1. Covered subjects:

From December 1, 2018, all employees who are foreign citizens working in Vietnam will be required to participate in State mandatory social insurance when they have obtained a work permit, practice certificate, or practice licence granted by relevant authorities in Vietnam and under non-fixed-term employment contracts or employment contracts which are valid for one year of longer.

2. Subjects not applicable to social security participation:

- Foreign employees moving within a business who are managers, managing directors, experts, or technical workers who temporarily move to their foreign business’s established commercial representative body in Vietnam’s territory and have been employed by that foreign business for at least 12 months.

- Workers who have reached retirement age (60 for males and 55 for females).

3. Premium rate, based on foreign workers’ salary:

The monthly salary used to calculate social insurance premiums is the salary and other benefits based on labour regulations that the foreign employee receives on a monthly basis. In case the monthly salary is 20 times higher than the minimum monthly salary, the monthly base salary for social insurance contribution is capped at 20 times of minimum common salary.

4. For foreign workers who have employment contracts with multiple employers:

Foreign workers who are subject to State social insurance and have entered into employment contracts with multiple employers will, together with their employers, only pay social security premiums for the first employment contract.

However, employers are required to pay premiums into the labour accidents and occupational diseases fund for each employment contract.

5. All social insurance regimes:

Foreign workers eligible for State social insurance must participate in all compulsory insurance regimes:

+ Sickness

+ Maternity

+ Labor accidents and occupational diseases

+ Pension and survivors’ benefits.

6. Lump-sum payout:

Foreign workers can receive a lump sum repayment after their last payment made to the social insurance fund, starting from the day the employment contract is terminated, without having to wait one year. (This is meant to allow foreign workers to immediately return to their home country after the contract is over).

7. Foreign workers receiving benefits outside of Vietnam:

Foreign workers who are receiving monthly pension and social insurance subsidies but no longer residing in Vietnam can authorise another person to receive the payouts on their behalf. They could also receive a lump-sum payout if they wish.

Efforts have been made to ensure fairness between the benefits for foreign workers in Vietnam and Vietnamese workers. In addition, the development of social insurance regimes and benefits have taken into account the particular characteristics of this workforce group to create the best conditions for expat workers during their work in Vietnam./.