Can foreign workers participate in social insurance in Vietnam?

1. Can foreign workers participate in social insurance in Vietnam?

Article 2 of the Law on Social Insurance 2014 provides for subjects of application as follows:

1. Employees being Vietnamese citizens shall be covered by compulsory social insurance, including:

a/ Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full 3 months and under 12 months, including also labor contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labor law;

b/ Persons working under labor contracts with a term of between full 1 month and under 3 months;

c/ Cadres, civil servants and public employees;

d/ Defense workers, public security workers and persons doing other jobs in cipher organizations;

dd/ Officers and professional army men of the people's army; officers and professional non-commissioned officers and officers and technical non- commissioned officers of the people's public security; and persons engaged in cipher work and enjoying salaries like army men;

e/ Non-commissioned officers and soldiers of the people’s army; non- commissioned officers and soldiers on definite-term service in the people’s public security; army, public security and cipher cadets who are entitled to cost- of-living allowance;

g/ Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;

h/ Salaried managers of enterprises and cooperatives;

i/ Part-time staffs in communes, wards and townships.

2. Employees who are foreign citizens working in Vietnam with work permits or practice certificates or practice licences granted by competent Vietnamese agencies shall be covered by compulsory social insurance under the Government’s regulations.

3. Employers covered by compulsory social insurance include state agencies, non-business units and people's armed forces units; political organizations, socio-political organizations, socio-politico-professional organizations, socio-professional organizations and other social organizations; foreign agencies and organizations, and international organizations operating in the Vietnamese territory; enterprises, cooperatives, individual business households, cooperative groups, and other organizations and individuals that hire or employ employees under labor contracts.

4. Persons covered by voluntary social insurance are Vietnamese citizens aged full 15 years or older and not defined in Clause 1 of this Article.

5. Agencies, organizations and individuals involved in social insurance.

The subjects defined in Clauses 1, 2 and 4 of this Article are below collectively referred to as employees.

According to current regulations, foreign workers working in Vietnam with work permits will be allowed to participate in compulsory social insurance.

2. What benefits will foreign workers with work permits participating in compulsory social insurance in Vietnam enjoy?

In Article 5 of Decree 143/2018/ND-CP, there are regulations on compulsory SI benefits for foreign workers as follows:

1. Employees prescribed in clause 1 Article 2 hereof shall be entitled to the following compulsory SI benefits: sickness, maternity, occupational accident, disease, retirement and death insurance benefits.

2. Compulsory SI benefits to which employees referred to in clause 1 Article 2 hereof are entitled shall vary depending on the SI participation period under the provisions of this Decree.

In Clause 1, Article 2 of Decree 143/2018/ND-CP, it is stipulated as follows:

1. Employees who are foreign nationals working in Vietnam shall be required to participate in the compulsory SI program if they obtain work permits, practicing certificates, practicing licenses issued in Vietnam, indefinite-term employment contracts or employment contracts valid for at least one year with employers in Vietnam.

Thus, foreign workers with work permits participating in compulsory social insurance in Vietnam will be entitled to the following compulsory SI benefits: sickness, maternity, occupational accident, disease, retirement and death insurance benefits.

3. What is transfer of SI benefits for beneficiaries of monthly retirement pensions or SI benefits that no longer resides in Vietnam?

Article 11 of Decree 143/2018/ND-CP has the following provisions:

1. If the insured employee who is currently entitled to monthly retirement pensions and SI benefits is not residing in Vietnam, he/she may authorize another person to receive these amounts. The one-off benefit payment in his/her wish shall be approved.

2. The rate of the one-off benefit payment to the employee referred to in clause 1 of this Article shall be subject to clause 2 and clause 3 Article 65 of the Law on Social Insurance.

According to this Article, transfer of SI benefits for beneficiaries of monthly retirement pensions or SI benefits that no longer resides in Vietnam will be implemented as above.

Best Regards!