Since 2022, foreign employees with work permits are compulsory participants in Vietnam's social insurance scheme. Here's the rate breakdown and what you receive in return.
Since January 2022, foreign employees holding work permits in Vietnam have been compulsory participants in the social insurance scheme under Decree 143/2018/ND-CP. This catches many newly arrived expats off guard.
Contribution Rates
The combined employer and employee contribution is significant: employers contribute 17.5% of the employee's salary (capped at 20x the minimum wage), and employees contribute 8%. The cap means that for salaries above approximately VND 36 million/month, contributions plateau.
What You're Covered For
Foreign participants are covered for: sickness benefits (75% of salary for up to 30 days/year), maternity leave (100% of salary for 6 months for the primary carer), occupational accident insurance, and a retirement pension for those who have contributed for 20+ years.
Critically, a lump-sum payout is available when the foreign employee leaves Vietnam — equivalent to 1.5 months' pension base salary per year of contribution. Most expats access this benefit on departure rather than claiming a retirement pension.
Health Insurance
Separate from social insurance, health insurance contributions of 4.5% (employer: 3%, employee: 1.5%) provide access to public hospital care. In practice, most expats use private international health insurance and the compulsory scheme acts as a secondary backstop.
