Social insurance overview
Mandatory minimum contributions are required of both employer and employee. There are three types of mandatory social security in Vietnam and all domestic and foreign companies are required to pay:
- Social insurance for Vietnamese and foreign employees under labor contracts with a definite term of over one month or labor contracts with indefinite terms.
- Health insurance for Vietnamese and foreign employees under labor contracts with a definite term of over three months or labor contracts with indefinite terms.
- Unemployment insurance for Vietnamese employees under labor contracts with a definite term of over three months or labor contracts with indefinite terms.
Under the revised 2024 Social Insurance Law (Law 41/2024/QH15), effective from July 1, 2025, the scope of compulsory social insurance (SI) coverage has been expanded. Employers must register and pay monthly SI contributions on behalf of their employees through the provincial Social Insurance Authority. The new law also broadens coverage to include certain part-time employees and specific managerial or representative roles.
Social insurance rates
|
Category |
Applicable employees |
Employer contribution |
Employee contribution |
Total rate |
Funds covered |
|
Standard salaried employees |
Vietnamese and foreign employees with labor contracts ≥ 1 month |
17.5 % |
8 % |
25.5 % |
|
|
Foreign employees |
Foreign employees with labor contracts ≥ 12 months, regardless of work-permit status (work permit, exemption, or other authorization) |
Included in rates above (17.5 % employer + 8 % employee) |
Included in rates above |
25.5 % |
Same as Vietnamese employees |
|
Non-salaried positions |
Enterprise managers, controllers, or representatives of state/enterprise capital who do not receive regular salaries |
25 % total— 3 % to sickness and maternity fund— 22 % to retirement and death fund |
Not applicable |
25 % (employer only) |
|
How is social insurance calculated?
The contributions are determined based on employees’ monthly salary or wage. While payable amounts differ depending on compensation, a new “reference level” introduced under the 2024 Law now replaces the “base salary” for determining contribution ceilings.
The salary used for SI contribution must be at least equal to the regional minimum wage plus 7 percent for trained positions, and may not exceed 20 times the “reference level” prescribed by the government.
The “reference level” (Article 7 of the 2024 Law) is a government-determined amount used to calculate social insurance payments and benefits, adjusted periodically based on the consumer price index and economic growth.
SHUI and trade union fee contributions
|
Item |
Until June 30, 2024 |
From July 1, 2024 |
Note |
|
Statutory pay rate |
VND 1,800,000 |
VND 2,340,000 |
All Vietnam |
|
Maximum SI/HI salary |
VND 36,000,000 |
Adjusted per “reference level” (effective July 2025) |
20 × reference level |
From July 1, 2025, the government will issue new guidance to align all ceilings and thresholds with the “reference level” system introduced by the 2024 Social Insurance Law.
Foreign employee eligibility and criteria
Under Article 2 of the 2024 Social Insurance Law, foreign workers are subject to mandatory SI if they meet the following criteria:
- Have a labor contract of at least 12 months in Vietnam, regardless of the type of work authorization held;
- The statutory retirement age at the time of contract signing (currently being raised gradually to 62 for men and 60 for women);
- Not an internal transferee within the enterprise;
- Not already at or beyond the retirement age; and
- Not covered by an international treaty that provides otherwise.
Exemptions for foreign employees include:
- Internal company transferees as defined by Vietnamese law;
- Foreign employees who have reached retirement age at the time of contract signing;
- Cases where international treaties to which Vietnam is a signatory provide different provisions.
One-off social insurance payment for foreign workers
Once a foreign worker’s employment in Vietnam expires, they may claim a one-off payment from the social insurance agency under these circumstances:
- Reach retirement age but have not contributed in social insurance for the full 20 years;
- Suffer from a fatal disease such as cancer, polio, or HIV;
- Are eligible for pension but reside permanently outside Vietnam;
- Their labor contract terminates, or their permit (of any type) expires without renewal.
The request should be made within 30 days before the contract or permit expiry, and the social insurance authority must process the payment within 10 working days of receipt.
Payment and administrative provisions
Under Clause 4, Article 28 of the new law, the timeframe for issuing a compulsory social insurance book has been shortened to five working days from receipt of a complete application (down from 20 days). Employers are no longer required to post SI payment information every six months, simplifying administrative processes.
Late payments or evasion are now more precisely defined. Employers who delay payments must pay the total unpaid amount plus interest at a rate of 0.03 percent per day of delay. Separate provisions address evasion cases and authorize direct deduction from employer accounts when necessary.
What does social insurance cover?
Social insurance covers employee benefits, including:
- Sick leave
- Maternity leave
- Allowances for work-related accidents and occupational diseases
- Pension allowance
- Mortality allowance
Health insurance entitles employees to medical examination and inpatient/outpatient treatments at authorized facilities.
The 2024 Law also strengthens social pension rights for elderly individuals without sufficient contribution years, partly subsidized by the State.
