Foreign Employees Signing a 5-Month Labor Contract: Are They Required to Pay Social Insurance?

According to Clause 1, Article 2 of Decree 143/2018/ND-CP stipulates as follows:

Foreign workers working in Vietnam who are subject to compulsory social insurance must have a work permit or a practice certificate or a practice license issued by a competent authority of Vietnam and have an indefinite-term labor contract or a definite-term labor contract with a term of at least 1 year with an employer in Vietnam.

Thus, foreign workers are required to participate in compulsory social insurance when:

- They have a work permit, practice certificate, or practice license issued by a competent authority of Vietnam;

- They have an indefinite-term labor contract or a definite-term labor contract with a term of at least 1 year with an employer in Vietnam.

Therefore, if the definite-term labor contract is less than 1 year, it is not required to participate in compulsory social insurance. So, in the case of your company signing a 5-month labor contract with a foreigner, it is not required to pay social insurance for them.

Respectfully!