Compulsory Social Insurance Contributions for Foreign Employees in Vietnam

Any foreign nationals employed for more than a year in Vietnam, and who have obtained a work permit are required to participate in the compulsory social insurance.

From January 2022 onwards, the Social Insurance contribution rate for foreign employees has been increased to match the rate applied to local employees. This measure is intended to level the playing field for local employees and to prevent systematic advantages for foreign employees.

The contribution rates for foreign employees and their employers are as follows:

(*) Enterprises are entitled to a premium rate of 0% contribution to the occupational accident and disease benefit fund from July 1^st, 2021 to June 30^th, 2022 as a support measure for employers due to the coronavirus pandemic according to Resolution 68/NQ-CP of the Government.

The base for calculating the contributions is the monthly salary as stipulated in the labor contract. However, the salary for the calculation/payment of social insurance and health insurance is capped at 29.8 million VND, the equivalent of 20 times the official base salary. Currently, the national base salary applied in 2022 is 1,490,000 VND/month.