Overview of Vietnam Social Security Declaration

Vietnam Social Insurance is a state agency under the Government, having the function of organizing the implementation of social insurance and health insurance regimes and policies; organize the collection and expenditure of unemployment insurance regime; management and use of insurance funds; specialized inspection of payment of social insurance, unemployment insurance and health insurance according to the provisions of law.

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Types of Vietnam Social Security Insurance:

+ Social Insurance: The most crucial and fundamental element of the Vietnamese social security system is social insurance. Due to unpaid leave, maternity leave, or retirement, this insurance replaces lost income (Vietnam pensions plan).

+ Health Insurance: According to national standards, Vietnam health insurance will assist in covering medical bills and treatment costs. Employers would contribute 3% and employees would contribute 1.5% of their set monthly gross income to the fund (max. of 20 times national minimum wage). A Vietnam health insurance card will be issued following successful registration (done by the company).

+ Unemployment Insurance: The Vietnam unemployment insurance fund will receive 1% of the gross fixed income that the Employer and Employee each get (up to a maximum of 20 times the Regional Minimum Wage). The employer could avoid having to pay severance pay or an allowance in the event of contract termination by getting this insurance. Upon losing their employment, an employee who has paid for state insurance may be eligible to receive this compensation from the government.

Both the company and the employee are obligated to make the mandatory minimum contributions. These social insurances must be paid by all domestic and international businesses operating in Vietnam for all workers covered by employment contracts with a fixed duration of more than three months or with indeterminate lengths.

Changing in Social Security Insurance for Foreigners in Vietnam

a. Increase in Social Insurance Rates for Foreign Employees in Vietnam

* Employee's contribution rate

Since January 1, 2022, Vietnam has increased the social insurance rates for foreign employees. Foreign employees will have to pay a 8% rate, while employers contribute 17.5% to the social insurance fund. This will be in line with the same rates as Vietnamese employees.

The compulsory social insurance program for foreign employees provides coverage for illness, maternity, occupational diseases, accidents, retirement, and death, just like it does for Vietnamese employees.

(Asia Briefing, 2022)

In addition, if you do not work and do not receive a salary for 14 working days or more in a month, you will not pay social insurance for that month. Except when taking maternity leave, this period is not taken into account when applying for social insurance benefits.

* Employer's contribution rate

According to the provisions of Clause 1, Article 13, Decree No. 143/2018/ND-CP, the following are the monthly contributions that the employer is required to make to the fund used to calculate social insurance premiums:

+ Pay 3% to the sickness and maternity fund;

+ Pay 0.5% to the labor accident and occupational disease insurance fund;

+ Pay 14% to the retirement and survivorship fund from January 1, 2022.

b. Health insurance for foreigner workers.

In the regulations, health insurance for foreigners also includes the level of health insurance benefits. According to the law, the monthly health insurance premium is 4.5% of the monthly salary, of which the employer will pay 3% and the employee is responsible for 1.5%. The monthly salary on which health insurance premiums are based is the monthly salary on which the compulsory social insurance premium is based. Thus, the law on health insurance does not distinguish between Vietnamese and Foreign employees when paying for health insurance. 

The health insurance benefits for foreigners is similar to that for Vietnamese workers as specified in Article 22 of the Law on Health Insurance Amended and Supplemented in 2014. Specifically:

Employees participating in health insurance at the enterprise will enjoy 80% of medical examination and treatment costs when they go to medical facilities at appropriate levels. In case employees go to medical examination and treatment at inappropriate level, they will be entitled to the following benefits:

+ 40% of inpatient treatment costs when medical examination and treatment at a central hospital.

+ 60% of inpatient treatment costs when medical examination and treatment at provincial hospitals.

+ 100% of medical examination and treatment costs at the district level.

However, when workers receive outpatient treatment at central or provincial levels, they will have to pay all treatment costs themselves.

c. What are the criteria for social and health insurance contribution for foreign workers in Vietnam?

Foreign workers must purchase social insurance if they match all of the following criteria, according to the Ministry of Labor, Invalids, and Social Affairs (MoLISA):

+ Obtaining a work permit to work in Vietnam;

+ Being employed under a Vietnamese labor contract having a term of at least one year, whether it be indefinite or definite;

+ Under the age of 60 for males and 55 for women (note that the current labor code gradually raises the retirement age to 62  for men and 60 for women by 2028 and 2035, respectively);

+ These internal transactions are not (prior to being moved to the corporation's Vietnam operations, the person must have spent at least a year working as a manager, executive, expert, or technician for the foreign organization).

The following circumstances allow a foreign worker whose employment in Vietnam has ended to ask the social insurance organization for a one-time refund depending on the amount they have paid.

+ Reach retirement age but haven't made 20 years' worth of social insurance contributions; 

+ Possess a deadly illness, such as HIV, polio, cancer, or any illness within the Ministry of Health's control; 

+ Having met the requirements for a pension but no longer residing in Vietnam; 

+ Terminating their employment agreement or allowing their work visa to expire without being renewed;

Foreign employees must submit the allowance request 30 days before their employment contract or work visa expires. Within 10 days after receiving the allowance, the insurance authority must settle and pay it to the employee.

About health insurance, to participate, foreigners need to meet the following conditions:

+ Foreign workers with indefinite-term labor contracts; and 3 months or more.

+ Foreigners who study abroad and study in Vietnam are granted scholarships by the State of Vietnam.

Social Security Declaration in Vietnam

a. Social Security Declaration

Here is the form of Social Security Declaration in Vietnam that is published by the Government: VIETNAM SOCIAL SECURITY DECLARATION 

b. Online Social Security Declaration

Currently, to carry out social insurance procedures, people can do it through the social insurance public service app: Vietnam Social Security Declaration

Online social insurance with social insurance declaration software was applied in mid-2015. This is a convenient method to help businesses, individuals and organizations do not need to go directly to a specific address. regulations to declare and file insurance claims that can be done through the Internet.

Using online insurance declaration software has many advantages over the traditional way of declaring social insurance. Therefore, this form has been and is being studied, responded and registered by many businesses.

Some benefits of online social insurance declaration:

+ Convenient document declaration in accordance with the form

+ Submit application easily, avoid troubles and negatives

+ Closer and more convenient document management

+ Social insurance declaration software supports online social insurance transaction procedures 24/24

Vietnam Social Security Declaration and Social Insurance for Foreigners