What Foreign Workers Need to Know About Vietnam’s New Social Insurance Regulations

Effective July 1, 2025, the 2024 Social Insurance Law and Decree 158/2025/NĐ-CP will come into force, providing clearer regulations on mandatory social insurance participation for foreign workers in Vietnam.

According to Vietnam Social Insurance, foreign workers in Vietnam with employment contracts of 12 months or more are subject to mandatory social insurance participation. However, the new law also outlines specific exceptions where foreign workers are exempt from contributing to social insurance in Vietnam.

Specifically, foreign workers transferred within the same company or seconded by a parent company abroad to work in Vietnam while remaining on the payroll of the sending entity are exempt from social insurance contributions in Vietnam. Additionally, for countries that have signed bilateral agreements or international treaties on social insurance with Vietnam, foreign workers who are confirmed to be participating in social insurance in their home country (such as South Korean workers) are also exempt from mandatory contributions when working in Vietnam.

Compared to the 2014 Social Insurance Law, a notable change is the removal of the requirement for a professional license. Under the previous regulations, foreign workers could only participate in social insurance if they had a contract of 12 months or more and held a professional license or work permit. The new law, however, only requires an employment contract of 12 months or more, regardless of professional licensing conditions.

While exempt from social insurance contributions in certain cases, employers of foreign workers must still comply with labor regulations, including the mandatory requirement for work permits when signing and executing employment contracts.

Under the new regulations, foreign workers participating in mandatory social insurance in Vietnam will enjoy the same benefits as domestic workers, including sickness, maternity, work-related accidents and occupational diseases, retirement, and survivor benefits.

Regarding contribution levels, the total monthly contribution is 25% of the salary used as the basis for social insurance. Foreign workers contribute 8% to the retirement and survivor fund, while employers contribute 17% (3% for sickness and maternity benefits and 14% for retirement and survivor benefits).

The new regulations are expected to enhance transparency, fairness, and suitability for foreign workers, while ensuring their social security rights while working in Vietnam.