Based on Decree 143/2018/ND-CP, Resolution 68/NQ-CP, Resolution 126/NQ-CP amending Resolution 68/NQ-CP, the social insurance policies have significantly changed. Especially, there are two important changes that enterprises need to notice:
Firstly, enterprises start to pay more 14% of the salary funds on which social insurance premiums into the retirement and survivorship fund for foreign employees working in Vietnam if the foreign employees fully meet the following requirements: (i) possess a work permit or practice certificate or practice license granted by competent authorities of Vietnam; (ii) sign an indefinite-term labor contract or a definite labor contract with the term of at least 01 year with an employer in Vietnam, and (iii) not fall into 02 cases: an internal company transfer or reaching the retirement age.
Secondly, to implement the policies on sharing difficulties with enterprises during the Covid-19 pandemic, the percentage of compulsory social insurance payment will continuously change in 2022, depending on application timeline, compulsory social insurance regimes and employing Vietnamese employees or foreign employees.
These regulations will take effect on January 1st 2022.
DNC concludes that:
Enterprises employing foreign employees should note:
Since January 1st 2022, foreign employees can participate in the full compulsory social insurance regimes like Vietnamese employees, including: sickness; maternity; occupational accident and occupational disease insurance; retirement and survivorship (supplementing retirement and survivorship regimes). Thus, enterprises will arise new obligations such as financial obligations, implementing procedures with competent authorities, etc.
Beside that, the changes in the percentage of compulsory social insurance payment will lead to changes in the salary scale, payroll, etc. Therefore, enterprises need to adjust their financial obligations in accordance with law in order to ensure the interests of employees and enterprises.
If you need more information, please contact DNC Law Firm. DNC hopes to have an opportunity to support you in the future! Thank you for your consideration