The document states that MOLISA earlier received written inquiries sent over by localities, enterprises and business associations, asking for clarification on the application of compulsory social insurance as regulated in the Government Decree No143/2018/NĐ-CP dated October 15, 2018.

It details the Law on Social Insurance and Law on Occupational Safety and Health regarding compulsory social insurance for employees who are foreign citizen working in Viet Nam.

In response to the questions, MOLISA said according to Clause 1, Article 2 of the decree, “employees who are foreign citizen working in Viet Nam shall be required to participate in the compulsory social insurance programme when they obtain work permits, practice certificates, practice licences issued by the authorities in Viet Nam, indefinite-term employment contracts or employment contracts valid for at least one year with employers in Viet Nam.”

Clause 2, Article 2 stipulates that employees referred to in Clause 1 of the Article shall be excluded from participation in the compulsory social insurance as provided herein in the following cases.

Firstly, they are intra-company transferees as stipulated in Clause 1, Article 3 of Government Decree No11/2016/ND-CP dated February 3, 2016, providing details of the implementation of certain Articles of the Labour Code regarding foreign employees working in Viet Nam.

Secondly, people who have reached retirement age under Clause 1, Article 187 of the Labour Code.

Clause 1, Article 3 stipulates in detail a number of articles of the Vietnamese Labour Code which apply for foreign employees working in Viet Nam.

Accordingly, foreign workers internally reassigned in the company are the managers, chief executive officers, experts and technicians of a foreign enterprise which has established a commercial presence in Viet Nam, are temporarily reassigned within the same enterprise to its commercial presence in Viet Nam and have been employed by the foreign enterprise for at least 12 months.

Based on regulations of the above-mentioned decrees, foreign employees who qualify for compulsory social insurance must meet following requirements:

They must have work permits, practice certificates, or practice licences granted by Vietnamese authorities.

They also must have a labour contract with indefinite-term or definite-term of at least full 12 months with employers in Viet Nam and be below 60 years old for males and 55 years old for females.

They must not be foreign managers, chief executive officers, experts and technicians who have been reassigned within the same enterprise to its commercial presence in Viet Nam and employed by the foreign enterprise for at least 12 months.

The MOLISA has requested the Viet Nam Social Security and local departments of Labour, Invalids and Social Affairs instruct organisations and businesses to follow regulations stipulated in the law./.