According to current regulations, as from July 1, the compulsory insurance premiums for a foreign employee working in Vietnam will be paid based on the employee’s monthly salary as follows:

- To be paid by the employee: 8 percent of the monthly salary to the retirement and survivorship fund and 1.5 percent to the health insurance fund;

- To be paid by the employer: 14 percent of the monthly salary to the retirement and survivorship fund, 3 percent to the sickness and maternity fund, and 0.5 percent to the work injury and occupational disease fund as the case may be.

Particularly, in case the employer is an enterprise operating in a sector posing a high level of occupational accident and disease risks and meeting several certain conditions, the rate of contribution to the work injury and occupational disease fund will be 0.3 percent rather than the normal rate of 0.5 percent.

Hence, the foreign employee’s total contribution to compulsory insurance funds is equal to 9.5 percent of his monthly salary while his employer will make a payment equaling 20.5 percent of the employee’s monthly salary.