Navigating the regulatory framework of Social insurance Vietnam for foreigners is essential for both expatriates and corporate entities to ensure statutory compliance and safeguard entitlements. With the enactment of the new Law on Social Insurance 2024 (Law No. 41/2024/QH15), effective from July 1, 2025, the legislation provides specific stipulations defining the scope of mandatory participation, contribution rates, and the mechanism for lump-sum social insurance withdrawal.
This legal guide analyzes the requirements, current SIHIUI rates Vietnam, and the critical procedures for claiming benefits upon repatriation.
1. Statutory Scope of Application
Pursuant to Article 2 of the Law on Social Insurance 2024, foreign nationals working in Vietnam are subject to the mandatory social insurance regime if they satisfy the following concurrent criteria:
- Legal Documentation: The individual possesses a valid Work Permit, Practice Certificate, or Practice License issued by competent Vietnamese authorities.
- Contractual Status: The individual is employed under a labor contract with a fixed term of 12 months or more.
Statutory Exemptions
The law explicitly exempts specific categories of foreign workers from mandatory participation:
- Intra-Company Transferees: Employees who are internally transferred within an enterprise (moving from a parent company/subsidiary abroad to a commercial presence in Vietnam) are exempt.
- Retirement Age: Employees who have reached the statutory retirement age as prescribed by the Labor Code.
2. Current Social Insurance Contribution Rates (2025 Standards)
Contribution rates are calculated based on the employee’s monthly salary. In accordance with Articles 32, 33, and 34 of the Law on Social Insurance 2024, the financial obligations are allocated as follows:
Employee Contribution
Foreign employees are legally obligated to contribute 8% of their monthly salary to the Social Insurance fund.
- Allocation: This entire 8% is designated for the Retirement and Survivorship Fund.
Employer Contribution
The employer bears the responsibility for contributing to multiple component funds based on the employee’s payroll:
- 3% into the Sickness and Maternity Fund.
- 14% into the Retirement and Survivorship Fund.
- Note: Employers may also be required to contribute to the Occupational Accident and Disease Fund as governed by the Law on Occupational Safety and Hygiene.
3. Statutory Benefits and Coverage
Foreign nationals contributing to the mandatory scheme are entitled to social insurance regimes comparable to Vietnamese nationals, including:
- Sickness: Entitlement to paid leave for medical treatment or when caring for sick children.
- Maternity: Comprehensive coverage during pregnancy, childbirth (including statutory 6-month leave for female employees), and adoption.
- Retirement: Monthly pension benefits upon satisfying statutory age and contribution period requirements.
- Survivorship: Allowances provided to dependents in the unfortunate event of the employee’s decease.
4. Lump-sum Social Insurance Withdrawal
A primary concern for expatriates is the liquidity of accumulated contributions. Article 102 of the Law on Social Insurance 2024 provides explicit regulations governing the lump-sum social insurance withdrawal for foreigners.
Eligibility for One-Time Settlement
Foreign workers are legally permitted to request a one-time payout in the following instances:
- Termination of Employment: The labor contract is terminated, or the work permit/practice certificate expires or is revoked.
- Ineligibility for Pension: The individual reaches retirement age but has not accumulated the requisite 15 years of contributions to qualify for a monthly pension.
- Medical Grounds: The individual suffers from life-threatening diseases (e.g., cancer, polio, severe cirrhosis) or has a working capacity reduction of 81% or more.
Calculation of Allowance
The payout amount is calculated based on the duration of contributions:
- Pre-2014: 1.5 months’ average salary for each year of contribution.
- 2014 Onwards: 02 months’ average salary for each year of contribution.
Procedural Timeline
Distinct from regulations applicable to Vietnamese nationals (who may face waiting periods under Article 70), the procedure for foreigners is expedited upon departure:
- Dossier Requirements: The applicant must submit the Social Insurance Book alongside the decision to terminate the labor contract or documentation proving the expiry/revocation of the work permit.
- Statutory Processing Time: The social insurance agency is legally mandated to resolve the request and remit payment within 05 working days of receiving a complete and valid dossier.
📞 Contact DHH Law Firm Today
Need assistance with Social Insurance Claims? Ensuring you receive your full lump-sum social insurance withdrawal before leaving Vietnam can be complex.
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