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The social insurance contribution rate for foreigners in 2025 is 30% calculated on the monthly salary used as the basis for insurance contributions. According to regulations in Articles 33 and 34 of the Social Insurance Law 2024 and Decree 158/2025/ND-CP, this contribution is allocated as follows:
Detailed Contribution Allocation
| Contributor | Rate | Detailed Allocation |
|---|---|---|
| Foreign employee | 9.5% | • 8% to retirement and survivorship fund • 1.5% to health insurance fund |
| Employer | 20.5% | • 17% to social insurance fund (14% retirement + 3% sickness, maternity) • 3% to health insurance fund • 0.5% to occupational accident and disease fund* |
*Special note: For enterprises operating in industries with high risks of occupational accidents and diseases, if qualified and approved by the Ministry of Labor, War Invalids and Social Affairs, the contribution to the occupational accident and disease fund may be reduced to 0.3% (according to Decree 58/2020/ND-CP).
Key Differences Compared to Vietnamese Employees
Foreign employees DO NOT participate in unemployment insurance, resulting in a total contribution rate 2% lower than Vietnamese employees (30% vs 32%).
| Criteria | Foreign Employees | Vietnamese Employees |
|---|---|---|
| Total contribution rate | 30% | 32% |
| Employee contribution | 9.5% | 10.5% |
| Employer contribution | 20.5% | 21.5% |
| Unemployment insurance | Not applicable | 2% (Employee 1% + Employer 1%) |
| Other benefits | Same | Same |
Understanding the calculation of social insurance for foreigners will help businesses accurately calculate costs and plan budgets more effectively.
Who Must Pay Mandatory Social Insurance Under 2025 Regulations?
Foreign employees working in Vietnam are subject to mandatory social insurance participation when meeting all three conditions simultaneously (according to Clause 2, Article 2 of the Social Insurance Law 2024):
Three Mandatory Conditions
1. Valid Labor Contract with Sufficient Duration
Fixed-term labor contract of 12 months or more, or indefinite-term labor contract with an employer in Vietnam.
2. Legal Work Documents
Must have one of the following documents issued by competent Vietnamese authorities:
- Work permit
- Practice certificate
- Practice license
3. Below Retirement Age
At the time of signing the labor contract, the employee must not have reached retirement age according to Vietnamese law (men under 60, women under 55 according to the Labor Code 2019).
Cases NOT Subject to Social Insurance Contributions
Despite meeting the above conditions, foreign employees are NOT required to participate in mandatory social insurance if they fall into one of these two cases (according to Clause 2, Article 2 of Decree 143/2018/ND-CP):
Case 1: Intra-company transfers
Foreign employees transferring within a company as managers, executive directors, experts, or technical workers of foreign enterprises, temporarily moving to branches/representative offices in Vietnam and already recruited by the foreign enterprise for at least 12 consecutive months prior.
Case 2: Already at retirement age
Employees who have reached retirement age at the time of signing the labor contract.
Special case: If a foreign employee has labor relationships with multiple different enterprises, they only need to participate in social insurance with the first labor contract signed (according to Clause 1, Article 42 of Decision 595/QD-BHXH).
To implement the process correctly, businesses need to clearly understand the procedures for registering social insurance for foreigners from the moment foreign personnel join.
How to Calculate Specific Social Insurance Contributions for Foreigners?
The formula for calculating monthly social insurance contributions for foreigners is applied as follows:
General Calculation Formula
Monthly social insurance contribution = Social insurance salary × Contribution rate (30%)
Where:
- Employee contribution = Social insurance salary × 9.5%
- Employer contribution = Social insurance salary × 20.5%
Salary Used as Basis for Social Insurance Contributions
The salary used as basis for social insurance contributions includes (according to Point b, Clause 1, Article 31 of the Social Insurance Law 2024 and Article 6 of Decree 158/2025/ND-CP):
- Salary according to job or position in labor contract
- Salary allowances (position allowance, responsibility allowance, regional allowance…)
- Other supplements paid regularly monthly
Salary DOES NOT include:
- Bonuses (bonuses according to Article 104 of the Labor Code 2019)
- Welfare benefits (gifts, travel, health care…)
- Ad-hoc support payments, non-regular items
Limits on Social Insurance Salary
- Minimum level: Equal to regional minimum wage at the time of contribution (from 3,450,000 VND to 4,960,000 VND/month depending on region according to Decree 74/2024/ND-CP)
- Maximum level: Equal to 20 times the reference level at the time of contribution (20 × 2,340,000 = 46,800,000 VND/month)
What Benefits Do Foreign Employees Receive When Participating in Social Insurance?
Foreign employees participating in mandatory social insurance receive full benefits like Vietnamese employees, except for unemployment insurance (according to Chapter II of Decree 143/2018/ND-CP):
Social Insurance Benefits Received
1. Sickness Benefit
Receive sickness allowance when absent from work due to illness or disease at 75% of social insurance salary (if having 15 years or more of social insurance contributions).
2. Maternity Benefit
- Maternity leave with benefits: 6 months for childbirth
- Benefit rate: 100% of social insurance salary
- Applies to both male employees (leave when wife gives birth) and female employees
3. Occupational Accident and Disease Benefit
- Receive treatment and rehabilitation allowances
- One-time or monthly occupational accident and disease allowances depending on degree of working capacity reduction
- Recovery costs, orthopedic devices…
4. Retirement and Survivorship Benefits
- Monthly pension: When eligible (reaching age and having 20 years of social insurance contributions)
- One-time allowance: When terminating labor contract, not continuing to reside in Vietnam, or not yet eligible for pension
- Survivorship benefit: Relatives receive monthly or one-time survivor allowances when the employee participating in social insurance dies
Conditions for One-Time Social Insurance Benefits
Foreign employees receive one-time social insurance benefits in the following cases (according to Article 8 of Decree 143/2018/ND-CP):
- Going abroad to reside
- Working in Vietnam under work permit or practice certificate, practice license and labor contract expires without renewal
- Eligible for pension but not continuing to reside in Vietnam
- Terminating labor contract, practice certificate, practice license expires without renewal
One-time social insurance calculation formula:
Benefit amount = (Total months of social insurance contributions / 12) × 1.5 × Average monthly social insurance salary
Enhance Communication Skills for HR Teams
In the context of businesses having international personnel, mastering professional English is a key factor for effectively handling HR issues. Understanding the regulations on social insurance for foreigners becomes even more important when businesses need to explain these policies clearly to foreign employees. For HR professionals and accountants working with international staff, strong English communication skills are essential. To support businesses in this matter, it’s crucial to have staff who can confidently discuss complex topics like personal income tax finalization for foreigners leaving Vietnam and guide employees on how to check personal tax codes efficiently.
What Are Special Cases When Paying Social Insurance for Foreigners?
Case of Long-Term Leave
Employees not working and not receiving salary for 14 working days or more in a month are not required to pay social insurance for that month (except for maternity leave). This period is not counted toward the social insurance contribution period for benefit eligibility (according to Social Insurance Law 2024).
Case of Foreign Currency Salary
When salary is paid in foreign currency, the salary used as basis for social insurance contributions is converted to Vietnamese Dong according to the average exchange rate announced by 4 state commercial banks on:
- January 2 for the first 6 months of the year
- July 1 for the last 6 months of the year
(If this day falls on a holiday, use the exchange rate of the next working day – according to Article 6 of Decree 158/2025/ND-CP)
Case of Working at Multiple Locations
Foreign employees with multiple labor contracts with different enterprises:
- Pay social insurance according to the first labor contract signed
- Pay health insurance according to the contract with the highest salary
- Pay occupational accident and disease insurance according to each labor contract
(According to Clause 1, Article 42 of Decision 595/QD-BHXH)
Case of Hazardous Industries
Enterprises operating in industries with high risks of occupational accidents and diseases are allowed to pay a lower rate (0.3% instead of 0.5%) to the occupational accident and disease fund if:
- Not penalized for administrative violations of labor safety and social insurance in the past 3 years
- Fully implementing labor safety measures
- Having a written request and approval from the Ministry of Labor, War Invalids and Social Affairs
Comparison of Social Insurance Contribution Rates: Foreigners vs Vietnamese
Detailed Comparison by Contribution Item
| Contribution Item | Foreign Employees | Vietnamese Employees | Difference |
|---|---|---|---|
| 1. Retirement and survivorship fund | |||
| – Employee contribution | 8% | 8% | Equal |
| – Employer contribution | 14% | 14% | Equal |
| 2. Sickness and maternity fund | |||
| – Employee contribution | 0% | 0% | Equal |
| – Employer contribution | 3% | 3% | Equal |
| 3. Occupational accident and disease insurance | |||
| – Employee contribution | 0% | 0% | Equal |
| – Employer contribution | 0.5% | 0.5% | Equal |
| 4. Health insurance | |||
| – Employee contribution | 1.5% | 1.5% | Equal |
| – Employer contribution | 3% | 3% | Equal |
| 5. Unemployment insurance | |||
| – Employee contribution | 0% (not applicable) | 1% | -1% |
| – Employer contribution | 0% (not applicable) | 1% | -1% |
| TOTAL | |||
| – Employee contribution | 9.5% | 10.5% | -1% |
| – Employer contribution | 20.5% | 21.5% | -1% |
| – Total | 30% | 32% | -2% |
Actual Cost Analysis
Example comparison with salary of 30 million VND/month:
| Detail | Foreign Employees | Vietnamese Employees | Savings |
|---|---|---|---|
| Employee contribution | 2,850,000 VND (9.5%) | 3,150,000 VND (10.5%) | 300,000 VND |
| Employer contribution | 6,150,000 VND (20.5%) | 6,450,000 VND (21.5%) | 300,000 VND |
| Total/month | 9,000,000 VND | 9,600,000 VND | 600,000 VND |
| Total/year | 108,000,000 VND | 115,200,000 VND | 7,200,000 VND |
Social insurance costs for foreign employees are 2% lower than Vietnamese employees due to non-participation in unemployment insurance, equivalent to savings of approximately 600,000 VND/month with a salary of 30 million.
Frequently Asked Questions (FAQ) About Social Insurance Contribution Rates for Foreigners
Do foreigners with an 11-month contract have to pay social insurance?
No mandatory social insurance payment required. According to regulations in Clause 2, Article 2 of the Social Insurance Law 2024, only foreign employees with fixed-term labor contracts of 12 months or more are subject to mandatory social insurance participation. An 11-month contract does not meet the conditions.
Do foreigners with tourist visas working short-term have to pay social insurance?
No payment required. Foreign employees must have a work permit, practice certificate, or practice license legally issued by competent Vietnamese authorities to be subject to social insurance participation. A tourist visa is not a valid document for working and paying social insurance.
What is the minimum salary for social insurance contributions for foreigners?
The minimum salary for social insurance contributions equals the regional minimum wage at the time of contribution (from 3,450,000 VND to 4,960,000 VND/month depending on geographical region according to Decree 74/2024/ND-CP). If the actual salary is lower, contributions must be made according to the regional minimum wage.
Do foreigners aged 60 (men) or 55 (women) have to pay social insurance?
No mandatory social insurance payment. According to regulations in Clause 2, Article 2 of the Social Insurance Law 2024 and Decree 143/2018/ND-CP, foreign employees who have reached retirement age (men 60, women 55) at the time of signing the labor contract are not subject to mandatory social insurance participation.
Can companies pay social insurance for foreigners at a rate lower than actual salary?
Not allowed. The salary used as basis for social insurance contributions must be the actual monthly salary including salary level, allowances, and other supplements according to the labor contract. The minimum level must not be lower than the regional minimum wage and the maximum must not exceed 20 times the reference level (46,800,000 VND/month).
Do foreigners on maternity leave receive maternity benefits?
Yes, full maternity benefits are provided. Foreign employees participating in mandatory social insurance receive maternity benefits like Vietnamese employees, including paid maternity leave (6 months), one-time childbirth allowance, and other related benefits.
What penalties do businesses face for not paying social insurance for foreigners?
Administrative penalties and mandatory full payment of social insurance. According to Decree 12/2022/ND-CP, enterprises not fully paying social insurance for employees (including foreigners) are fined from 12,000,000 VND to 75,000,000 VND depending on violation severity, and must also pay the full outstanding social insurance amount plus late payment interest.
Do foreigners working online from abroad for Vietnamese companies have to pay social insurance?
No social insurance payment in Vietnam required. Mandatory social insurance only applies to foreign employees working in Vietnam (on Vietnamese territory). Employees working remotely from abroad are not subject to mandatory social insurance participation under Vietnamese regulations.
Can foreigners withdraw social insurance in one lump sum when returning home?
Yes, one-time withdrawal is permitted. When foreign employees terminate their labor contract, work permit expires without renewal, or go abroad to reside, they receive one-time social insurance according to the formula: (Total months of social insurance contributions / 12) × 1.5 × Average monthly social insurance salary.
If a contract is extended from 11 months to 12 months, must social insurance be paid retroactively from the beginning?
Social insurance must be paid from the time the contract is extended to 12 months. When a labor contract is extended or supplemented to reach 12 months or more, the foreign employee becomes subject to mandatory social insurance participation from the effective date of the extended/supplemented contract, not retroactively from the beginning.