Summary of decree 143/2018/ND-CP, Providing guidance on compulsory social insurance contribution to foreigners working in Vietnam
On 15th October 2018, the Government issued Decree 143/2018/ND-CP promulgating detailed guidance for Law on Social Insurance and Law on Occupational Safety and Hygiene regarding compulsory insurance contribution for foreigners working in Vietnam. The Decree 143/2018/ND-CP will take effect on 1 December 2018. Having some important points as follows:
1. Subjective to the compulsory social insurance contribution
Foreigners working in Vietnam with a work permit, practicing certificate, or practicing license granted by Vietnamese authorities and under indefinite-term labour contracts with a term of one full year and above shall be subject to the compulsory social insurance.
Foreigners working in Vietnam under an internal mobilization scheme of labour within a group and reaching retirement age shall not be subject to the compulsory social insurance.
2. Contribution ratio and the salary base for social insurance contribution
Contribution ratio and the timeline for contribution:
The salary base for compulsory social insurance contribution is the contractual salary, contractual allowance and other supplementary payments stipulated under the labour contract, capped at 20 times of the basic salary stipulated by the Government.
3. Social insurance benefits for foreigners
Foreign employees are eligible to enjoy social insurance benefits in case of sickness, maternity, workplace accident, occupational disease, retirement, and survivor benefits.
Foreign employees are allowed to claim one-time social insurance payment in below cases:
- Reaching retirement age but the social insurance contribution period is not enough 20 years.
- Having terminal illnesses in accordance with the detailed provisions of the Ministry of Health
- Being eligible to receive retirement insurance but no longer live in Vietnam
- Practicing licenses and work permits are expired and not extended
In according to the Law on Social Insurance in 2014, for each year of social insurance contribution, a foreigner can be entitled to 02 months of the average monthly salary base of social insurance contribution.
Where there are any differences in regulations between Decree and other international agreements that Vietnam is a member or signatory, the regulations in the international agreements will prevail.
