Starting from July 1, 2025, the 2024 Law on Social Insurance will take effect, introducing the following new provisions applicable to foreign nationals legally working in Vietnam:
- Social Insurance Regulations for Foreigners
The social insurance (SI) regime for foreign workers in Vietnam is stipulated in the 2024 Law on Social Insurance and Decree No. 158/2025/ND-CP, effective from July 1, 2025.
Details regarding the participants, contribution rates, and procedures for foreigners to participate in social insurance under the 2024 Law are as follows:
1.1 Conditions for Mandatory Social Insurance Contributions for Foreigners
Under the previous regulations, foreign nationals working in Vietnam who possessed a work permit, practicing certificate, or professional license issued by a competent authority in Vietnam were required to participate in the mandatory social insurance scheme.
According to Clause 2, Article 2 of the 2024 Law on Social Insurance, foreign workers in Vietnam are subject to mandatory social insurance if they sign a labor contract with a fixed term of at least 12 months with an employer in Vietnam.
1.2 Cases in Which Foreign Workers Are Exempt from Mandatory Social Insurance
Even if foreign workers meet the above criteria, they are exempt from mandatory social insurance contributions in the following cases:
- Intra-corporate transferees as defined in Clause 1, Article 3 of Decree No. 11/2016/ND-CP dated February 3, 2016, which includes:
- Foreign workers who are managers, executives, specialists, or technical employees transferred within the same enterprise that has established a commercial presence in Vietnam.
- Workers who have been employed by the overseas company for at least 12 months before being temporarily transferred to its commercial presence in Vietnam.
- Retirement Age: Workers who have reached the retirement age as prescribed in Clause 2, Article 169 of the 2019 Labor Code.
- International Treaties: Where international treaties to which the Socialist Republic of Vietnam is a member contain different provisions.
- Social Insurance Contribution Rates
Contribution Rates for Foreign Employees
Foreign workers in Vietnam are required to contribute to the following mandatory insurance schemes:
- 8% of their salary (used as the basis for calculating social insurance) to the retirement and survivorship fund (per Article 9 of Decree No. 158/2025/ND-CP and Point a, Clause 1, Article 33 of the 2024 Law on Social Insurance).
- 1.5% of their salary to the health insurance fund (per Article 18 of Decision No. 595/QD-BHXH in 2017).
- Foreign workers are not subject to unemployment insurance contributions.
The salary used for calculating social insurance contributions includes base salary, allowances, and other additional payments (excluding bonuses and welfare benefits per the Labor Code). The maximum base is 20 times the statutory base salary, and the minimum is based on the reference level set by the Government.
Thus, foreign workers must contribute a total of 9.5% of their salary monthly towards social insurance (SI), health insurance (HI), and occupational accident and disease insurance (OADI) as prescribed.
Contribution Rates for Employers
Employers are required to contribute to the following funds on behalf of foreign workers:
- 17% of the employee’s salary to the social insurance fund (per Clause 1, Article 34 of the 2024 Law), including:
- 14% to the retirement and survivorship fund.
- 3% to the sickness and maternity fund.
- 3% to the health insurance fund (per Article 18 of Decision No. 595/QD-BHXH in 2017).
- 0.5% or 0.3% for occupational accident and disease insurance depending on the applicable case (per Article 4 of Decree No. 58/2020/ND-CP).
Contributions |
Employer |
Employee (Foreigner) |
Total |
Retirement & Survivorship |
14% |
8% |
Sickness & Maternity |
3% |
– |
Unemployment Insurance |
– |
– |
Health Insurance |
3% |
1.5% |
OADI | Total |
0.5% | 20.5% |
– | 9.5% |
| |
30% |
In conclusion, the total mandatory social insurance contribution rate for foreign workers in Vietnam is 30% of the monthly salary used for calculating SI, of which 9.5% is contributed by the employee and 20.5% by the employer.
Overall, the new Social Insurance Law does not significantly change the rights and obligations of foreign workers. It primarily clarifies the conditions for participation, while the contribution rates remain unchanged compared to the previous law.
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