Foreign experts in Vietnam: must the company pay social insurance for them? Who is exempt? How much? Since 01/7/2025, the 2024 Law on Social Insurance (41/2024/QH15) and Decree 158/2025/ND-CP have clarified these questions.
Six most-asked questions, answered.
Contents
- 1. The rule: who must contribute
- 2. Three exemptions
- 3. Contribution funds
- 4. Benefits when leaving
- 5. Sanctions for non-payment
- FAQ
- When to engage counsel
- Legal references
1. The rule: who must contribute
Article 2(2) of the 2024 Law on Social Insurance: foreign employees working in Vietnam under definite-term labor contracts of 12 months or more with Vietnamese employers are subject to mandatory social insurance.
Two markers:
- Definite-term contract of 12+ months: under 12 months is not mandatory;
- Working in Vietnam: no physical work in Vietnam, no obligation.
2. Three exemptions
Even with 12+ month contracts, three groups are excluded:
- Intra-corporate transferees — assignees from a foreign parent to a Vietnamese subsidiary/branch (typically tied to work-permit exemption) are not subject to mandatory SI in Vietnam;
- Retirement age reached at contract signing;
- International treaties to which Vietnam is a party providing otherwise — e.g., bilateral SI agreements (if Vietnam has signed with the relevant country).
Group (1) is critical for FDI enterprises: distinguish intra-corporate assignees from direct hires — completely different SI obligations.
3. Contribution funds
Mandatory participants contribute to:
- Sickness and maternity fund;
- Occupational accident and disease fund;
- Pension and death fund.
Both employee and employer contribute at rates set in Decree 158/2025/ND-CP. Note: this article states no specific rates — exact fund-by-fund figures await Council verification from current texts (see uncertain_points), avoiding stale-number risk.
4. Benefits when leaving
Foreigners who contributed enjoy qualified benefits: sickness, maternity, occupational accidents/diseases… Upon ending work in Vietnam, lump-sum SI (if eligible) follows prescribed conditions — complete procedures before departure to avoid later verification hurdles.
5. Sanctions for non-payment
Enterprises failing to pay mandatory SI for foreign staff face:
- Administrative fines in the SI domain;
- Retroactive collection with late-payment interest;
- Criminal liability for SI evasion where elements are met.
Beyond money: SI violations damage compliance reputation with labor authorities.
FAQ
Full 6 Q&As (mandatory subjects, exemptions, sub-12-month contracts, rates, leaving benefits, sanctions) in frontmatter `faq_items`.
When to engage counsel
When you need: determining whether your foreign staff are mandatory SI subjects; distinguishing intra-corporate transferees from direct hires; SI compliance review for expert teams; or handling retroactive collection and fines. Contact FLAT Law Firm — hotline 0988424851.
Legal references
- Law on Social Insurance 2024 (41/2024/QH15), effective 01/7/2025 — Art.2(2) (mandatory SI: definite-term contracts of 12+ months; exclusions: intra-corporate transferees, retirement age, international treaties).
- Decree 158/2025/ND-CP, effective 01/7/2025 — detailing the 2024 SI Law.
