- Is Social Insurance Mandatory For Foreigners in Vietnam?
- Understanding The Social Insurance Contribution Base
- What Are the Social Insurance Contribution Rates For Foreign Employees?
- How Are Social Insurance Contributions Calculated?
- Can Foreign Employees Receive A One-off Social Insurance Payment?
- What Are the Risks of Non-compliance?
- Simplify Expatriate Workforce Compliance With Manpower Vietnam
As your organization expands its foreign workforce in Vietnam, are you confident every expatriate employee has been enrolled in the correct statutory insurance scheme? With different rules governing eligibility, exemptions, and contribution requirements, social insurance obligations can quickly become a payroll compliance challenge. This guide outlines the key requirements for social insurance for foreigners in Vietnam, helping employers manage risk while ensuring compliance with Vietnam's latest regulations.
- Reduce compliance and payroll risks
- Avoid penalties and contribution arrears
- Support expatriate workforce management
- Ensure accurate statutory benefit administration
Is Social Insurance Mandatory For Foreigners in Vietnam?
In many cases, yes.
Under Article 2 of the 2024 Law on Social Insurance, foreign employees working in Vietnam are generally subject to compulsory social insurance if they work under a fixed-term employment contract of at least 12 months with an employer in Vietnam.
However, certain exemptions apply, including:
- Internal corporate transferees (ICTs) under Vietnam's regulations on foreign employees;
- Employees who have reached the statutory retirement age at the time the employment contract is signed; and
- Employees covered by an international treaty to which Vietnam is a member, where the treaty provides otherwise.
Understanding The Social Insurance Contribution Base
The amount payable each month depends on the employee's social insurance contribution salary, which serves as the basis for calculating mandatory contributions. Vietnam's regulations establish both minimum and maximum thresholds that employers must observe when determining this amount.
Minimum contribution threshold
According to Article 31 of the 2024 Law on Social Insurance, the salary used as the basis for compulsory social insurance contributions must not be lower than the reference level applicable at the time of contribution, which is currently VND 2.53 million per month (effective from 1 July 2026)
Maximum contribution ceiling
The same provision sets the maximum contribution salary at 20 times the applicable reference level, resulting in a maximum contribution salary of VND 50.6 million per month.
This means that if an employee earns more than VND 50.6 million per month, only the amount up to the ceiling is used when calculating social insurance contributions. Any income exceeding this threshold is not subject to compulsory social insurance contributions.
What Are the Social Insurance Contribution Rates For Foreign Employees?
For foreign employees covered by Vietnam's compulsory insurance regime, contributions are allocated across several statutory funds, including the retirement and survivorship fund, sickness and maternity fund, health insurance, and occupational accident and disease insurance.
| SI | UI | HI | WIO | Total | |
|---|---|---|---|---|---|
| Employee | 8% | - | 1.5% | - | 9.5% |
| Employer | 17% | - | 3% | 0.5% | 20.5% |
| Total | 25% | - | 4.5% | 0.5% | 30% |
*Foreign employees are generally not subject to compulsory unemployment insurance contributions and are therefore not eligible for unemployment insurance benefits in Vietnam.
Notes:
SI - Social Insurance
HI - Health Insurance
UI - Unemployment Insurance
WIO - Work Injury & Occupational Disease
How Are Social Insurance Contributions Calculated?
The mandatory social insurance contribution is calculated using the following formula:
For employees whose salary is determined by the employer, the contribution base includes:
- Salary according to the employee's job or position;
- Salary allowances; and
- Other additional amounts agreed in the employment contract that are paid regularly and consistently.
Example
Assume a foreign employee has a monthly social insurance contribution salary of VND 40,000,000.
Employee contribution
- Social insurance (Retirement and Survivorship Fund): 8% = VND 3,200,000
- Health insurance: 1.5% = VND 600,000
> Total employee contribution: VND 3,800,000
Employer contribution
- Social Insurance: 17% = VND 6,800,000
- Health insurance: 3% = VND 1,200,000
- Occupational Accident and Disease Insurance: 0.5% = VND 200,000
> Total employer contribution: VND 8,200,000
Can Foreign Employees Receive A One-off Social Insurance Payment?
In certain circumstances, foreign employees may be entitled to receive a one-off social insurance payment after they stop participating in Vietnam's compulsory social insurance system.
These include cases where the employee:
- Reaches retirement age but has accumulated fewer than 15 years of social insurance contributions;
- Has a serious illness such as cancer, polio, decompensated cirrhosis, severe tuberculosis or AIDS;
- Has a working capacity impairment of 81% or more or is classified as having an especially severe disability;
- Meets the conditions for a pension but no longer resides in Vietnam; or
- Has their employment contract terminated, or their work permit, practice certificate or professional licence expires and is not renewed.
LEARN MORE ABOUT ONE-OFF SOCIAL INSURANCE
What Are the Risks of Non-compliance?
Failing to comply with Vietnam's compulsory social insurance requirements can expose employers to significant financial and operational risks. Common issues include:
- Failing to register eligible employees.
- Underreporting contribution salaries.
- Making late payments.
- Providing incomplete information to authorities.
For example, based on the upcoming Decree No. 283/2026/ND-CP, which takes effect on 10 September 2026, employers that fail to comply with compulsory social insurance obligations may face administrative penalties, including fines for late payment, failure to register eligible employees, or evasion of compulsory social insurance contributions.
| Violation | Administrative penalty |
|---|---|
| Failing to register or fully register eligible employees for compulsory social insurance | VND 5,000,000-75,000,000, depending on the number of employees |
| Late payment of compulsory social insurance contributions | 12%-15% of overdue contributions (capped at VND 75,000,000) |
| Evading compulsory social insurance contributions | 18%-20% of evaded contributions, capped at VND 75,000,000 |
| Remedial measures for late payment or contribution evasion = Outstanding contributions* + 0.03% per day on the overdue or evaded amount | |
*Outstanding contributions - refers to compulsory social insurance amounts that an employer was required to pay but has not yet paid in full by the applicable deadline
For businesses employing foreign workers, maintaining accurate social insurance records is not simply a regulatory requirement. It is an important part of broader payroll compliance and workforce risk management.
Simplify Expatriate Workforce Compliance With Manpower Vietnam
Backed by nearly 20 years of experience in Vietnam, Manpower Vietnam delivers end-to-end workforce solutions that help businesses stay compliant while reducing administrative burden. From onboarding and payroll administration to statutory insurance management and HR compliance support, our specialists help employers manage their workforce with confidence.
Whether you are expanding your international workforce or managing day-to-day payroll operations, we help ensure compliance, minimize risk, and free your HR team to focus on higher-value business priorities.
