I am a foreigner working in Vietnam. To my knowledge, the new Law on Social Insurance came into force on January 1, 2016. As per the law, am I obliged to participate in compulsory social insurance? If I am, what is the insurance premium and how can I manage the payment of social insurance premium and enjoyment of insurance sum?
According to the 2014 Law on Social Insurance, employees who are foreign citizens working in Vietnam with work permits or practice certificates or practice licenses granted by competent Vietnamese agencies will be covered by compulsory social insurance.
|From January 1, 2018, foreigners working in Vietnam will be covered by compulsory social insurance__Photo: Internet|
However, this new regulation will become effective on January 1, 2018.
From that date, you are required to participate in compulsory social insurance, and pay insurance premiums based on your wage, allowances and other additional amounts stated in your labor contract.
Specifically, you will have to pay eight percent of your monthly wage while your employer will have to pay 18 percent of your full pensionable wage, making a total of 26 percent to the social insurance fund.
Under the Vietnamese law, you are allowed to manage your social insurance book during the period of social insurance premium payment in order to monitor the payment of social insurance premiums and enjoyment of social insurance sums. Additionally, you will also be provided by your employer with information on the annual payment of social insurance premiums once every six months, and have your annual social insurance premium payment certified by the social insurance agency annually.
This will provide an important ground for you to compare and supervise the responsibility of your employer to pay social insurance premiums.
As per the social insurance law, employees and employers that shirk or delay the payment of, or appropriate, social insurance or unemployment insurance premiums for more than 30 days will be sanctioned.
From 2020, social insurance books will be replaced with social insurance cards.- (VLLF)