New Regulations on Compulsory Social Insurance for Foreign Workers in Vietnam

Are Foreign Workers in Vietnam Required to Participate in Compulsory Social Insurance?

Foreign workers in Vietnam may be subject to compulsory social insurance if they meet the conditions prescribed by Vietnamese law.

Under the current regulations, a foreign employee working in Vietnam is generally subject to compulsory social insurance when entering into a fixed-term employment contract of at least 12 months with an employer in Vietnam, except for cases excluded from participation under the law.

This means not every foreign national working in Vietnam is automatically required to pay compulsory social insurance. Enterprises should review the contract type, employment status, working arrangement and applicable exceptions before determining the social insurance obligation.

Legal Basis Applicable in 2026

Since 1 July 2025, the 2024 Law on Social Insurance and its guiding documents have become the key legal framework governing compulsory social insurance. Therefore, when advising or publishing content on social insurance for foreign workers in 2026, enterprises should not rely only on Decree 143/2018/ND-CP as before.

Key legal bases include:

• The 2024 Law on Social Insurance;
• Decree 158/2025/ND-CP detailing and guiding certain provisions of the Law on Social Insurance regarding compulsory social insurance;
• Decree 274/2025/ND-CP detailing certain provisions on late payment and evasion of compulsory social insurance and unemployment insurance contributions, as well as complaints and denunciations related to social insurance;
• Relevant regulations on health insurance, occupational accident and disease insurance, and management of foreign workers in Vietnam.

Because social insurance policies, salary bases and electronic transaction forms may be adjusted from time to time, enterprises should check the current regulations before carrying out procedures.

Foreign Workers Subject to Compulsory Social Insurance

A foreign employee working in Vietnam is subject to compulsory social insurance when entering into a fixed-term employment contract of at least 12 months with an employer in Vietnam.

When determining the social insurance obligation, enterprises should check:

• Whether the employee is a foreign citizen working in Vietnam;
• Whether the employment contract has a term of at least 12 months;
• Whether the employee falls under an exception not subject to compulsory social insurance;
• Work permit, work permit exemption confirmation or relevant labor documents;
• Salary information used as the insurance contribution base;
• Social insurance code, HR dossier and identity information of the employee.

Important note: the conditions for compulsory social insurance participation and the conditions for lawful employment in Vietnam are related but not identical. Although social insurance focuses on the labor relationship and employment contract, enterprises still need to review work permits, work permit exemptions, visas, temporary residence cards and other procedures related to foreign workers.

Foreign Workers Not Subject to Compulsory Social Insurance

Foreign workers may not be subject to compulsory social insurance if they fall under one of the statutory exceptions.

Common cases to review include:

• Intra-company transferees;
• Employees who have reached retirement age under Vietnamese labor law at the time of entering into the employment contract;
• Cases where an international treaty to which Vietnam is a member provides otherwise;
• Other cases prescribed or guided by the competent authority at the time of implementation.

For intra-company transferees, enterprises should carefully review the nature of the transfer, the employee’s working period at the foreign enterprise before being assigned to Vietnam, job position and supporting documents. It should not be assumed that every foreign employee assigned by a parent company is automatically exempt from compulsory social insurance.

Compulsory Insurance Contribution Rates for Foreign Workers in 2026

Foreign Employee’s Contribution

Foreign employees subject to compulsory insurance generally contribute:

The contribution is calculated based on the monthly salary used as the insurance contribution base as prescribed.

Employer’s Contribution

The employer of a foreign worker subject to compulsory insurance generally contributes:

Therefore, the total compulsory insurance contribution rate for foreign workers is generally 30%, including 9.5% contributed by the employee and 20.5% contributed by the employer.

Are Foreign Workers Required to Pay Unemployment Insurance?

Foreign workers are not subject to unemployment insurance in the same way as Vietnamese employees. Therefore, when calculating compulsory insurance costs for foreign workers, enterprises should not add the 1% employee and 1% employer unemployment insurance contributions applied to Vietnamese employees.

However, enterprises should clearly distinguish social insurance, health insurance, occupational accident and disease insurance, and unemployment insurance to avoid incorrect HR cost calculations.

Salary Used as the Contribution Base for Foreign Workers

The monthly salary used as the compulsory social insurance contribution base generally includes job or position-based salary, salary allowances and other additional amounts as prescribed, as reflected in the employment contract and payroll records.

Enterprises should note:

• The contribution base must be consistent with the employment contract and payroll;
• It must not be lower than the minimum level prescribed at the time of contribution;
• The maximum monthly salary used as the contribution base is determined according to the current statutory cap;
• If salary is stated in a foreign currency, it must be converted into Vietnamese Dong according to the prescribed principle;
• Allowances and other additional payments must be properly classified to determine whether they are included in the social insurance salary base.

Since the 2024 Law on Social Insurance came into effect, enterprises should use wording based on the current “reference level” and applicable regulations, and should not mechanically state “not exceeding 20 months of base salary” without reviewing the rules applicable at the time of contribution.

Social Insurance Benefits for Foreign Workers

Foreign workers subject to compulsory social insurance may be entitled to statutory benefits if the relevant conditions are met.

Possible benefit groups include:

• Sickness benefits;
• Maternity benefits;
• Occupational accident and disease benefits;
• Retirement benefits;
• Survivorship benefits;
• Lump-sum social insurance benefits in eligible cases;
• Health insurance benefits as prescribed if participating in health insurance.

Eligibility conditions, benefit dossiers and processing times may differ for each scheme. Enterprises and employees should check each specific case carefully, especially when the foreign employee terminates the contract, leaves Vietnam, changes employer or changes residence status in Vietnam.

Documents for Compulsory Social Insurance Registration for Foreign Workers

The compulsory social insurance registration dossier for foreign workers should be prepared based on the employee’s status, enterprise information and transaction method with the social insurance authority.

In general, enterprises should prepare or review:

• Employment contract of the foreign worker;
• Passport or identity document of the employee;
• Work permit or work permit exemption confirmation where relevant;
• Social insurance code if previously issued;
• Declaration for participation or adjustment of social insurance and health insurance information using the current form where required;
• List of employees participating in or adjusting social insurance and health insurance through the applicable electronic transaction system or paper dossier;
• Enterprise dossier, unit code and electronic transaction account information with the social insurance authority;
• Vietnamese translation or valid certification for foreign documents if required by the receiving authority.

Because forms and submission methods may change according to the social insurance electronic transaction system, enterprises should check the current forms at the time of implementation instead of reusing old internal templates.

Process for Registering Foreign Workers for Social Insurance

Step 1: Determine Whether the Employee Is Subject to Participation

The enterprise must determine whether the foreign employee is subject to compulsory social insurance. Key points include the employment contract type, contract term, retirement age, intra-company transfer status and any applicable international treaty provisions.

Step 2: Review the Foreign Worker’s Labor Dossier

The enterprise reviews the work permit, work permit exemption confirmation, visa, temporary residence card, employment contract and HR information. This helps ensure that the social insurance dossier is consistent with the employee’s labor and residence dossiers.

Step 3: Standardize Personal Information and Social Insurance Code

The foreign employee’s personal information must be consistent across the passport, employment contract, work permit, social insurance dossier and the enterprise’s HR management system.

If the employee previously participated in social insurance in Vietnam, the enterprise should check the existing social insurance code to avoid duplication or incorrect information. If the employee has not been issued a social insurance code, the enterprise submits the declaration for new issuance according to current guidance.

Step 4: Declare the Employee for Social Insurance Participation

The enterprise declares the foreign employee for social insurance participation through the electronic transaction system or another method accepted by the social insurance authority. The dossier must correctly show the salary contribution base, participation start date and related information.

If the dossier lacks information, contains an incorrect code, has an incorrect contract effective date or is inconsistent with the social insurance authority’s data, the enterprise may need to adjust or supplement the application.

Step 5: Track the Result and Pay Contributions on Time

After submission, the enterprise should track the processing result, update the social insurance code if issued, check the employee’s information in the system and pay contributions on time.

Regular monitoring helps enterprises avoid late payment, underpayment or incorrect participation, especially for foreign workers whose contracts change, employment ends, positions change or working period in Vietnam expires.

Risks of Late Payment or Evasion of Social Insurance Contributions

Enterprises employing foreign workers subject to compulsory social insurance must make contributions correctly and fully as prescribed. Late payment, underpayment, incorrect contribution or evasion of social insurance may result in legal and financial risks.

Potential risks include:

• Collection of unpaid contributions;
• Additional payment calculated based on the unpaid amount and number of late/evasion days as prescribed;
• Administrative penalties for violations;
• Criminal liability consideration if the evasion is serious and meets statutory elements;
• Impact on the employee’s social insurance and health insurance benefits;
• Impact on the enterprise’s labor compliance reputation;
• Difficulties during labor inspections, HR audits or foreign worker-related procedures.

Since Decree 274/2025/ND-CP came into effect, enterprises need to monitor their social insurance obligations more closely to avoid unnecessary costs and risks.

Common Mistakes When Handling Social Insurance for Foreign Workers

Enterprises employing foreign workers often encounter the following mistakes when handling social insurance obligations:

• Continuing to apply outdated regulations without updating the 2024 Law on Social Insurance and new guiding documents;
• Failing to correctly identify whether the employee is subject to compulsory social insurance;
• Confusing ordinary foreign workers with intra-company transferees;
• Using outdated fixed retirement ages without checking the retirement age schedule for each year;
• Calculating contribution rates incorrectly by adding unemployment insurance;
• Determining the salary contribution base incorrectly;
• Failing to standardize passport information, full name, nationality, gender or date of birth;
• Not checking whether the employee already has a social insurance code;
• Delayed increase or decrease reporting when the employee starts or ends the contract;
• Lack of timely coordination between HR, accounting, legal and foreign worker dossier advisory teams.

These errors may cause repeated dossier adjustments, back-payment costs or affect the employee’s benefits.

Compulsory Social Insurance Consultation Service for Foreign Workers by Nhị Gia

Compulsory social insurance for foreign workers is an area enterprises need to manage carefully, especially after the policy updates under the 2024 Law on Social Insurance and new guiding documents. Incorrectly determining the covered employee group, contribution rate or dossier may directly affect HR costs, legal compliance and employee benefits.

With experience in foreign worker dossiers, work permits, visas, temporary residence cards and corporate legal documentation, Nhị Gia supports enterprises in reviewing social insurance obligations for foreign workers on a case-by-case basis.

Nhị Gia supports:

• Checking whether a foreign employee is subject to compulsory social insurance;
• Reviewing employment contract type, contract term and working status in Vietnam;
• Checking work permit, work permit exemption, visa and temporary residence card status;
• Advising on compulsory insurance contribution rates for both employee and employer;
• Reviewing the salary used as the insurance contribution base;
• Supporting standardization of foreign employee information before declaration;
• Coordinating with HR/accounting teams to prepare relevant documents;
• Advising on arising cases such as increase reporting, decrease reporting, contract changes, contract termination or employee repatriation;
• Supporting related procedures involving work permits, visas, temporary residence cards and residence dossiers.

Nhị Gia does not replace the social insurance authority in deciding receipt, processing or confirmation of insurance obligations. However, reviewing the dossier from the beginning helps enterprises reduce errors, save time and minimize risks during implementation.

Nhị Gia Service Timeline

The statutory processing time for social insurance dossiers refers to the processing time of the social insurance authority or electronic transaction system after receiving a complete and valid dossier. It is not the entire actual timeline when enterprises use Nhị Gia’s consultation and dossier support service.

When using Nhị Gia’s service, the actual timeline depends on the foreign worker’s dossier status, how quickly the enterprise provides the employment contract and HR documents, work permit/work permit exemption review, information standardization, coordination with HR/accounting teams, transaction method with the social insurance authority and any adjustment requests that may arise.

Nhị Gia will advise the estimated timeline after reviewing the enterprise’s specific dossier.

Contact Nhị Gia for Foreign Worker Social Insurance Consultation

If your enterprise employs foreign workers in Vietnam and needs to review compulsory social insurance obligations, contribution rates, participation dossiers or related procedures involving work permits, visas and temporary residence cards, please contact Nhị Gia for case-specific consultation.

Please contact Hotline 1900 6654 or email info@nhigia.vn for detailed support from Nhị Gia’s specialists.