Foreigners who enter into labor contracts with a term of at least full one month with Vietnam-based employers would have to participate in compulsory social insurance if they possess work permits, practice certificates or practice licenses granted by Vietnamese competent authorities.
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| From 2018, foreign workers might have to pay compulsory social insurance premiums__Photo: Internet |
Such provision would be applied from the beginning of 2018 if a draft decree prepared by the Ministry of Labor, War Invalids and Social Affairs to detail the 2014 Law on Social Insurance regarding compulsory social insurance for foreign workers in Vietnam is approved.
As per the draft, the compulsory social insurance package to be applied for foreign workers would be the same as that for Vietnamese laborers, which covers sickness, maternity, labor accident and occupational disease, retirement, and survivorship allowance regimes.
The draft states that foreign employees would have to pay insurance premiums on the basis of their wages, wage-based allowances and other amounts as prescribed. Specifically, they would pay 8 percent of their monthly salary to the retirement and survivorship allowance fund. Meanwhile, employers would contribute 18 percent of an employee’s monthly salary, including 14 percent to the retirement and survivorship allowance fund, 3 percent to the sickness and maternity fund, and 1 percent to the labor accident and occupational disease fund.
When their labor contracts or work permits expire, if foreign workers cease working under such contracts or do not carry out procedures for extension of such permits, they may ask for lump-sum social insurance allowance.
Lump-sum allowance would also be provided for foreigners on pension or monthly social insurance allowance who no longer reside in Vietnam if they so wish.- (VLLF)
