Social security is the responsibility of every enterprise using labor in Vietnam. However, not all employers are aware of the regulations related to social security. BW\u2019s legal consulting experts can provide crucial information regarding insurance in Vietnam.<\/p>\n
There are three types of social security schemes that are required for all employees in Vietnam:<\/p>\n
\u2013 Social insurance: This type of insurance covers employees\u2019 benefits such as sick leave, maternity leave, benefits for work-related accidents and occupational diseases, pension allowance, and mortality allowance.<\/p>\n
\u2013 Health insurance: This allows employees to undergo medical examinations and inpatient and outpatient treatments at authorized medical facilities.<\/p>\n
\u2013 Unemployment insurance (which replaces severance pay): This wis paid to workers at an amount that depends on the amount of time they and their previous employers contribute. The monthly unemployment allowance is 60% of the average salary in the last six months of work.<\/p>\n
What is an enterprise\u2019s responsibility regarding social insurance for recruiting local and foreign labor in Vietnam?<\/p>\n
Businesses should pay attention to the following notes:<\/p>\n
\u2013 Social insurance and health insurance apply to both Vietnamese staff and foreign employees holding a work permit and employed under labor contracts with indefinite term or definite term of at least 1 year.<\/p>\n
\u2013 Unemployment insurance is only required for Vietnamese employees.<\/p>\n
\u2013 For those whose contract is valid for more than three months or for an indefinite period of time, the employer will cover insurance costs \u2014 meaning that enterprises must register and pay for their employees\u2019 insurance at the Department of Labor, Invalids and Social Affairs.<\/p>\n
SOCIAL INSURANCE CALCULATION<\/strong><\/p>\n As of January 1, 2018, the monthly salary as the basis for social insurance payment will be the salary plus salary-based benefits mentioned in the labor contract, however this is capped at 20 times the minimum salary for social insurance contributions set by the government.<\/p>\n For local workers this can be calculated as below:<\/p>\n For foreign workers:<\/p>\n\n\n
\n <\/td>\n Social Insurance<\/span><\/strong><\/td>\n Health Insurance<\/span><\/strong><\/td>\n Unemployment Insurance<\/span><\/strong><\/td>\n Trade Union fee<\/span><\/strong><\/td>\n<\/tr>\n \n Employee<\/strong><\/span><\/td>\n 8%<\/td>\n 1.5%<\/td>\n 1%<\/td>\n 1%<\/td>\n<\/tr>\n \n Employer<\/strong><\/span><\/td>\n 17.5%<\/td>\n 3%<\/td>\n 1%<\/td>\n 2%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n\n
\n <\/td>\n Social Insurance<\/strong><\/span><\/td>\n Health Insurance<\/strong><\/span><\/td>\n Trade Union fee<\/strong><\/span><\/td>\n<\/tr>\n \n <\/td>\n From 01\/12\/2018<\/td>\n From 01\/01\/2022<\/td>\n From01\/01\/2015<\/span><\/td>\n From 01\/12\/2018<\/td>\n<\/tr>\n \n Employee<\/strong><\/td>\n 0%<\/td>\n 8%<\/td>\n 1.5%<\/td>\n 0%<\/td>\n<\/tr>\n \n Employer<\/strong><\/td>\n 3.5%<\/td>\n 17.5%<\/td>\n 3%<\/td>\n 2%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n