Vietnam: 2 ways for employees to still enjoy health insurance after leaving work

According to Decision No. 595/QĐ-BHXH of Vietnam Social Security, when an enterprise reports a reduction in the number of people participating in health insurance at its unit, the health insurance card of the employee who takes leave will no longer be valid. According to this provision, when leaving the company, the employee will not be entitled to health insurance benefits when going for medical examination and treatment.

However, employees can choose one of the following two ways to still enjoy health insurance:

Option 1: Participating in voluntary health insurance in the form of a household

According to Article 5 of the Decree No. 146/2018/NĐ-CP of Vietnam’s Government, persons whose names are inscribed in family household records and temporary residence records, except those specified below, are entitled to group of family-based health insurance policyholders:

- Group of health insurance policyholders whose contributions are paid by both employees and employers;

- Group of health insurance policyholders whose contributions are paid by social insurance agencies;

- Group of health insurance policyholders whose contributions are paid by the state budget;

- Group of health insurance policyholders whose contributions are supported by the state budget;

- Group of health insurance policyholders whose contributions are paid by employees.

(The above-mentioned groups are listed in Articles 1, 2, 3 ,4, 6 of the Decree No. 146/2018/NĐ-CP)

The health insurance contribution rate of those subject to group of family-based health insurance policyholders are as follows:

- The first policyholder shall be required to pay 4.5% of the base pay rate (the current base pay rate is VND 1.490.000/month according to the Decree No. 38/2019/NĐ-CP);

- The second policyholder shall be required to pay 70% of the contribution rate of the first policyholder;

- The third policyholder shall be required to pay 60% of the contribution rate of the first policyholder;

- The fourth policyholder shall be required to pay 50% of the contribution rate of the first policyholder;

- The fifth and subsequent policyholder shall be required to pay 40% of the contribution rate of the first policyholder.

Option 2: Apply for unemployment allowance

According to Article 51 of the Law on Employment 2013 of Vietnam, persons on unemployment allowance are entitled to health insurance benefits in accordance with the law on health insurance. Social insurance organizations shall pay health insurance premiums for persons on unemployment allowance from the Unemployment Insurance Fund.

View the procedures for unemployment allowance here.

Employees during the period of enjoying unemployment benefits will enjoy health insurance paid by the social insurance organization. However, according to Clause 2 Article 50 of the Law on Employment 2013 of Vietnam, the duration of unemployment allowance receipt is based on the number of months of payment of unemployment insurance premiums. This duration is 3 months if the period of payment of unemployment insurance premiums is between full 12 months and full 36 months, which is added with 1 month for each additional period of payment of full 12 months, but must not exceed 12 months. At the end of this period, employees can choose to participate in voluntary health insurance in the form of households to continue enjoying health insurance.

Thuy Tram

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