Which kind of insurance must foreign employees participate in?

Insurance is an employee's right when they work for employer. However are foreign employees entitled to all kinds of insurance as Vietnamese employees?

Unemployment insurance:

Pursuant to Article 43 of the Employment Law 2013:

"1. Employees must participate in unemployment insurance when working under labor contracts or employment contracts"

On the other hand, the employee in this law is understood in accordance with the provisions of Clause 1, Article 3 as follows:

"The employee is a Vietnamese citizen from the age of 15, has the ability to work and has the need to work."

Thus, foreign employees working in Vietnam are not subject to unemployment insurance.

For compulsory social insurance

Pursuant to Clause 1, Article 2 of Decree No. 143/2018/ND-CP, employees who are foreign working in Vietnam shall be subject to compulsory social insurance participation when the following conditions are:

• Having a work permit or practice certificate permit issued by a competent Vietnamese agency.
• Having an indefinite-term labor contract, a definite-term labor contract of 01 year or more with an employer in Vietnam

In case foreign employees are not subject to compulsory social insurance

-   Internal transfer within an enterprise as prescribed

The foreign who transfer internally within an enterprise means a manager, executive, expert or technical worker of a foreign company which has established a commercial presence in Vietnam’s territory who is temporarily transferred within the company to the commercial presence in Vietnam’s territory and has been recruited by the foreign company at least 12 consecutive months prior to the transfer date. (according to Clause 1, Article 3 of Decree No. 152/2020/ND-CP)

• The employee has reached the retirement age as prescribed in Clause 1, Article 187 of the Labor Code.

In addition, in Clause 1, Article 5 of Decree No. 143/2018/ND-CP, eligible foreign employees will be entitled to implement the following compulsory social insurance regimes: sickness; maternity; insurance for occupational accidents and occupational diseases; retirement and death. 

Health insurance

Pursuant to Clause 2, Article 1 of the Health Insurance Law 2008 (amended 2014), this Law applies to domestic organizations and individuals and foreign organizations and individuals in Vietnam related to health insurance.

In addition, according to Article 12 of the Law on Health Insurance 2008 (amended 2014) stipulating that the subjects participating in health insurance of employees working under indefinite-term labor contracts, labor contracts with a term of full 3 months or more; employees who are managers of enterprises entitled to salaries; officials, civil servants and civil servants (hereinafter referred to collectively as employees).

From the above grounds, it is possible to determine that foreign employees are subject to health insurance and must meet the conditions of labor contracts with a term of full 3 months or more.

Best regards

Barrso!