Compulsory Insurance In Vietnam 2020 – What You Need To Know

Compulsory insurance in vietnam 2019

Compulsory Insurance In Vietnam 2020 – What You Need To Know

Compulsory insurance in vietnam 2019

Compulsory insurance in vietnam 2020

In accordance with the Law on Social Insurance (SI), which went into force in early 2018, the employers and employees have to contribute compulsory insurance and trade union as follows:

The payersSocial insuranceHealth insuranceUnemployment insuranceTrade Union feeTotal
Employee8%1.5%1%10.5%
Employer17.5%3%1%2%23.5%

Total: 34% on the salary and wages:

  • for the employer: 23,5%
  • for the employee: 10,5%

The cap of the salary used as the basis for social insurance contribution is: 29.800.000VND. It means, in case the salary exceeds the cap, the maximum contribution amount will be: 34% x 29.800.000VND only.

Besides the compulsory insurance, you shall declare and pay PIT 20% on local incomes for non-resident expats and pay progressive tax rates from 5% to 35% depending on income levels for resident expats and local employees. The representative office only has to pay PIT.

Foreign workers in Vietnam with a work permit, or a practice certificate or license also going have to contribute health insurance and social insurance. The basis for social insurance contribution will be broadened to include salaries, allowances and other supplementary amounts.

 

VIVA has been an in-depth consultant on business compliance procedures in Vietnam since 2006, based on our professional - integrated background in Business laws - Accounting and corporate finance - Tax management - Labor relation and payroll – Business administration procedures. VIVA offers exclusive services in an integrated tailor-made, consist of 5 specialized-expertise platforms and the inheritance experience up to hundreds of years for every job.

Our extensive expertise and management system that facilitates us to connect local resources and be ready to deliver exclusive solutions that exceed all standard limits and satisfy all expectations of our clients.

 

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Read more:

Full Compliance Procedures For Foreigners Who Are Working In Vietnam

Social Insurance For Foreigner in Vietnam – New Regulations From 2022

Three Key Points On Salary And Compulsory SI From Jan 2018

Penalties For Administrative Violations Against Regulations On Compulsory SI In Vietnam

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Compulsory Insurance In Vietnam 2020 | What You Need To Know
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Compulsory Insurance In Vietnam 2020 | What You Need To Know
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In accordance with the Law on Social Insurance, which went into force in early 2018, the compulsory insurance and trade union paid by employers and...
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VIVA Business Consulting
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