From January 1st, 2022, foreign employees working in Vietnam must participate in compulsory insurance regimes including sickness; maternity; occupational accident and occupational disease insurance; retirement and death under Decree No. 143/2018/ND-CP and Notice 4447/TB-BHXH. COMPULSORY SOCIAL INSURANCE FOR FOREIGNERS
Social insurance is one of the regimes to ensure the rights of employees in the process of labor relations, currently the subjects required to participate is expanded and foreigners are no exception. Many foreign employees will leave Vietnam.after the end of the labor contract/ working term, will they be able to withdraw and entitled to the one-time social. insurance regime when they return their country? If so, how the level of entitlement, process and procedures will be regulated is their concerns before this regulation..COMPULSORY SOCIAL INSURANCE FOR FOREIGNERS
Understanding the concerns of Clients, Law Plus with many years of experience in the field .of legal consultancy by leading domestic Lawyers and Consultants, so we would like to send you important points that you are interested in.
Table of Contents/Mục lục
1. Foreigners are required to participate in social insurance:
Not all employees who are foreigners must pay compulsory social insurance, but in accordance with the current law, only those who fall under the following cases must participate: COMPULSORY SOCIAL INSURANCE FOR FOREIGNERS
- Obtain work permits, practicing certificates, practicing licenses issued in Vietnam,
- And obtain indefinite-term employment contracts or employment contracts valid for at least one year with employers in Vietnam.
2. Foreigners who are exempted from social insurance:
- Foreign workers internally reassigned in the company are the managers, chief executive officers, experts and technicians of a foreign enterprise. which has established a commercial presence.in Vietnam, are temporarily reassigned within the same enterprise to its commercial presence.in Vietnam and have been employed by the foreign enterprise for at least 12 months.
- Has reached retirement age as prescribed:
- The Goverment adjusts the retirement age of workers under normal working .conditions according to the roadmap until the full age of 62 for male workers in 2028 and full 60 years for female workers in 2035.
- From 2021, the retirement age of employees under normal working conditions is full 60.years and 03 months for male workers and full 55 years and 04 months for female workers; after that, each year increases by 03 months for male workers and 04 months for female workers.COMPULSORY SOCIAL INSURANCE FOR FOREIGNERS
3. Social insurance contribution rate
* From 01/01/2022 to 30/6/2022:
* From July 1st, 2022:
Especially for enterprises operating in occupations at high risk of occupational accident-disease, if they are eligible, have written requests and are.approved by the Ministry of Labor and Social Affairs, they shall be paid into the occupational accident-disease fund with a lower rate of 0.3%.
4. Cases of receiving social insurance
Employees who are foreigners working in Vietnam, participating in compulsory social .insurance payment will be entitled to pensions (if eligible) or one-time social insurance upon request (if required by law) or will reserve such payment period.
Specifically:COMPULSORY SOCIAL INSURANCE FOR FOREIGNERS
I. Receiving retirement pension: if employees have paid social insurance for at least 20 years, they fall under one of the following cases:
(1) They have reached the retirement age specified in Clause 2 Article 169 of the Labor Code as analyzed above
(2) The retirement ages of employees who suffer from work capacity reduction; doing laborious, toxic or dangerous works; working in. highly disadvantaged areas may be younger by up to 05 years than the retirement ages specified in Clause 2 Article 169, unless otherwise prescribed by law, at the same time:
- Having at least 15 years’ working the laborious, toxic or dangerous works or highly laborious, toxic or dangerous works on the lists of the Ministry of Labor, War Invalids and Social Affairs;
- Or having at least 15 years’ working in highly disadvantaged areas, including the period they work in areas with the region factor of at least 0,7 before January 01, 2021;COMPULSORY SOCIAL INSURANCE FOR FOREIGNERS
(3) Their age is younger than the retirement age specified in Clause .2 Article 169 of the Labor Code by up to 10 years and they have worked in coal mines for at least 15 years;
(4) Or they contracted HIV due to an occupation accident during performance of their assigned duty.
II. Employees can require to receive one-time social insurance according to Circular No. 56/2017/TT-BYT on the implementation of the. Law on Social Insurance and Article 77 of the current Law on Social Insurance if they fall under the following cases:COMPULSORY SOCIAL INSURANCE FOR FOREIGNERS
Firstly, employees who are of sufficient age to receive retirement pensions but less than 20 years of social insurance payment;
Secondly, employees who are suffering from one of the life-threatening diseases such as cancer, polio, cirrhosis of the neck, leprosy, severe tuberculosis, HIV infection have moved to.the AIDS stage and are not self-controlled or unable to carry. out their own activities of walking, dressing, personal hygiene and other things that serve the needs of daily personal activities that require people to monitor, help, take full care of. In addition, diseases and diseases in addition to the above diseases have a decrease in. working capacity or disability level of 81% or more and do not self-control or do not perform activities on their own, clothing, personal hygiene and other things that serve the needs of.daily personal activities that require a monitor to help, take full care.
Thirdly, the employee is eligible for receiving retirement pension but does not continue to reside in Vietnam;
Fourthly, when the employee terminates the labor contract, practicing certificates, practicing licenses expire without being renewed.
III. The employee will choose to reserve the.insurance payment period if it does not fall under 01 of the above 02 cases. Thus, when employees do not want to continue to participate in social insurance anymore. but still want to receive retirement pensions, they can reserve the time to.participate in social insurance and wait until they reach the prescribed retirement age.COMPULSORY SOCIAL INSURANCE FOR FOREIGNERS
5. Procedures for withdrawing one-time social insurance
a. Dossier for withdrawing one-time social insurance: specified in Article 6 of Decision No. 166/QD-BHXH
Quantity: 01 set
- For employees who are foreigners working in Vietnam receive one-time social insurance, dossier includes:
- Records of employers and employees: for example, business licenses; foreign passports; insurance book;…
- Other dossiers on request:
- Application form No. 14-HSB
- Cases of . life-threatening diseases such as cancer, polio, cirrhosis of the liver, leprosy, severe tuberculosis, HIV infection have moved to the AIDS stage: Copy/summary of medical records showing non-self-service status;
- If suffering from other diseases: replaced by. the Minutes of assessment of the decline of labor force of the Board of medical assessment shows the decline of labor force at least 81% and unable to serve itself.
- In case of payment of medical assessment fee: Invoices and documents for collection of expertise fees; list of the expertise contents of the establishment performing the medical assessment.
- For foreigners who .are receiving retirement pensions, monthly social insurance benefits allowances no. longer residing in Vietnam are entitled to one-time allowances: Application form 14-HSB.COMPULSORY SOCIAL INSURANCE FOR FOREIGNERS
b. Procedures
Place of application: The social insurance agency of the district where the employee is residing under the temporary residence or temporary residence card;
Application form: The employees can submit the application in one of the following forms:
- Through electronic transactions: Employees register to receive authentication codes and send .electronic documents to the Vietnam Social Insurance Portal or through I-VAN Organization (if they have registered to use I-VAN services); in case of not transferring paper dossiers to electronic format, send all paper dossiers to the social insurance .agency through the public-utility postal service;
- Through the public postal service;
- Or directly at the social insurance agency;COMPULSORY SOCIAL INSURANCE FOR FOREIGNERS
Time limit for settlement: Up to 05 working days from the date the social insurance agency. receives the full dossier as prescribed.
6. The beneficiary of a foreigner’s one-time social insurance premium shall be calculated as follows:
Clause 7, Article 9 of Decree No. 143/2018/ND-CP has provided guidance on the level of one-time. social insurance benefits as follows: The level of one-time social insurance benefits shall comply with the provisions of Point b Clause 2 Article 60 of the Law on Social Insurance. COMPULSORY SOCIAL INSURANCE FOR FOREIGNERS
Accordingly, the one-time social insurance premium of foreign employees is determined according to the following formula:
In it:
- The average salary paid for social insurance:
- Number of years of social insurance payment: This time is rounded as follows:
+ There are odd months from 01 to 06 months: Fully calculated 1/2 year.
+ There are odd months from 07 to 11 months: Fully calculated 01 year.COMPULSORY SOCIAL INSURANCE FOR FOREIGNERS
The above is Law Plus’s .analysis of regulations related to the social insurance regime of foreign employees. With the desire to help enterprises, clients better understand the provisions of the law to apply to the practical process. To ensure that unfortunate conflict issues do.not occur during the process of. foreigners working at the enterprise and with many years of experience in the same field, please contact us immediately at hotline +84 2862 779 399, +84 3939 30 522 or email info@lawplus.vn to get the quickest, most effective, reputable, quality and most cost-effective consultancy.
