In the context of increasing international integration, the number of foreign employees working in Vietnam has steadily grown. Along with this trend, issues related to labor rights and obligations, particularly participation in compulsory social insurance (SI), have become a matter of significant concern for both employees and employers. Understanding the regulations on social insurance contributions for foreign workers is essential to ensure compliance with Vietnamese law, protect employee benefits, and minimize legal risks for enterprises.
1. Are Foreign Employees in Vietnam Required to Participate in Social Insurance?
According to Clause 2, Article 2 of the Law on Social Insurance 2024, foreign nationals working in Vietnam are subject to compulsory social insurance if they are employed under a definite-term labor contract of 12 months or more with an employer in Vietnam, except for the following cases:
- Employees transferred within an enterprise under regulations on foreign workers in Vietnam;
- Employees who, at the time of signing the labor contract, have reached the statutory retirement age as stipulated in Clause 2, Article 169 of the Labor Code 2019;
- Cases otherwise provided for under international treaties to which the Socialist Republic of Vietnam is a member.
Accordingly, unless falling under the above exemptions, foreign workers in Vietnam with definite-term labor contracts of 12 months or more are mandated to participate in compulsory social insurance.
2. Procedure for Registering Social Insurance for Foreign Employees
Pursuant to Clause 1, Article 27 of the Law on Social Insurance 2024, the registration dossier for compulsory social insurance includes:
- The employer’s declaration for participation in social insurance, accompanied by a list of employees subject to participation;
- The employee’s declaration for participation in social insurance.
Submission deadline: Within 30 days from the date of signing the labor contract, employment contract, or recruitment decision, the employer must submit the dossier to the competent social insurance authority.
Processing time: Within 05 working days from receipt of a complete dossier, the social insurance authority must issue a social insurance book. In cases where issuance is denied, a written explanation stating the reason must be provided (Clause 4, Article 28 of the Law on Social Insurance 2024).
3. Social Insurance Contribution Rates for Foreign Employees
3.1. Contribution by Foreign Employees
Foreign employees working in Vietnam are required to make contributions at the following rates:
- 8% of the monthly salary to the retirement and survivorship fund (pursuant to Article 9 of Decree 158/2025/ND-CP and Point a, Clause 1, Article 33 of the Law on Social Insurance 2024);
- 1.5% of the monthly salary to the health insurance fund (pursuant to Article 18 of Decision 595/QĐ-BHXH/2017).
The monthly salary used as the contribution base includes salary, allowances, and other additional payments, excluding welfare benefits and bonuses under the Labor Code. The maximum contribution base is capped at 20 times the statutory base salary, while the minimum is set in accordance with Government regulations.
Total contribution by employees: 9.5% of the monthly salary used as the contribution base (applicable from July 1, 2025).
3.2. Contribution by Employers of Foreign Employees
Employers are obligated to contribute to compulsory social insurance for foreign employees as follows:
- 17% of the monthly salary to the social insurance fund, including: 14% to the retirement and survivorship fund; 3% to the sickness and maternity fund
- 3% of the monthly salary to the health insurance fund (pursuant to Article 18 of Decision 595/QĐ-BHXH/2017).
- 0.5% (or 0.3% in eligible cases) to the occupational accident and disease insurance fund, under Article 4 of Decree 58/2020/ND-CP (as amended by Article 43 of Decree 158/2025/ND-CP).
Total contribution by employers: 20.5% of the monthly salary used as the contribution base.
Conclusion
From July 1, 2025, the total compulsory social insurance contribution rate applicable to foreign employees in Vietnam is 30% of the monthly salary used as the contribution base, in which:
- Employees contribute 9.5%, and
- Employers contribute 20.5%.
This regulation ensures that foreign employees in Vietnam are entitled to the same social insurance benefits as domestic workers, while also clarifying the legal obligations of employers.
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