Latest regulations on foreign workers participating in social insurance

According to Ms. Duong Thi Minh Chau - Head of the Department of Propaganda and Support for Participants (Hanoi Social Insurance), related to foreign workers, according to the provisions of the Law on Social Insurance 2024, foreign workers with labor contracts of 12 months or more will be subject to compulsory social insurance (SI).

However, there are some notable exceptions. Specifically, foreign workers who travel within the enterprise or are sent by a parent enterprise abroad to work in Vietnam but are still on the payroll of the sending unit will not have to pay social insurance in Vietnam.

In addition, for countries where Vietnam has signed bilateral agreements or international treaties on social insurance, if foreign workers (such as Korean workers) have confirmed that they are participating in social insurance in their country, then they will no longer have to participate in compulsory social insurance in Vietnam to work in Vietnam.

A new point of the Law on Social Insurance 2024 compared to the Law on 2014 is that previously, it required foreign workers to have a labor contract for 12 months or more and have a practice license or a new labor license to participate. However, according to the new law, the conditions for a practice license have been removed; only employees with a labor contract of 12 months or more are subject to compulsory social insurance.

Ms. Chau noted that the above regulations only apply within the scope of social insurance contributions. Regarding the regulation on signing and performing labor contracts with foreigners, enterprises must still fully comply with the conditions according to the law on labor, including the requirement for a labor license when using foreigners to work in Vietnam.

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