New social insurance contribution for foreign enterprises
By new policies for attracting talented foreigners, Vietnam guarantees the regulation for foreign workers living in Vietnam in general and the regulation when participating in social insurance in particular. In any industrial park such as Binh Duong industrial park and Long An industrial park, almost enterprises are aware of executing this scheme. The following article will give you more information about the 2019 social insurance premium for foreigners.
Main traits when participating in Vietnamese social insurance
Foreign nationals who must pay the social insurance premium:
According to Clause 2 of Decree 143/2018 / ND - CP, foreign workers belong to the candidates of getting mandatory social insurance:
-Vietnam work permit, Vietnam certificate to practice.
-Vietnam license to practice issued by a competent authority.
-Labor agreements which have an unlimited-term or set a time-limit for 1 year and above for employers in Vietnam.
2019 social insurance contribution for foreign enterprises
According to the new law, employers are required to pay social insurance for foreign workers from December 1, 2018, and maintain it into 2019. It is a mandatory requirement to ensure security benefits for employees to work in the peace of mind. In Long An and Binh Duong industrial parks, the application was initially new to the surroundings. However, after that, this regulation became more and more responsive and be applied. According to the decree, the social insurance contribution for foreign workers is taking place from time to time. In particular:
|
Employers |
Employers |
Employers |
Employers |
|
|
Time payment |
Sickness, maternity |
TNLĐ, BNN |
Retiring, death |
Retiring, death |
|
From December 12, 2018 |
3% |
0,5% |
0 |
0 |
|
From January 01, 2022 |
3% |
0,5% |
14% |
8% |
(According to Clause 12 and Clause 13 of Decree 143/2018/NĐ-CP)
Therefore, starting from December 1, 2018, enterprises owning foreign workers who are required to participate in insurance must take part in Vietnamese social insurance. The initial rate will be 3%. Employees do not have to pay anything to the government or enterprises. From January 1, 2022, the social insurance premium will increase. Accordingly, the contribution of the employer is 17.5%. Foreigners must make an 8% payment by themselves. This deduction level is regarded as proper for the criteria set out by the departments.
The regulation of participating health insurance for foreign workers
Candidates for health insurance
Clause 17 of Decision No. 595 / QD-BHXH has promulgated the regulation of health insurance payment. Foreigners are required to participate in health insurance if they belong to the following situations:
-Foreigners work for an unlimited time or have a labor agreement with a time-limit for 3 months and above.
-Enterprises' managers, cooperatives' operators are getting paid.
Health insurance premium
Health insurance premium for foreign workers is assigned in Clause 18 of Decision No. 595 / QD-BHXH. The total rate is 4.5% of the monthly salary. In particular:
-Enterprises/employers: 3%
-Foreigners/employees: 1.5%
Depending on specific circumstances, foreign workers will get the appropriate regulations that bring them a lot of benefits and opportunities when deciding to live in Vietnam. Hopefully, the above information has helped enterprises have a clearer understanding of the regulations as well as the social insurance contributions in 2019.
