorship allowance. An employer pays 17.5% of monthly salary, in which: 3% into the fund for sickness and maternity; 0.5% into the fund for labor accident and occupational disease; 14% into the fund for retirement and survivorship allowance. Note that, payments into fund for sickness and maternity and fund for labor accident and occupational disease shall start from 01 December 2018 but payments into fund for retirement and survivorship allowance only start from 01 January 2022.

In case an employee do not work and do not receive salary in 14 working days or more in a month, the employee and the employer shall not pay social insurance premiums for such month. This duration shall not be calculated to enjoy social insurance, except case of maternity leave.

Within 10 days counted to the time of termination of labor contract or time of expiration of work permit, professional practice certificate or professional practice permit and the employee  do not work continuously under the labor contract or the permits are not permitted to be extended and he/she request for enjoy lump-sum social insurance.

Le Thang