Công văn 1064/LDTBXH-BHXH

In response to written requests for elaborating the participants in compulsory social insurance (SI) program as specified in Decree No.143/2018/ND-CP dated October 15, 2018 of the Government on guidelines for the Law on Social Insurance and the Law on Occupational Safety and Health concerning compulsory social insurance program for foreign workers in Vietnam from some local government authorities, enterprises and enterprise associations, below are opinions from the Ministry of Labor, Invalids and Social Affairs:

Pursuant to Clause 1 Article 2 of Decree No.143/2018/ND-CP: “Employees who are foreign nationals working in Vietnam shall be required to participate in the compulsory SI program if they obtain work permits, practicing certificates, or practicing licenses issued by Vietnam’s competent authorities, or acquire indefinite-term labor contracts or labor contracts valid for at least one year with employers in Vietnam.”

Pursuant to Clause 2 Article 2 of Decree No.143/2018/ND-CP: “Employees specified in Clause 1 this Article shall be excluded from compulsory SI program as provided herein if:

a) they are intra-company transferees as stipulated in clause 1 Article 3 of the Government’s Decree No. 11/2016/ND-CP dated February 3, 2016, providing details of the implementation of certain articles of the Labor Code regarding foreign employees working in Vietnam;

b) they reach the retirement age as prescribed in Clause 1 Article 187 of the Labor Code.”

Pursuant to Clause 1 Article 3 of Decree No.11/2016/ND-CP dated February 03, 2016 of the Government providing for implementation of a number of Articles of the Labor Code regarding foreign employees working in Vietnam: “Foreign employees that are intra-company transferees are the managers, chief executive officers, experts and technicians of a foreign enterprise which has established a commercial presence in Vietnam, are temporarily transferred within the same enterprise to its commercial presence in Vietnam and have been employed by the foreign enterprise for at least 12 months.”

Pursuant to regulations mentioned above, foreign employees are required to participate in compulsory SI program if:

- they obtain a work permit or practicing certificate or practicing license issued by a competent authority in Vietnam;

- they enter into indefinite-term labor contracts or definite-term labor contracts valid for at least 1 year with employers in Vietnam;

- they have not reached the age of 60 for males and 55 for females.

- they are not intra-company transferees as specified in Clause 1 Article 3 of Decree No.11/2016/ND-CP, including employees who have been managers, chief executive officers, experts and technicians of a foreign enterprise for at least 12 months and have been transferred to work in the commercial presence of such enterprise within the territory of Vietnam.

Vietnam Social Security and Departments of Labors, War Invalids and Social Affairs of provinces and centrally-affiliated cities are required to provide guidelines on implementation for enterprises and units as per law provisions./.