Social Insurance Schemes in Vietnam
Doing business in Vietnam requires all enterprise to comply with regulatory systems, one notable of which is contributing Social Insurance (SHUI) on monthly basis.
COMPULSORY SOCIAL INSURANCE CONTRIBUTION
Being considered as obligation and guarantee benefit for employee during their employment, SHUI scheme is designed to elevate this purpose. SHUI includes three key elements, in particulars:
- Social Insurance (SI)
- Health Insurance (HI)
- Unemployment Insurance (UI)
Once the employment is engaged, both employer (ER) and employee (EE) are required to contribute Social Insurance (SHUI) on monthly basis.
The Company or the employer registers SHUI unit code for SHUI contribution for local employee.
Foreign labor, who engage under labor contract and obtain work permit as legal permission for working in Vietnam, are required to contribute SHUI under separate SHUI unit code. The employer is liable for registering separate SHUI code for foreigner and contribute SHUI on monthly basis as well.
SOCIAL INSURANCE RATE
SHUI rate for local and expat is elaborated followings:
| Items | LOCAL | FOREIGNER (1) | ||
| EE | ER | EE | ER | |
| Social Insurance (SI) | 8% | 17.5% | 8% | 17.5% |
| Health Insurance (HI) | 1.5% | 3% | 1.5% | 3% |
| Unemployment Insurance (UI) | 1% | 1% | ||
| Total | 10.5% | 21.5% | 9.5% | 20.5% |
Basic salary and minimum regional salary are threshold for SHUI calculation.
The current basic salary in 2022 is VND 1,490,000. It is expected to increase by July 2023.
From 1 July 2022, minimum regional salary of Vietnam (2) is:
| Region | Minimum salary (VND) per month | USD equivalent |
| #1 | VND 4,680,000 | USD 200 |
| #2 | VND 4,160,000 | USD 178 |
| #3 | VND 3,640,000 | USD 155 |
| #4 | VND 3,250,000 | USD 140 |
(1) Decree 143/2018 dated 15 Oct 2018
(2) Decree 38/2022 dated 12 June 2022