Vietnam updates social insurance law for foreign contract staff

It requires working foreign nationals to sign for compulsory social insurance system.

Vietnam has introduced clearer guidelines on mandatory social insurance for foreign workers under the 2024 Law on Social Insurance and Decree No. 158/2025/ND-CP, which both took effect on 1 July. 

The law requires foreign nationals working in Vietnam under fixed-term labour contracts of 12 months or more to participate in the country’s compulsory social insurance system.

Exemptions apply to foreign workers who are transferred within the same enterprise, have reached retirement age at the time of signing the labour contract, or are covered by international treaties that provide otherwise.

Foreign employees covered by mandatory social insurance are entitled to the same benefits as Vietnamese workers. 

These include sickness, maternity, work injury and occupational disease benefits, as well as retirement and survivorship benefits.

The monthly contribution rate for social insurance is set at 25% of the employee’s salary base. 

Of this, 8% is paid by the employee into the pension and survivorship fund, whilst employers contribute 17%—comprising 3% to the sickness and maternity fund, and 14% to the pension and survivorship fund.