Do employees who are foreign nationals working in Vietnam participate in compulsory social insurance?

Do employees who are foreign nationals working in Vietnam participate in compulsory social insurance?

Pursuant to Clause 1, Article 2 of Decree 143/2018/ND-CP stipulating cases of social insurance application for foreign employees as follows:

Subjects of application

1. Employees who are foreign nationals working in Vietnam shall be required to participate in the compulsory SI program if they obtain work permits, practicing certificates, practicing licenses issued in Vietnam, indefinite-term employment contracts or employment contracts valid for at least one year with employers in Vietnam.

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Thus, employees who are foreign nationals working in Vietnam participate in compulsory social insurance when:

- Have a work permit or practice certificate or practice license issued by a competent Vietnamese agency

- Have an indefinite-term labor contract or a definite-term labor contract of 1 year or more with an employer in Vietnam.

Do employees who are foreign nationals working in Vietnam participate in compulsory social insurance? (Image from the Internet)

What are cases where employees who are foreign nationals working in Vietnam are not subject to compulsory social insurance?

According to Clause 2, Article 2, Decree 143/2018/ND-CP stipulates that employees who are foreign nationals working in Vietnam are not subject to compulsory social insurance as follows:

2. Employees referred to in clause 1 of this Article shall be excluded from participation in the compulsory social insurance as provided herein if:

a) they are intra-company transferees as stipulated in clause 1 Article 3 of the Government’s Decree No. 11/2016/ND-CP dated February 3, 2016, providing details of the implementation of certain articles of the Labor Code regarding foreign employees working in Vietnam.

b) they reach retirement age under clause 1 Article 187 of the Labor Code.

Which employees who are foreign nationals working in Vietnam are not subject to a work permit?

Pursuant to Article 7 of Decree 152/2020/ND-CP amended by Points a, Point b, Clause 4, Article 1 of Decree 70/2023/ND-CP regulating cases where foreign workers are not subject to work permits , include:

Without regard to the cases in clauses 3, 4, 5, 6, 7 and 8 Article 154 of the Labor Code, a foreign worker is exempt from a work permit if:

1. He/she is the owner or capital contributor of a limited liability company with a capital contribution value of at least 3 billion dong.

2. He/she is the Chairperson or a member of the Board of Directors of a joint-stock company with a capital contribution value of at least 3 billion dong.

3. He/she is an intra-company transferee within 11 sectors in the schedule of commitments in services between Vietnam and WTO, including: business services, communication services, construction services, distribution services, educational services, environmental services, financial services, health services, tourism services, recreational and cultural services, and transport services.

4. He/she enters Vietnam to provide professional and engineering consulting services or perform other tasks intended for research, formulation, appraisal, supervision, evaluation, management and execution of programs and projects using official development assistance (ODA) in accordance with regulations or agreement in international treaties on ODA signed between the competent authorities of Vietnam and foreign countries.

5. He/she is granted a communication and journalism practicing certificate in Vietnam by the Ministry of Foreign Affairs as per the law.

6. He/she is sent by a foreign competent authority or organization to Vietnam to teach or act as a manager or executive at an educational institution, which is established in Vietnam under a proposal of a foreign diplomatic mission or intergovernmental organization; or of a facility which is established under international treaties to which Vietnam is a signatory.

7. He/she is a volunteer as specified in clause 2 Article 3 of this Decree.

8. He/she enters Vietnam to hold the position of a manager, executive, expert or technical worker for a period of work of less than 30 days and up to 3 times a year.

9. He/she enters Vietnam to implement an international agreement to which a central or provincial authority is a signatory as per the law

10. He/she is a student studying at a foreign school or training institution which has a probation agreement with an agency, organization or enterprise in Vietnam; or a probationer or apprentice on a Vietnam sea-going ship.

11. He/she is a relative of a member of foreign representative body in Vietnam as specified in point l clause 1 Article 2 hereof.

12. He/she obtains an official passport to work for a regulatory agency, political organization, or socio-political organization.

13. He/she takes charge of establishing a commercial presence.

14. He/she is certified by the Ministry of Education and Training as a foreign worker entering Vietnam for the following purposes:

a) Teaching, research;

b) Acting as a manager, executive, principal, deputy principal of an educational institution, which is established in Vietnam under a proposal of a foreign diplomatic mission or intergovernmental organization.

Best regards!