Social insurance for foreigners in Vietnam: is it mandatory?

Do foreigners have to pay social insurance in Vietnam? Yes: social insurance for foreigners in Vietnam is mandatory if they work under a fixed-term labour contract of 12 months or more with an employer in Vietnam (Article 2(2) of Law No. 41/2024/QH15 on Social Insurance, in force since 1 July 2025). Three cases are carved out: intra-company transfers, employees who had already reached retirement age when the contract was signed, and cases where a treaty provides otherwise. The employee pays 9.5% of salary (including 1.5% health insurance) and the employer 20.5% (including 0.5% for work accident and occupational disease insurance; 20.3% if the employer qualifies for the 0.3% rate); on our reading, foreigners are outside unemployment insurance. Being outside the mandatory scheme is not necessarily a full saving either, because Article 168(3) of the Labour Code may require the employer to pay an equivalent sum on top of salary. This guide to social insurance for foreign employees in Vietnam is for foreign-invested companies, SMEs, HR teams and the employees themselves.

Social insurance for foreigners in Vietnam: who is covered and who is not#

Article 2(2) of Law 41/2024 sets one test and three exceptions. Article 3(1) of Decree 158/2025/ND-CP confirms that social insurance for foreign employees in Vietnam falls under the Decree.

Situation	Mandatory?	Basis
Fixed-term labour contract of 12 months or more with an employer in Vietnam	Yes	Law 41/2024, Art. 2(2)
Fixed-term labour contract of less than 12 months	Not within Art. 2(2); see Art. 168(3) Labour Code below	Art. 2(2)
Intra-company transfer	No (our reading, see below)	Art. 2(2)(a)
Already of retirement age when the labour contract is signed	No	Art. 2(2)(b); Art. 169(2) Labour Code
Treaty provides otherwise	As the treaty says	Art. 2(2)(c)
Stand-alone probation contract	No	Decree 158/2025, Art. 3(5)

Points to read carefully:

• Outside the scheme does not mean no cost. Article 168(3) of the Labour Code (consolidated text 18/VBHN-VPQH): for an employee who is not subject to compulsory social insurance, health insurance or unemployment insurance, the employer must pay on top, at the same time as each salary payment, a sum equal to what the employer would contribute for those insurances. On our reading this may apply to contracts under 12 months and to the three exceptions; we have not seen guidance on how to calculate it, book it or tax it. For the unemployment insurance part for a foreign employee, its application needs confirming (see our guide to terminating an employment contract in Vietnam).
• Intra-company transfer. Article 2(2)(a) only refers to "the law on foreign employees working in Vietnam" without naming a provision. Decree 219/2025/ND-CP has two places: Article 2(1)(b) lists "intra-company transfer" as a form of work, with no conditions; Article 7(13)(b) (on work permit exemption) defines it as a temporary move within a foreign company that has set up a commercial presence in Vietnam in one of the 11 service sectors in Vietnam's WTO schedule, of an employee the foreign company has employed continuously for at least 12 months. On a cautious reading we would use the narrower second definition (an inference; no text says so outright). An expatriate who signs a labour contract directly with the Vietnamese subsidiary, or who does not meet the definition, must be reclassified before you decide not to contribute.
• Retirement age under Article 169(2) of the Labour Code rises on a schedule (from 2021: 60 years 3 months for men, 55 years 4 months for women; plus 3 and 4 months each year). On our calculation, in 2026 it is 61 years 6 months for men and 57 for women; check the implementing guidance. The test date is when the contract is signed.
• Chains of short contracts. Article 151(2) of the Labour Code allows several successive fixed-term contracts with a foreign employee, but the text does not say whether successive contracts are added up to reach 12 months. Signing back-to-back contracts of under 12 months only to avoid contributions risks being seen as evasion; ask the social insurance office first.
• No labour contract. Article 2(2) speaks of people "working under a labour contract", while the management-position category (Article 2(1)(i)) sits in the paragraph for Vietnamese citizens. On our reading, a foreign general director or board member appointed under the charter, with no labour contract, is outside Article 2(2). But Article 13(1) of the Labour Code treats any arrangement as a labour contract if it involves paid work, a salary and management or supervision by one side, whatever it is called; if the person is in practice treated as an employee, the risk sits with the company.
• Treaties and probation. The only bilateral social insurance agreement we are aware of is the Vietnam-Korea agreement, applied since 1 January 2024 according to Vietnam Social Security; we have not read it and do not state its conditions. A stand-alone probation contract is outside the mandatory scheme; where a probation clause sits inside a fixed-term contract of 12 months or more, the text has no separate rule and the company risks being asked to contribute from the day the contract takes effect.

Is a work permit a condition for social insurance for foreigners in Vietnam?#

Do foreigners have to pay social insurance in Vietnam before they hold a work permit? Yes, if the Article 2(2) conditions are met. Article 2(2) of Law 41/2024 does not make a work permit, practising certificate or practising licence a condition of coverage; those words appear only in Article 70(2)(dd), on lump-sum withdrawal when a permit lapses and is not renewed. Decree 143/2018/ND-CP, which used to give separate guidance for foreign workers, ceased to be in force on 1 July 2025 (Article 44(2)(b) of Decree 158/2025). An employee who is exempt from a work permit still contributes if the contract is fixed-term for 12 months or more and no exception applies (see work permit exemption in Vietnam), so do not wait for a permit before registering: the 30-day clock runs from the day the employee becomes subject to the scheme (Article 28(1)). Lacking a valid permit is not a reason to skip contributions either: a foreign worker needs a permit unless Article 154 applies (Article 151(1)(d) of the Labour Code), and without one faces removal or deportation (Article 153(2)); the handbook entry what is a work permit in Vietnam explains who needs one.

How much is social insurance for foreigners in Vietnam? Rates and who pays#

The social insurance contribution rate for foreign employees in Vietnam is the mandatory rate: a total of 3% into the sickness and maternity fund and 22% into the pension and survivorship fund (Article 32(1) of Law 41/2024), split as follows.

Contribution	Employee	Employer	Basis
Sickness and maternity fund	None	3%	Art. 34(1)(a) of Law 41/2024
Pension and survivorship fund	8%	14%	Art. 33(1)(a); Art. 34(1)(b)
Work accident and occupational disease insurance	None	0.5% (0.3% if the employer meets the conditions in Article 5 of Decree 58/2020, see below the table)	Decree 158/2025, Art. 43, amending Art. 4(1) of Decree 58/2020
Health insurance	1.5%	3%	Decree 188/2025, Art. 6; Law 51/2024, Art. 1(11) (secondary check)
Unemployment insurance	Not covered (our reading)	Not covered (our reading)	Art. 2(1) and Art. 31(1) of Law 74/2025; no provision says so outright for foreigners
Total (excluding unemployment insurance)	9.5%	20.5% (20.3% at the 0.3% rate)	Sum of the lines above

Three points that are easy to get wrong:

• Health insurance (secondary information). The amended Law on Health Insurance (Article 1(10) of Law 51/2024/QH15) puts foreign employees on a fixed-term contract of 12 months or more, with the same three exceptions, in the group paid jointly by employer and employee. The law sets only a ceiling of 6%; Decree 188/2025 fixes 4.5% of the monthly salary used as the basis for mandatory social insurance. We checked this through the version published on the Government portal, without the original text on file.
• The 0.3% work accident rate. Article 43 of Decree 158/2025 (amending Article 4(1) of Decree 58/2020) allows the 0.5% or 0.3% rate for people under Article 2(2) of Law 41/2024 too, that is foreign employees; a qualifying employer pays 20.3% instead of 20.5%. The conditions are in Article 5 of Decree 58/2020; according to a Thu Vien Phap Luat summary they are: three years without a fine or criminal liability for occupational safety and social insurance breaches, timely accident reports for the three preceding years, and an accident frequency down by 15% or more or no accidents. We have not read the original Article 5, so check it before applying the rate.
• Unemployment insurance. The Employment Law defines an "employee" as a Vietnamese citizen (Article 2(1) of Law 74/2025), and Article 31(1) opens with "employees subject to unemployment insurance"; no sentence says "foreigners are not covered", but on that definition foreign employees are outside the scheme, and an advisory article on Thu Vien Phap Luat (secondary) reaches the same conclusion. Without the agency's confirmation we would not contribute for them: Article 48(3)(a) of Decree 283/2026 fines paying social or unemployment insurance for a person who is not covered. A shared payroll system often deducts it automatically, so check.

On top of insurance, the employer pays a trade union fee of 2% of the payroll used as the basis for compulsory social insurance (Article 29(1)(b) of the Law on Trade Unions 50/2024/QH15). Whether that payroll includes foreign employees' salaries has no direct official answer yet; our reading is in trade union fee in Vietnam.

Salary basis and the ceiling: what counts, and how to calculate it#

For employees on a salary set by the employer, the basis is the monthly salary: the pay for the job or title, salary allowances, and other regular, stable supplements agreed for each pay period (Article 31(1)(b) of Law 41/2024). Article 7(1) of Decree 158/2025 adds that the items must be agreed in the labour contract; allowances or supplements that depend on or vary with productivity, work process or quality do not count; and an "other supplement" must be a specific amount.

The social insurance contribution rate for foreign employees in Vietnam applies to a basis of at least the reference level and at most 20 times the reference level at the time of payment (Article 31(1)(dd)). While the statutory base salary exists, the reference level equals it (Article 141(13) of Law 41/2024; Article 5(2) of Decree 158/2025). From 1 July 2026 the base salary is VND 2,530,000 a month (Decree 161/2026/ND-CP of 15 May 2026), so the floor is VND 2,530,000 and the ceiling VND 50,600,000 a month; this is derived from those texts and the Government may adjust the reference level later. Salary in foreign currency is converted into dong at the average of the buying transfer rates published by four state-owned commercial banks at the end of 2 January (first six months) and 1 July (last six months); if that day is a holiday, use the next working day (Article 7(5) of Decree 158/2025).

Contract states a net (after-tax) salary. Article 31 of Law 41/2024 and Article 7 of Decree 158/2025 take the salary, allowances and supplements agreed in the labour contract as the basis, with no separate formula for a salary agreed after tax. So we do not state whether the basis is the net figure written in the contract or a figure grossed up to before tax, especially where the company bears the tax; confirm with the social insurance office or counsel before fixing the contribution. Converting net pay for personal income tax is a separate exercise (personal income tax for foreigners in Vietnam).

Worked example (illustrative; assumes the contract figure is the basis, from 1 July 2026). A salary of VND 40 million a month: the employee pays VND 3,800,000 (9.5%) and the employer VND 8,200,000 (20.5%). A salary of VND 100 million is capped at VND 50.6 million, health insurance included (Article 6 of Decree 188/2025): the employee pays VND 4,807,000 and the employer VND 10,373,000.

Expatriate packages: three points the texts do not fully answer.

• Housing, school fees and flights: it depends on how the contract is written. Article 7(1)(c) of Decree 158 counts as basis an "other supplement" with a specific amount, agreed in the labour contract and paid regularly and stably each pay period. On the other side, according to a Thu Vien Phap Luat summary, Official Letter 1198/CTL&BHXH-BHXH of 5 September 2025 from the Department of Wages and Social Insurance (Ministry of Home Affairs) still applies Article 3(5) of Circular 10/2020/TT-BLDTBXH: benefits and welfare items written as a separate heading in the labour contract (the example list includes housing) are not salary for the contribution basis; a Government newspaper item of July 2026 points the same way. The two rules do not exclude each other: an item written as a separate welfare heading stays outside the basis, while an item folded into the salary clause and paid in a fixed amount each period risks being counted. The letter is guidance from the authority, not a legal norm, and we have not opened the letter or the Circular themselves. The sums are usually large, so seek the social insurance office's view before fixing how the item is written.
• Split payroll: part paid under the Vietnamese contract, part from the parent abroad. Registering a salary basis lower than Article 31(1) requires is one of the evasion acts when done to avoid contributing or to contribute less (Article 39(1)(c)); if the foreign-paid part is in substance pay for work in Vietnam, the risk is real.
• Unpaid leave: if the employee is unpaid for 14 or more working days in a month, no contribution is due for that month unless both sides agree to contribute on the basis of the latest month (Article 33(5); Article 34(3)).

Registering for social insurance for foreigners in Vietnam: file and deadlines#

The employer prepares and files the registration (Article 13(1) and Article 28(1) of Law 41/2024): the employer's registration form with a list of participating employees, plus the employee's form (Article 27). Deadlines:

1. 30 days from the day the employee becomes subject to the scheme, normally the day the contract takes effect, to file (Article 28(1)).
2. 5 working days after a complete file, the social insurance agency issues the book or answers in writing with reasons (Article 28(4)).
3. The last day of the following month is the latest payment date for monthly payers (Article 34(4)); the employer deducts the employee's share from salary and pays both at the same time (Article 13(4)).
4. When details change (salary, title, new passport), file an adjustment form (Article 29).

More than 30 days without registering is late; a further 60 days without full registration falls within the evasion acts (Article 38(2); Article 39(1)(a)). Article 39 counts as evasion only acts done to avoid contributing or to contribute less, and Article 39(2) leaves it to the Government to set the cases with a justifiable reason that are not treated as evasion (Article 43 of Decree 283 also refers to this group); we have not checked that text. The texts do not list the identity documents the agency asks of a foreigner (passport, work permit, exemption certificate); ask the local social insurance office for the exact list and prepare Vietnamese translations.

Benefits and lump-sum social insurance withdrawal in Vietnam for foreigners who leave#

Foreign employees have the same mandatory benefits as Vietnamese employees (Article 4(2) of Law 41/2024) and are named directly in the articles on sickness (Article 42(1)), maternity (Article 50(1); at least 6 of the 12 months before the birth, Article 50(2)) and retirement (Article 64(1)). A pension requires at least 15 years of contributions; for an expatriate who works a few years in Vietnam that is hard to reach, so the practical routes are a lump-sum withdrawal or keeping the record. Survivors are dealt with under Articles 85, 88, 89, 90 and 91; foreign-issued documents are replaced by a notarised or certified Vietnamese translation (Article 20 of Decree 158/2025).

A lump-sum social insurance withdrawal in Vietnam for a foreign employee follows its own list in Article 70(2) of Law 41/2024. A person who has stopped participating and applies may take a lump sum in any of these cases:

1. Reached pension age with fewer than 15 years of contributions (point a).
2. Suffering from cancer, polio, decompensated cirrhosis, severe tuberculosis or AIDS (point b).
3. Working capacity loss of 81% or more, or severe disability (point c).
4. Qualifies for a pension but no longer resides in Vietnam (point d).
5. The labour contract ends, or the work permit, practising certificate or practising licence lapses and is not renewed (point dd).

Point dd is the usual route for an expatriate whose contract ends and who leaves; the text sets no waiting period. Do not confuse it with Article 70(1)(dd), for Vietnamese employees, which has more conditions: contributions before 1 July 2025, 12 months outside the mandatory scheme, no voluntary social insurance, and fewer than 20 years of contributions (Article 14 of Decree 158/2025).

Each year of contributions from 2014 onwards counts as 2 months of average monthly contribution salary; under one year is paid as the amount actually contributed, capped at 2 months of the average (Article 70(3); the average is set under Article 72 and we do not recompute it). The file is the social insurance book and a written request, with medical records for the serious-illness and incapacity cases (Article 78(1), (3), (4)); decision within 7 working days of a complete file (Article 79(3)), counting from the date of the decision (Article 70(5)). An employee without pension rights who has not taken a lump sum keeps the contribution period on record (Article 71).

When the employee leaves, the employer pays in full up to the termination date (Article 8(3) of Decree 158/2025), cooperates in confirming the contribution period (Article 13(3) of Law 41/2024) and hands over the termination paperwork within 2 working days, or faces a fine under Article 48(3)(e) of Decree 283/2026 (general procedure: terminating an employment contract in Vietnam). The texts leave two points unanswered: how a person who has already left Vietnam receives the money (power of attorney, transfer abroad), and whether the file may be submitted remotely. Ask the social insurance agency before the employee leaves.

Fines for late payment or evasion of social insurance for foreigners in Vietnam#

Decree 283/2026/ND-CP, in force since 10 September 2026 and replacing Decree 12/2022/ND-CP, is the current penalty decree. The amounts in Articles 43 and 44 and Article 48(3) are for individuals; an organisation, including a company, branch or representative office, is fined double because those provisions are not on the exceptions list (Article 7(1) and (2)(b); see Decree 283). The text states the VND 75 million cap "for the employer" within the individual rate; under Article 24 of the Law on Handling Administrative Violations (checked through an article on Thu Vien Phap Luat, original text not read), VND 75 million is the maximum for an individual and an organisation is fined twice that, VND 150 million. The table gives the figures as the text states them, that is the individual rate.

Violation	Fine as stated in the text	Basis
Late payment: not paying, or underpaying, the registered amount	12%-15% of the overdue amount at the time of the record, up to VND 75 million	Art. 43(3)
Failing to register, or registering too few people: within 60 days after the 30-day deadline, or after 60 days but not treated as evasion / after 60 days (evasion)	VND 5-10 million / VND 6-12 million for under 10 people; rising with headcount	Art. 43(2) / Art. 44(1)
Evasion: registering a lower salary basis than required, or not paying 60 days after the due date and after a reminder	18%-20% of the amount evaded, up to VND 75 million	Art. 44(2)
Paying social or unemployment insurance for a person who is not covered	VND 2-4 million per person, up to VND 75 million	Art. 48(3)(a)
The employee (not the company) agreeing with the employer not to join, or to join wrongly	VND 0.5-1 million, fine on the employee	Art. 48(2)(a)

An employer who joins an agreement "not to contribute" for a covered employee may face Article 43 or 44, not the last row of the table. The reverse also needs care: voluntarily paying compulsory social insurance for a foreigner on a contract under 12 months may fall under Article 48(3)(a) if the person is not covered. The remedies are to pay in full and an extra 0.03% a day on the overdue amount (Article 43(4); Article 44(3); Articles 40(1) and 41(1) of Law 41/2024). If the overdue amount at the time of the record is below VND 400,000, the penalty is a warning (Article 43(1)).

Article 41 of Law 41/2024 allows administrative penalties or criminal liability for evasion, and Article 4(2)(l) of Decree 283 requires the file to go to the criminal authorities when there are signs of an offence in repeat violations of compulsory social insurance payment (Article 44). We have not checked the Criminal Code, so we give no thresholds or penalty bands. The employer must also compensate employees if underpayment causes loss (Article 13(8)), is named publicly by the agency (Article 35(2)), and giving false information about the contract term to stay below 12 months is a prohibited "false registration or report" (Article 9(7)).

For a review of the whole foreign-staff file alongside the permits, see our work permit service.

Frequently asked questions on social insurance for foreigners in Vietnam#

• Do foreigners have to pay social insurance in Vietnam? Yes, if they work under a fixed-term labour contract of 12 months or more with an employer in Vietnam, subject to the three exceptions (Article 2(2) of Law 41/2024).
• Is a contract of under 12 months covered? Not by Article 2(2), but Article 168(3) of the Labour Code may require the employer to pay on top, with each salary payment, a sum equal to its own insurance contributions; back-to-back short contracts need advice from the social insurance office.
• Do foreign employees pay unemployment insurance? On our reading, no, because the Employment Law 74/2025 defines an employee as a Vietnamese citizen (Article 2(1)) and Article 31(1) uses that same term; no provision says so outright, so still confirm with the social insurance office and consider Article 168(3).
• How does a lump-sum withdrawal work for a foreigner who leaves? It is available in the cases in Article 70(2); point dd covers a contract that ends, or a work permit that lapses and is not renewed. The agency decides within 7 working days of a complete file.