Headlines 20/10/2018 09:40 SA

Hot news: Guidance on payment of SI contributions for foreign employees now available

Hải Hà

The Government has recently issued the Decree No. 143/2018/ND-CP elaborating on the Law on Social Security and the Law on Occupational Safety and Hygiene regarding the compulsory SI program in which foreign employees who are foreign nationals are required to participate whilst working in Vietnam.

The Decree has provided detailed instructions for the following specific matters:

- Regarding subjects of the compulsory SI program, foreign nationals working in Vietnam are required to participate in this program when they obtain the work permit, the practicing certificate, the practicing license issued in Vietnam, the indefinite-term employment contract or the employment contract valid for at least 1 year with employers in Vietnam.

- The compulsory SI program in which employees are required to participate is composed of sickness, maternity and paternity, occupational accident, occupational disease, retirement and death insurance programs.

- Regarding the contribution rates:

* From January 1, 2022, a foreign employee must make a monthly contribution accounting for 8% of his/her monthly salary into the retirement and death benefit fund. 

* An employer must make monthly contributions which are the percentages of the payroll for the employee’s SI contributions 

+ 3% paid into the sickness, maternity and paternity insurance fund;

+ 0.5% paid into the occupational accident – occupational disease insurance fund;

+ 14% paid into the retirement and death insurance fund from January 1, 2022.

The Decree No. 143/2018/ND-CP is going to be in force on December 1, 2018.

>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE

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