DO FOREIGN WORKERS HAVE TO JOIN SOCIAL INSURANCE?

In today’s globalization era, besides Vietnamese citizens participating in labor, there are also a part of foreign workers. So, for foreign workers, can they participate in social insurance when working in our country? If so, how does the law regulate the level of social insurance participation for this group of subjects? Through today’s article, let’s find out more details with Pham Consult on this topic!

Can foreign workers participate in social insurance?

According to the provisions of Article 2 of Decree 143/2018/ND-CP, the subjects of application are as follows:

1. Employees who are foreign citizens working in Vietnam are eligible to participate in compulsory social insurance when they have a work permit or a practice certificate or a practice license issued by a Vietnamese competent authority. Male and having an indefinite-term labor contract or a definite-term labor contract of full 01 year or more with an employer in Vietnam.
2. The employees specified in Clause 1 of this Article are not eligible to participate in compulsory social insurance as prescribed in this Decree when falling into one of the following cases:
3. a) Moving within an enterprise according to the provisions of Clause 1, Article 3 of the Government’s Decree No. 11/2016/ND-CP dated February 3, 2016 detailing the implementation of a number of articles of the Labor Code. about foreign workers working in Vietnam;
4. b) The employee has reached the retirement age as prescribed in Clause 1, Article 187 of the Labor Code.

 

Thus, foreign workers must participate in compulsory social insurance when they have a work permit or a practice certificate or a practice license issued by a competent authority of Vietnam and have a labor contract. definite-term, definite-term labor contracts of full 01 year or more with employers in Vietnam.

 

Note, in case foreign employees move internally within the enterprise and reach retirement age, they are not required to participate in social insurance.

 

How is the compulsory social insurance premium for foreign workers regulated?

Pursuant to Article 12 of Decree 143/2018/ND-CP stipulating the payment rates and payment methods of employees as follows:

Pay rate and payment method of employees

1. From January 1, 2022, employees defined in Clause 1, Article 2 of this Decree, shall pay 8% of their monthly salary to the retirement and survivorship fund every month.
2. Employees who do not work and do not receive wages for 14 or more working days in a month shall not pay social insurance premiums for that month. This time is not counted to enjoy social insurance, except in case of taking maternity leave.

According to the above regulations, the compulsory social insurance contribution rate for foreign workers is 8% of the monthly salary to the retirement and survivorship fund.

Employees who do not work and do not receive wages for 14 working days or more in a month shall not pay social insurance premiums for that month.

And this time is not counted to enjoy social insurance, except in case of taking maternity leave.

 

How is the compulsory social insurance premium for foreign employers determined?

According to Article 13 of Decree 143/2018/ND-CP, Clause 2, Article 16 of Decree 58/2020/ND-CP stipulates the payment rate and payment method of the employer as follows:

The employer’s payment rate and payment method

1. Employers specified in Clause 3, Article 2 of this Decree shall make monthly payments on top of the employee’s monthly salary on which social insurance premiums are based as follows:
2. a) 3% to the sickness and maternity fund;
3. c) 14% to the retirement and survivorship fund from January 1, 2022.
4. Employers are not required to pay social insurance premiums for employees specified in Clause 2, Article 12 of this Decree.
5. Based on the ability to balance the occupational accident and disease insurance fund, the Government will consider adjusting the premium rate at Point b, Clause 1 of this Article from January 1, 2020.
6. Employees who enter into labor contracts with more than one employer and are subject to the application of compulsory social insurance shall only pay social insurance premiums for the contract. first contracted labor. Particularly for participation in the labor accident and occupational disease insurance fund, the employer must pay according to each signed labor contract.

Accordingly, the monthly payment of compulsory social insurance premiums for foreign employers calculated on the monthly salary fund on which social insurance premiums are based of foreign workers is 3% to the sickness and maternity fund and 14% goes to retirement and survivorship funds.

Employers are not required to pay social insurance premiums for foreign workers who do not work and do not receive wages for 14 or more working days in a month.

 

Thus, when joining the labor force in Vietnam, if you have a work permit or practice certificate or a practice license issued by a competent Vietnamese agency and have an indefinite-term labor contract, For a definite term labor contract of full 01 year or more with an employer in Vietnam, the foreign worker must participate in social insurance. Through the above article, Pham Consult has clarified this issue, if you have any questions, please contact us for detailed answers!