Foreigners working in Vietnam must pay 8% of their salary into the social insurance fund.

According to the proposal of the Ministry of Labor, Invalids and Social Affairs, foreign workers in Vietnam for a period of 1 month or more will have to pay compulsory social insurance.

The Ministry of Labor, War Invalids and Social Affairs has just released a draft "Decree on compulsory social insurance for foreign employees working in Vietnam" to solicit comments.

Illustration photo.

According to the draft, foreign workers working under indefinite-term labor contracts, fixed-term labor contracts, seasonal labor contracts or contracts for a specific job with a term of at least 1 month will have to pay compulsory social insurance. Compulsory social insurance regimes include sickness, maternity, occupational diseases, work accidents, retirement, and death. Monthly salary for social insurance payment includes: salary, salary allowances, and other supplements as prescribed.

Every month, foreign employees must pay social insurance at the rate of 8% of their salary to the pension and death fund. Foreign employers must pay a maximum of 18% of the employee's monthly salary, including: 3% to the sickness and maternity fund; up to 1% to the occupational accident and disease fund; and 14% to the pension and death fund.

In case an employee does not work and does not receive salary for 14 working days or more in a month, he/she will not be entitled to social insurance for that month. This period is not counted for social insurance, except in the case of maternity leave.

The one-time social insurance benefit regime applies to employees whose contracts have expired and who do not continue working, employees receiving pensions and monthly allowances who are no longer residing in Vietnam if they request./.

According to VOV