The level of compulsory social insurance payment for foreign workers according to the new regulations is a matter of great concern to everyone. In the following article, Law Office Tran Duc Hung and Associates would like to send to our readers and customers the regulations on the compulsory social insurance payment rate from December 1, 2018 and from January 1, 2022 for people foreign workers working in Vietnam.
- SUBJECTS PAYING social insurance
Foreign workers working in enterprises include the following subjects:
Foreigners working in Vietnam who have a work permit or a practice certificate or a practice license issued by a competent Vietnamese agency and have an indefinite term labor contract, a definite labor contract determine a term of full 1 year or more for employers in Vietnam.
However, the above employees are not subject to compulsory social insurance participation in one of the following cases:
- 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 on foreign workers working in Vietnam, including: “Foreign workers who move within an enterprise are managers, executives, experts and technical workers of an established foreign enterprise. established a commercial presence in the Vietnamese territory, temporarily moved internally within the enterprise to a commercial presence in the Vietnamese territory, and had been employed by a foreign enterprise for at least 12 months before.”
- Employees who have reached full retirement age (men are full 60 years old, women are full 55 years old)
If the employee enters into many labor contracts with different employers and is subject to compulsory social insurance payment, the employee only pays social insurance for the first contract; The employer must pay to the labor accident and occupational disease insurance fund according to each signed labor contract.
- SI PAYMENT LEVEL
- From December 1, 2018
The employer shall make monthly contributions to the employee’s monthly salary fund on which social insurance premiums are based, including:
- 3% to the sickness and maternity fund;
- 0.5% to the labor accident and occupational disease insurance fund.
- From January 1, 2022
Employers pay monthly:
- 3% to the sickness and maternity fund;
- 0.5% to the labor accident and occupational disease insurance fund;
- 14% go to retirement and survivorship funds.
Employees pay monthly: 8% of the monthly salary to the retirement and survivorship fund.
- MONTHLY SALARY
The monthly salary on which social insurance premiums are based is the salary, salary allowance and other additional payments:
- Salary level, write the salary calculated according to the time of the job or title according to the salary scale, the salary table developed by the employer in accordance with the provisions of the labor law as agreed by the two parties. For employees who receive salary by product or package salary, write the salary calculated by time to determine the product unit price or package salary.
- Wage allowance, write down the salary allowances that the two parties have agreed, specifically:
Salary allowances to compensate for factors of working conditions, nature of work complexity, living conditions, level of attracting workers whose salary agreed in the labor contract has not been taken into account or is incompletely calculated such as allowances for positions and titles; responsibility allowance; heavy, toxic and dangerous allowances; seniority allowances; regional allowances; mobile allowance; attraction allowance and allowances of a similar nature. - The additional amounts determine the specific amount along with the salary agreed in the labor contract and paid regularly in each pay period.
The monthly salary on which the compulsory social insurance premium is based does not include other regimes and benefits, such as bonuses, which are the amounts that the employer rewards employees based on the annual production and business results. and the level of work completion of employees, initiative bonuses; Mid-shift meal; allowances for petrol, phone, transportation, housing, child care, and child rearing; support when employees have relatives died, employees have relatives getting married, employees’ birthdays, allowances for employees in difficult circumstances when suffering from occupational accidents, occupational diseases and other allowances and allowances shall be recorded in a separate item in the labor contract.
For support and advice on issues of Labor and Social Security in the best way, please contact us with the following information:
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