Insurance Policies For Foreign Employees In Vietnam


Foreign nationals working in Vietnam are subject to several insurance regimes, in which participation of the enterprises they work for has been made mandatory.

Mandatory social insurance embodies regimes of sickness, maternity, labor accident, occupational disease, pension and survivorship allowance. Health insurance includes medical care supported by Health Insurance Fund. Unemployment insurance comprises of unemployment allowance; job counseling and recommendation; vocational training support and skills training, fostering and improving support. Under 2013 Law on Employment, foreign employees are not obliged to participate in unemployment insurance.

Social insurance

In accordance with 2006 Law on Social Insurance, foreign employees in Vietnam are not obliged to participate in mandatory or voluntary social insurance. However, under new provisions of 2014 Law on Social Insurance, which will come into effect on January 1st 2016, foreign employees whose work permits, practice licenses or certicicates were granted by competent Vietnamese authorizes are subject to mandatory social insurance.

Health insurance

Foreign employees (including paid enterprise managers) who work under indefinite labor contracts or definite contracts with a term of full 3 months or more in Vietnam are compulsory to participate in health insurance under the current regulations. Foreign employees pay one-third and employers pay two-third of the insurance premiums with the maximum rate of 6% of monthly salary.

Foreign employees’ salary which acts as the base of calculating health insurance premiums is the salary stated in their labour contracts and mandated to be calculated in VietNam Dong (in case the salary in the labor contracts is in foreign currency). The foreign exchange rate is based on the average rate of the interbank foreign currency market quoted by The Vietnam State Bank on January 2nd for the first 6 months and July 1st for the last 6 months of the year.

The foreign employees’ insurance premiums are deducted from salary and paid to Health Insurance Fund by the employers monthly, quarterly or biannually in case the enterprise operating in the field of agriculture, forestry, fishery and salt industry (manufacturing and processing salt). The level of health insurance enjoyed by the foreign employees is 80% of health care fees.

PLF Law Firm 

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