Summary
Vietnam does not have a comprehensive social security system. Rather, it has a programme with different coverage arrangements for ‘Social Insurance’ (retirement, occupational accident sickness and maternity), Health Insurance (HI) and Unemployment Insurance. It is aimed primarily at providing protection for the lowest earners in Vietnam.
Details
Contributions
Local foreign national employees are required to participate in SI and the HI scheme. The Unemployment insurance scheme only applies to Vietnamese nationals. The SI scheme is not applicable to foreign employees who work in Vietnam on assignment to a Vietnamese subsidiary.
SI contribution rates are 17.5% employer, 8% employee (on earnings up to $1,535 per month). HI contribution rates are 3% for the employer and 1.5% for the employee (again on earnings up to $1,535 per month).
Treaties
Vietnam has only one bilateral social security agreement – with South Korea. More broadly, given the general exemption from contributions for expatriates working in Vietnam, the lack of bilateral agreements does not lead to double contributions.
Exemptions
Given the broad exemption from social security for expatriates and the low contribution rates for local hires, exemptions are not applicable.
Administration
Given that expatriate employees are generally exempt from Vietnamese social security, there are no social security specific administrative burdens on non-Vietnamese employers.
Benefits
Foreigners working in Vietnam on overseas contracts will not typically be entitled to any state benefits, although the healthcare system can be accessed on a paid basis.
Other
Locally employed foreign nationals can, when their work permit expires and/or contract is terminated, claim a refund of their contributions.
Social security insights are intended to provide quick and straightforward insights into social security regimes. Always seek professional advice based on actual circumstances before acting.
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