What kind of insurance does a foreign worker have to join?

When joining the labor force in Vietnam, there will be the following insurance:

+ Firstly, on social insurance:

Pursuant to the provisions of Clause 2, Article 2 of the Law on Social Insurance 2014, the subjects subject to social insurance shall be prescribed as follows:

” 2.  Employees being foreign citizens who work in Vietnam and who have work permits or practicing certificates or practicing certificates granted by competent Vietnamese agencies may participate in social insurance. Compulsory in accordance with the regulations of the Government. “

Accordingly, the new Social Insurance Law 2014 stipulates that foreign employees are obliged to participate in compulsory social insurance. However, pursuant to Article 124 of the Law on Social Insurance, 2014, on implementation effect:

” 1. This Law takes effect as from January 1, 2016, except for the provisions at Point b, Clause 1 and Clause 2, Article 2 of this Law, and takes effect as from January 1, 2018.”

As a result, foreign workers are not required to participate in compulsory social insurance, which is applied from 1 January 2018.

Second, on unemployment insurance:

Pursuant to Article 43 of the Employment Act 2013, the persons who are required to participate in unemployment insurance are employees who work under labor contracts or work contracts. On the other hand, workers in this Act shall be construed in accordance with Clause 1, Article 3 as follows: ”  Workers are citizens of Vietnam from 15 years of age tr in up, capable of working and in need of work ” 

Thus, the objects of foreign workers working in Vietnam are not subject to unemployment insurance.

+ Third, on health insurance:

Pursuant to Clause 2, Article 1 of the Law on Health Insurance 2008, the scope of application of the Law on Health Insurance 2008 is as follows: ” This Law applies to domestic and foreign organizations and individuals Foreigners in Vietnam are involved in health insurance. ” 

In addition, Point a, Clause 1, Article 12 of the Law on Health Insurance amended and supplemented in 2014 stipulates:

” 1. The group shall be closed by the employee and the employer, including:

a / Laborers working under labor contracts with indefinite terms or labor contracts of a term of full 3 months or more; The employee is the manager of the enterprise and receives salary; Officials, public servants and employees (hereinafter referred collectively to as laborers) .

Accordingly, the law on health insurance does not discriminate against workers who are Vietnamese citizens or workers who are foreign nationals. That is, foreign workers are also subject to the current Law on Health Insurance and have to participate in health insurance if they work under indefinite term labor contracts or contracts with a term of three month or more.

Thus, it can be stated that currently foreign workers working in Vietnam only have to participate in health insurance.

 

If you are looking for legal advice, please feel free to contact Kim Huc for more information!

KIM HUC CONSULT AND TRADING COMPANY LIMITED

Add: C36-TT8, Van Quan, Dist Ha Dong, Ha Noi, Viet Nam

Tel: 024.3225.2641                       Fax: 024.3225.2640

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