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Since January 1, 2022, Vietnam has elevated the social insurance coverage charges for overseas staff. Overseas staff must pay an eight p.c price, whereas employers contribute 17.5 p.c to the social insurance coverage fund. This will probably be in step with the identical charges as Vietnamese staff.
As with Vietnamese staff, the obligatory social insurance coverage scheme for overseas staff covers illness, maternity, occupational ailments, accidents, retirement, and dying.
The wage topic to social insurance coverage contribution is what’s outlined as per the labor contract, however that is capped at 20 instances the minimal wage for social insurance coverage contributions set by the federal government. At current, the utmost wage cap for the social insurance coverage contribution is US$1,295 (VND 29 million).
Social insurance coverage was made obligatory for all working foreigners as of December 1, 2018, underneath Decree 143/2019/ND-CP.
What are the standards for social insurance coverage contribution for overseas employees in Vietnam?
As per the Ministry of Labor, Invalids and Social Affairs (MoLISA), overseas employees are topic to obligatory social insurance coverage after they meet all the next situations:
- Working in Vietnam with a piece allow;
- Employed underneath a Vietnamese labor contract with an indefinite or particular time period of 1 yr or extra;
- Under 60 years of age for males or 55 years of age for girls; (Please notice that the retirement age is being steadily elevated as per the brand new labor code to 62 for males and 60 for girls by 2028 and 2035 respectively); and
- Are usually not an intra-company transferee (should be a supervisor/government/professional/technician employed by the abroad entity for no less than 12 months earlier than being assigned to the corporate’s operations in Vietnam).
As soon as a overseas employee’s employment in Vietnam expires, the overseas employee can declare a one-off fee on the contributed quantity from the social insurance coverage company within the following circumstances:
- Attain retirement age, however haven’t contributed social insurance coverage for the total 20 years;
- Endure from a deadly illness akin to most cancers, polio, HIV, or different ailments regulated by the Ministry of Well being;
- Satisfying situations for pension, however aren’t dwelling in Vietnam anymore; and
- Their employment contract is terminated or their work allow expires with out renewal.
Overseas staff ought to make the allowance request inside 30 days earlier than their contract or work allow expires. The insurance coverage authority is required to settle and pay the allowance to the worker inside 10 days from the date of receipt.
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