The document noted that the MoLISA recently received requests from several localities, enterprises, and business associations asking for clarification on which persons are subject to compulsory social insurance under the Government’s Decree No.143/2018/ND-CP, dated October 15, 2018, which specified the Law on Social Insurance and the Law on Occupational Safety and Health’s regulations on compulsory social insurance for employees who are foreigners in Vietnam. The MoLISA answered as follows:

According to Clause 1, Article 2 of Decree No.143/2018/ND-CP, “Employees who are foreign citizens working in Vietnam are subject to compulsory social insurance when they have work permits, practicing certificates, or practicing licences granted by authorised agencies of Vietnam and either indefinite-term labour contracts or definite-term labour contracts of at least one year with employers in Vietnam.”

Clause 2, Article 2 of this decree stipulates the exceptions whereby: “Employees regulated in Clause 1 of this article are not subject to compulsory social insurance under this decree if they are in one of the following cases: moving within a business as regulated in Clause 1 of Article 3 of the Government’s Decree No.11/2016/ND-CP, dated February 3, 2016, which regulates the implementation of some articles of the Labour Code on foreign employees in Vietnam; employees who reach the retirement age as regulated in Clause 1 of Article 187 of the Labour Code.”

Clause 1, Article 3 of the Government’s Decree No.11/2016/ND-CP defines that: “Foreign employees moving within a business 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.”

As pursuant to those regulations, foreign employees are subject to compulsory social insurance if they meet the following conditions: hold work permits, practicing certificates, or practicing licences granted by authorised agencies of Vietnam; have indefinite-term labour contracts or definite-term labour contracts of at least one year with employers in Vietnam; have not reached the age of 60 for men and 55 for women; and have not moved jobs within a business as stipulated in Clause 1, Article 3 of the Government’s Decree No.11/2016/ND-CP, including managers, managing directors, experts, and technical workers who are working at a foreign business, have been employed by that foreign business for at least 12 months, and have been sent to work at that firm’s representative body in Vietnam’s territory.”

The MoLISA has also asked the Vietnam Social Security and the departments of labour, invalids, and social affairs of provinces and cities to guide agencies and businesses to comply with the legal regulations./.