What is the social insurance contribution rate of enterprises and employees in Vietnam from July 1, 2025?

What is social insurance in Vietnam?

Based on Clause 1, Article 3 of the Law on Social Insurance 2024, social insurance is defined as a guarantee to replace or partially compensate the income of social insurance participants when their income decreases or is lost due to illness, maternity, occupational accidents, occupational diseases, retirement, or death, on the basis of contributions made to the social insurance fund or state budget assurance.

What is the social insurance contribution rate of enterprises and employees in Vietnam from July 1, 2025?​ (Image from the Internet)

What is the social insurance contribution rate of enterprises and employees in Vietnam from July 1, 2025?​

Based on Article 32 of the Law on Social Insurance 2024 regarding the social insurance contribution rate:

Article 32. Mandatory Social Insurance Contribution Rates

1. The mandatory social insurance contribution rate includes:

a) 3% of the salary serving as the basis for social insurance contributions to the sickness and maternity fund;

b) 22% of the salary serving as the basis for social insurance contributions to the pension and survivors' fund.

2. The voluntary social insurance contribution rate is 22% of the income serving as the basis for social insurance contributions to the pension and survivors' fund.

Based on Article 33 of the Law on Social Insurance 2024 regarding the rate, method, and deadline for mandatory social insurance contributions by employees:

Article 33. Rate, Method, and Deadline for Mandatory Social Insurance Contributions by Employees

1. The contribution rate and method for subjects specified in points a, b, c, d, i, k, and l of Clause 1 and Clause 2 of Article 2 of this Law are as follows:

a) Monthly contribution rate is 8% of the salary serving as the basis for mandatory social insurance contributions to the pension and survivors' fund;

b) Contributions are made to the social insurance agency on a monthly basis.

For subjects specified at point a of Clause 1, Article 2 of this Law who receive salaries based on products, contracts in enterprises, cooperatives, unions of cooperatives, business households operating in agriculture, forestry, fishery, or salt production, contributions are made on a monthly basis, every 3 months, or every 6 months.

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Based on Article 34 of the Law on Social Insurance 2024 regarding the rate, method, and deadline for mandatory social insurance contributions by employers:

Article 34. Rate, Method, and Deadline for Mandatory Social Insurance Contributions by Employers

1. Employers make monthly contributions to mandatory social insurance calculated on the basis of the salary of subjects specified in points a, b, c, d, i, k, and l of Clause 1 and Clause 2 of Article 2 of this Law as follows:

a) 3% to the sickness and maternity fund;

b) 14% to the pension and survivors' fund.

2. Employers make monthly contributions of 22% of the salary serving as the basis for mandatory social insurance contributions to the pension and survivors' fund for subjects specified in points d and e of Clause 1, Article 2 of this Law.

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Based on Article 4 of Decree 58/2020/ND-CP on the rate and method of contributions to the Occupational Accident and Disease Insurance Fund:

Article 4. Rate and Method of Contributions to the Occupational Accident and Disease Insurance Fund

1. Employers contribute monthly on the basis of social insurance salary funds for employees specified in points a, b, c, d, e, and h Clause 1 and Clause 2 of Article 2 of the Law on Social Insurance, excluding household workers, according to one of the following rates:

a) The normal contribution rate is 0.5% of the salary fund serving as the basis for social insurance contributions; applicable to officials and public employees and those in the armed forces under agencies of the Communist Party, the State, socio-political organizations, military, police, public service providers using the state budget;

b) The contribution rate is 0.3% of the salary fund serving as the basis for social insurance contributions applicable to enterprises meeting conditions as specified in Article 5 of this Decree.

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The social insurance contribution rates from July 1, 2025, for enterprises and employees are regulated as follows:

[1] For Vietnamese Employees

- Employers

- Employees

Thus, the mandatory social insurance contribution rate for 2025 for Vietnamese employees is 32%.

In which:

- Enterprises (employers) contribute 21.5%: Including 14% for pension, 3% for sickness and maternity policies, 0.5% for occupational accident and disease policies, 1% unemployment insurance, and 3% health insurance.

- Employees contribute 10.5%: Including 8% to the pension fund, 1% unemployment insurance, and 1.5% health insurance.

[2] For Foreign Employees

- Employers

- Foreign Employees

Thus, the mandatory social insurance contribution rate for 2025 for foreign employees is 30%.

(*) For enterprises operating in industries with high risks of occupational accidents and diseases, if eligible, they may contribute to the occupational accident and disease insurance fund at a lower rate of 0.3%, with a request and approval by the Ministry of Labor, Invalids, and Social Affairs.

What are policies of compulsory social insurance in Vietnam?

Based on Article 4 of the Law on Social Insurance 2024, mandatory social insurance includes the following policies:

- Sickness

- Maternity

- Pension

- Survivors

- Occupational accident and disease insurance as regulated by the Law on Occupational Safety and Hygiene.