When must businesses pay social insurance for foreign employees?

On October 10, many businesses in Ho Chi Minh City participating in a dialogue with the government all had common questions related to mandatory social insurance (SI) payments for foreign workers.

Specifically, businesses wonder that, in the case of foreign workers who sign contracts with the business but do not receive monthly salaries, and only come to Vietnam to work. At this time, the company only pays for incidental expenses such as food, accommodation, travel, etc. So how should businesses pay social insurance fees?

Providing more information on this content, Ms. Nguyen Thi Hong Thao, Head of Social Insurance Regime Department (Ho Chi Minh City Social Insurance) said that according to Decree 143/2018/ND-CP, foreign employees working in Vietnam are subject to compulsory social insurance when they have a work permit or practice certificate/practice license issued by a competent authority of Vietnam; Have an indefinite-term labor contract or a fixed-term labor contract of 12 months or more with an employer in Vietnam.

Many questions from businesses related to labor contracts with special employees ... were answered at the dialogue.

Accordingly, the authorities will base on these conditions and forms of work in Vietnam to grant permits to foreign workers. Companies also determine the above conditions to pay compulsory social insurance, not based on working time. When the employee no longer works, the company will report the reduction in staff and will not have to pay anymore.

In the case of part-time workers who move between countries frequently, the company and the worker must agree on a suitable contract. As for the contract, it depends on the nature of the work of both parties. The two parties must agree on how to come up with the most suitable agreement.

Enterprises need to determine which subjects are subjects participating in social insurance. Accordingly, before working, they must negotiate a labor contract in accordance with the regulations, nature, and production situation of each company.

Ms. Thao added that only when foreign workers have a work permit and sign an indefinite-term contract or a contract with a term of 12 months or more, they are required to pay compulsory social insurance. As for foreign workers who marry Vietnamese people, they are currently not subject to compulsory social insurance.

However, from July 2025, when the newly issued Law on Social Insurance takes effect, foreign workers married to Vietnamese people will be eligible to participate in social insurance.

“Currently, Ho Chi Minh City Social Security has also received many questions from businesses about cases that are exempted from participating in social insurance. Regarding this content, we are also asking for opinions from Vietnam Social Security. When Vietnam Social Security does not have information, we will not collect fees for these cases. We will only collect fees for cases that meet the conditions according to regulations,” said Ms. Thao.

In addition to the above content, the representative of the Department of Labor, War Invalids and Social Affairs of Ho Chi Minh City also explained in detail and specifically the policies and legal regulations, contributing to facilitating the City's business community in implementing the State's policies in a timely, quick and effective manner.

Source: https://baodautu.vn/doanh-nghiep-phai-dong-bao-hiem-xa-hoi-cho-nguoi-lao-dong-nuoc-ngoai-khi-nao-d227160.html