Draft MoLISA decree outlines payments by foreign employees and their employers and may come into effect on January 1, 2018.
Foreigners working in Vietnam may be required to pay social insurance under a recent draft decree from the Ministry of Labor, Invalids and Social Affairs (MoLISA).
According to the draft, employees who have contracts for one month or more will pay a monthly insurance premium of 8 per cent of their income for their future retirement and death funds. Employers are required to contribute 18 percent of an employee’s monthly salary, including 3 per cent to a sickness and maternity fund, 14 per cent to a retirement and death fund, and 1 per cent to an occupational diseases and accidents fund.
A foreign employee whose contract has expired and not been renewed or who is eligible for pensions or monthly allowances but no longer resides in Vietnam can still receive a one-off payment from the social insurance fund if requested.
Under Vietnamese law, employees are allowed to manage their social insurance book during the period paying social insurance premiums, to monitor payments and enjoyment social insurance. They are to also be provided with information from their employer on the annual payment of social insurance premiums once every six months, and have their annual social insurance premium payment certified by the social insurance agency annually. This provide important grounds for employees to compare and supervise the responsibility of their employers in paying social insurance premiums.
The draft on compulsory social insurance states that the basic package would cover sickness, maternity, occupational diseases and accidents, retirement, and death, which is similar to that for Vietnamese workers. If approved, the decree will come into effect from January 1, 2018.