Quick answer
Foreign nationals working in Vietnam under an employment contract of 12 months or longer with a valid Work Permit or practicing certificate are subject to compulsory Social Insurance (SI) and Health Insurance (HI). The total statutory contribution is 30.0% of the monthly wage base (employer pays 20.5%, foreign employee pays 9.5%). Foreign workers are legally exempt from Unemployment Insurance (BHTN).
📋 Need to claim your SI refund upon leaving? Read our guide on One-Time Social Insurance Withdrawal for Foreigners or request claim assistance.
Social Insurance Eligibility for Foreign Employees
Under Article 2 of Decree 143/2018/NĐ-CP and Law 41/2024/QH15, a foreign employee must participate in compulsory social insurance when meeting all three criteria:
- Holds a valid Work Permit, Practicing Certificate, or Practicing License issued by Vietnamese state authorities.
- Works under an indefinite-term labor contract or a definite-term labor contract with a term of 12 months or more.
- Is employed by an enterprise or organization operating legally within Vietnam.
Statutory Social Insurance Exemptions
A foreign employee is legally exempt from compulsory social insurance if they meet any of the following statutory exceptions:
- Intra-Company Transferees (ICT): Managers, executive directors, and technical experts transferred within an enterprise under WTO commitments who have worked for the foreign parent company for at least 12 consecutive months.
- Workers Reaching Retirement Age: Employees who have already reached the statutory retirement age at the time of signing their labor contract.
- Bilateral Social Security Agreements: Citizens of countries holding a reciprocal social security treaty with Vietnam (e.g., South Korea) who provide an official Certificate of Coverage.
Mandatory Contribution Rates (30% Total)
The compulsory contribution structure for foreign personnel covers Social Insurance (25.5%) and Health Insurance (4.5%):
| Insurance Fund | Employer Rate | Foreign Employee Rate | Total Statutory Rate | | :--- | :---: | :---: | :---: | | Retirement & Survivorship (Hưu trí - Tử tuất) | 14.0% | 8.0% | 22.0% | | Sickness & Maternity (Ốm đau - Thai sản) | 3.0% | 0.0% | 3.0% | | Occupational Accidents & Diseases (TNLĐ - BNN) | 0.5% | 0.0% | 0.5% | | Health Insurance (BHYT) | 3.0% | 1.5% | 4.5% | | Unemployment Insurance (BHTN) | 0.0% (Exempt) | 0.0% (Exempt) | 0.0% | | TOTAL STATUTORY CONTRIBUTION | 20.5% | 9.5% | 30.0% |
Contribution Base Limit: The monthly salary used for SI and HI contributions is capped at 20 times the statutory base salary (mức lương cơ sở).
Social Insurance After Contract Ends
When a foreign worker's employment contract ends or their work permit expires:
- Compulsory Participation Halts: The employer must finalize all payments up to the departure month.
- Social Insurance Book Closing (Chốt sổ BHXH): The employer submits the physical SI book to Vietnam Social Security to obtain the final confirmation slip (tờ rời chốt sổ).
- One-Time Lump-Sum Withdrawal: Under Article 70 of Law 41/2024/QH15, foreign workers are entitled to claim a lump-sum payout immediately upon contract end without waiting 12 months.
Multiple Employers & Special Scenarios
* Simultaneous Labor Contracts: If a foreigner holds contracts with multiple employers, compulsory social insurance is contributed under the first signed labor contract. Health insurance is paid under the contract with the highest salary. * Tax Deductibility: All compulsory employee social insurance contributions (9.5%) are fully deductible from taxable salary before calculating monthly Personal Income Tax (PIT).
🛡️ Have questions about compliance or book closing? Contact our Social Insurance Specialists or check our Departure Document Checklist.