Vietnam social insurance - INNO Accounting

Vietnam regulations on compulsory insurance

Main content

Subjects must participate in compulsory insurance
Salary based for compulsory insurance
Compulsory insurance rate

Subjects must participate in compulsory insurance

Employees who are Vietnamese are subject to compulsory social insurance, including:

Employees working under a fixed-term contract, an indefinite contract, a seasonal contract, or for some jobs with a term of 3 months to less than 12 months (including contracts signed between employers and representatives of employees under the age of 15).
Persons with labour contracts from 1 month to less than 3 months.
Officials, public servants.
Defence workers, police officers, and workers in cipher organizations.
Professional officers and soldiers; officers, professional non-commissioned officers, officers and technical non-commissioned officers of the People’s Public Security; people doing cipher work receive salaries like military personnel;
Non-commissioned officers and soldiers of the People’s Army; non-commissioned officers and soldiers of the People’s Public Security who serve definite-term; Military, police, and cipher students who are studying are entitled to living expenses;
Persons who go to work abroad under the contract specified in the Law on Vietnam
The enterprise manager, the executive manager of the cooperative receiving salary
Part-time workers in communes, wards, and townships.

Employees who are foreigners working in Vietnam are subject to compulsory insurance contributions when:

Have a work permit or practice certificate issued by competent agencies and organizations in Vietnam.
Having a definite or indefinite labour contract of a full 1 year or more with the employer.

Salary based for compulsory insurance

Minimum salary based pay compulsory insurance

The minimum salary based is the regional minimum salary at the time of payment.

Current regional minimum wage

Unit: VND/month

Region	Regional minimum salary
I	4,680,000
II	4,160,000
III	3,640,000
IV	3,250,000

Note:
• For employees with jobs or titles with vocational training, the salary based for complulsory insurance contributions must be at least 7% higher than the regional minimum wage.
• For heavy, hazardous, and dangerous work, at least 5% higher than the regional minimum wage.
• For particularly arduous, hazardous, and dangerous jobs, it must be at least 7% higher.

See more about the allocation of regions – here

Maximum salary based pay compulsory insurance

The maximum monthly salary based for Social Insurance (Social Insurance), Health Insurance (HI) is capped at 20 times the common minimum salary.
The maximum monthly salary based for Unemployment Insurance (UI) is capped at 20 months of the regional minimum salary.

Specifically:

Unit: VND/month

Region	SI, HI	UI
I	36.000.000	93.600.000
II		83.200.000
III		72.800.000
IV		65.000.000

Compulsory insurance rate

Compulsory insurance rates applicable for Vietnamese

Employer			Employee
Social Insurance	Health Insurance	Unemployment Insurance	Social Insurance	Health Insurance	Unemployment Insurance
17.5%	3%	1%	8%	1.5%	1%
21.5%			10.5%
32%

Compulsory insurance rates applicable for Foreigner

Employer			Employee
Social Insurance	Health Insurance	Unemployment Insurance	Social Insurance	Health Insurance	Unemployment Insurance
17.5%	3%	–	8%	1.5%	–
20.5%			9.5%
30%