In Vietnam, employers are required to contribute to several insurance policies for their employees, including social insurance, health insurance, and unemployment insurance. The total employer payroll contributions for these insurances are 21.5%, while the total employee payroll contributions are 10.5%. There are different rates for employer and employee contributions for each type of insurance.
Here is a more in-depth look into the insurance details and insurance coverages:
Insurance details
Employer Payroll Contributions
|
0.50% |
Social Insurance (Labor, Accident, and Occupational Disease Fund) |
|
|
14.00% |
Social Insurance (Retirement & Death Gratuity) |
|
|
3.00% |
Social Insurance (Sickness & Maternity) |
|
|
3.00% |
Health Insurance |
|
|
1.00% |
Unemployment Insurance (The maximum salary for Unemployment insurance is 93,600,000 VND.) |
|
|
21.50% |
Total Employment Cost |
|
Employee Payroll Contributions
|
8.00% |
Social Insurance |
|
|
1.50% |
Health Insurance |
|
|
1.00% |
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|
|
10.50% |
Total Employee Cost |
|
As of January 1, 2022, foreigners working in Vietnam are also required to contribute to the social insurance program.
Businesses need to pay attention to
- Social insurance and unemployment insurance only apply to Vietnamese employees.
- Health insurance applies to Vietnamese and foreign employees working under Vietnamese Labor Law.
- For employees whose contract is valid for more than three months or an indefinite period, it is mandatory for the employer will pay insurance.
According to the Health Insurance Code No. 46/2014/QH13, the Employment Code No. 38/2013/QH13, and the Social Insurance Code No. 58/2014/QH13, all domestic and foreign companies operating in Vietnam are required to pay social insurances for employees under labour contracts with a definite term of over one month or labour contracts with indefinite terms, pay health insurances for employees under labour contracts with a definite term of over three months or labour contracts with indefinite terms, and pay unemployment insurances for Vietnamese employees under labour contracts with a definite term of over three months or labour contracts with indefinite terms.
Insurance coverage
Social insurance covers employee benefits:
- Sick Days: Employees certified sick by a medical professional can receive sick leave benefits from the Social Insurance Authority. Leave duration and payment vary based on contribution history and illness type.
- Maternity Leave: Female employees are entitled to 6 months of maternity leave, with payment from the Social Insurance Authority for Vietnamese nationals. Expatriates' payment is based on mutual agreement.
- Paternity Leave: New fathers are entitled to 5 to 14 days of paternity leave, depending on the birth type, with payment from the Social Insurance Authority for Vietnamese nationals. Expatriates' payment depends on their employer's agreement.
- Parental Leave: Eligible employees can avail of up to 20 working days per year for children under three, and up to 15 working days per year until age seven, with payment from the Social Insurance Authority for Vietnamese nationals.
Health insurance
Health insurance entitles employees to a medical examination and inpatient and outpatient treatments at authorized medical establishments.
Unemployment insurance
Unemployment insurance serves as a substitute for severance pay and is disbursed to employees based on the duration of their contributions and those of their previous employers. The amount of the monthly unemployment allowance is determined by calculating 60% of the individual's average salary during the last six months of employment.
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