Who Must Enroll
Foreign nationals working in Vietnam are required to participate in compulsory social insurance if they meet all of the following conditions:
- They hold a valid work permit, practicing certificate, or practicing license issued by a Vietnamese authority
- They are working under a labor contract of 12 months or longer
- They are not an intra-company transferee (posted within the same enterprise from a foreign parent)
- They have not reached statutory retirement age (60 for men, 55 for women, with plans to equalize by 2035)
- Their home country has not signed a bilateral social security agreement with Vietnam that provides full exemption
Who is Exempt
| Category | Reason |
|---|---|
| Intra-company transferees | Covered under home country scheme |
| Contracts under 12 months | Below threshold for mandatory enrollment |
| Those at or above retirement age | Statutory exemption |
| Countries with bilateral treaties | Treaty supersedes local law |
Note: Vietnam currently has bilateral social security agreements with a limited number of countries. Check with your embassy or a local advisor to confirm your country's treaty status.
Contribution Rates
From July 1, 2025 (New Social Insurance Law No. 41/2024/QH15)
Employee contributions (foreign national):
| Fund | Rate |
|---|---|
| Retirement & Survivors | 8% |
| Sickness & Maternity | 0% |
| Occupational Accident & Disease | 0% |
| Health Insurance | 1.5% |
| Unemployment Insurance | Exempt |
| Total employee | 9.5% |
Employer contributions (for a foreign employee):
| Fund | Rate |
|---|---|
| Retirement | 14% |
| Sickness & Maternity | 3% |
| Occupational Accident & Disease | 0.5% |
| Health Insurance | 3% |
| Unemployment Insurance | 0% |
| Total employer | 20.5% |
Comparison: Vietnamese vs Foreign Employee Total
| Contributor | Vietnamese | Foreign |
|---|---|---|
| Employee total | 10.5% | 9.5% |
| Employer total | 23.5% | 20.5% |
Contribution Caps
Contributions are not calculated on your full salary once you exceed the statutory ceiling:
Social Insurance + Health Insurance cap:
- Maximum contribution base: 20 × reference level
- Reference level (2026): VND 2,340,000/month
- Cap: VND 46,800,000/month
At VND 46,800,000 cap, maximum monthly contributions for a foreign employee:
- Employee side: 9.5% × 46,800,000 = VND 4,446,000
- Employer side: 20.5% × 46,800,000 = VND 9,594,000
Unemployment Insurance cap (Vietnamese employees only):
- 20 × regional minimum wage
- Zone 1 (Hanoi, HCMC): approximately VND 106,200,000/month
July 2025 Law Changes
The new Social Insurance Law (No. 41/2024/QH15), effective July 1, 2025, introduced several significant changes:
1. Expanded Contribution Base
Previously, contributions were calculated on base salary only. From July 2025, the base now includes:
- Base salary
- Allowances (position, seniority, skill, etc.)
- Regular additional agreed payments (performance bonuses paid monthly, etc.)
This change may increase the actual contribution amounts for employees who receive significant allowances, even if the rates themselves haven't changed.
2. Reduced Pension Eligibility Threshold
- Old law: 20 years of contributions required to qualify for pension
- New law: Only 15 years of contributions required
This is particularly significant for mid-career expats who may accumulate 15+ years before reaching retirement age.
3. Broader Coverage
The new law extends coverage to some categories of workers previously exempt, including certain part-time workers and platform/gig economy workers (phased implementation).
Health Insurance
State Health Insurance (SHI) is mandatory for all employees on qualifying contracts — both Vietnamese and foreign.
Employee contribution: 1.5% of capped salary Employer contribution: 3% of capped salary
What SHI Covers
SHI in Vietnam provides access to the public hospital network with subsidised fees. However, for foreign employees the practical limitations are significant:
- Language barriers at many public hospitals
- Reimbursement rates are low (often 80% of a co-pay, not full cost)
- International standards of care are not guaranteed at public facilities
- Specialist referrals can be slow
Most foreign employees in Vietnam use SHI as a legal requirement but rely on private international health insurance for actual medical care.
Pension & Lump-Sum Refund on Departure
Foreign employees who leave Vietnam before reaching retirement age have two options:
Option 1: Leave Contributions in the System
If you have 15+ years of contributions (from July 2025), you can apply for a pension when you reach retirement age — even if you are no longer in Vietnam. Pension payments can be transferred abroad.
Option 2: Lump-Sum Refund
If you have fewer than 15 years of contributions, you can request a one-time lump-sum refund of your retirement and survivor fund contributions upon departure from Vietnam.
To claim:
- Submit application to the Vietnam Social Insurance Authority (VSIA) — can be done through your employer
- Provide proof of departure / termination of labor contract
- Allow approximately 5–7 business days for processing
- Funds are transferred to a VND bank account at a Vietnamese bank
Important: You can only claim the refund for the retirement/survivors portion (8% employee side). Health Insurance contributions are not refundable.
Private Health Insurance
Given the practical limitations of state health insurance, most foreign employees in Vietnam maintain private international coverage. Common providers:
| Provider | Type | Notes |
|---|---|---|
| Allianz Care | International | Comprehensive, widely used by expats |
| Cigna Global | International | Strong Asia network |
| AXA | International | Good coverage in Vietnam |
| William Russell | International | Popular with UK expats |
| Pacific Cross | Regional | Strong Vietnam/SE Asia network |
| Bao Viet | Local | More affordable, Vietnam network |
Estimated cost: USD 200–500/month for comprehensive individual coverage, depending on age and plan.
PIT treatment: Premiums paid by employers for private health insurance are generally treated as taxable benefits in kind for the employee. Premiums paid by employees themselves from their net salary are not deductible from PIT.
PIT Treatment of Insurance
Understanding how insurance interacts with your PIT calculation:
| Insurance Type | PIT Treatment |
|---|---|
| Employee's own compulsory SI + HI contributions | Deductible from assessable income before PIT |
| Employer's statutory contributions on your behalf | Not a taxable benefit to you |
| Private health insurance premiums (employer-paid) | Taxable benefit in kind |
| Private health insurance (employee self-paid) | Not deductible |
Sources: Social Insurance Law No. 41/2024/QH15, Decree 143/2018/ND-CP, EY Vietnam Tax Alert (June 2025), Alitium Vietnam. For official regulations: [vbpl.vn](https://vbpl.vn).