From December 1, foreign workers in Vietnam will be covered by compulsory social insurance for their sickness, maternity and occupational accidents or diseases.
|A foreigner teaching English at Tran Quoc Toan primary school, Nam Dinh city, Nam Dinh province__Photo: VNA|
Under Government Decree 143 dated October 15, from January 1, 2022, they will be required to participate in retirement and survivorship insurance.
As defined in the new regulation, foreign workers in Vietnam are those who possess work permits, practice certificates or practice licenses granted by Vietnamese authorities, and are working under indefinite-term labor contracts or labor contracts with a term of at least one full year.
Those who are transferred from their parent companies to Vietnam-based subsidiaries and reach the prescribed retirement age are not required to participate in the compulsory social insurance regimes prescribed in this Decree.
Regarding social insurance premium payment, from December 1, foreign employers will have to contribute social insurance premiums equal to 3 percent of their employees’ monthly salary to the sickness and maternity fund, and 0.5 percent to the occupational accident or disease insurance fund. Meanwhile, foreign workers will have to pay 8 percent of their monthly salary to the retirement and survivorship fund from 2022.
Worthy of note, foreign workers may ask for lump-sum social insurance benefits once they reach the retirement age before paying social insurance premiums for full 20 years, satisfy the conditions for pension enjoyment but no longer reside in Vietnam, terminate their labor contracts, or have their work permits, practice certificates or practice licenses expired without extension.
They may also enjoy lump-sum benefits if contracting fatal diseases such as cancer, leprosy, final-stage tuberculosis or other diseases as prescribed by the Ministry of Health.- (VLLF)