Compulsory social insurance premium rate in Vietnam in 2016

According to the provisions of the 2014 Law on Social Insurance, both employers and employees are obliged to pay compulsory social insurance. The compulsory social insurance premium rates depend on the type of employment contract and the employee's job.

Employees working under indefinite-term employment contracts, definite-term employment contracts, seasonal employment contracts from 03 months to less than 12 months; employment contracts with a term from 01 month to less than 03 months; officials and public employees; national defense workers, police workers, other workers in cryptographic organizations; enterprise managers, cooperative managers receiving monthly salaries shall contribute 8% of their monthly salary to the retirement and survivorship fund.

Employers shall contribute monthly on the salary fund used to calculate social insurance contributions for the aforementioned employees as follows: 3% to the sickness and maternity fund; 1% to the labor accident and occupational disease fund; and 14% to the retirement and survivorship fund.

The social insurance contribution rate for non-professional employees at commune, ward, and commune-level town shall be 8% statutory pay rate to the retirement and survivorship fund monthly. Employers shall contribute 14% statutory pay rate to the retirement and survivorship fund.

Monthly contributions by employers based on the statutory pay rate for each non-commissioned officer, enlisted soldier of the People's Army; non-commissioned officer, enlisted soldier of the People's Public Security serving for a definite term; military, police, and cryptographic students receiving monthly allowances shall be: 1% to the labor accident and occupational disease fund; and 22% to the retirement and survivorship fund.

Employees not working and not receiving salaries for 14 or more working days in a month, the employer is not required to pay social insurance for that month.

Note: Employees working under employment contracts with a term from 01 month to less than 03 months are subject to compulsory insurance obligations starting from January 01, 2018.

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