Decree No. 143/2018/ND-CP detailing the Law on Social Insurance and the Labor Safety and Health Law regarding mandatory social insurance for foreign citizens working in Vietnam

DECREE

REGULATIONS DETAILING THE SOCIAL INSURANCE LAW AND THE LABOR SAFETY AND HEALTH LAW ON COMPULSORY SOCIAL INSURANCE FOR FOREIGN CITIZENS WORKING IN VIETNAM

Pursuant to the Law on Government Organization dated June 19, 2015;

Grounds: Social Insurance Law dated November 20, 2014;

Pursuant to Decree No. 39/2016/NĐ-CP dated May 15, 2016 of the Government detailing the implementation of certain provisions of the Labor Safety Law;

Decree No. 07/2021/NĐ-CP

The Government issues this Decree to detail the Social Insurance Law and the Labor Safety and Health Law on compulsory social insurance for foreign citizens working in Vietnam.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree details the Social Insurance Law and the Labor Safety and Health Law on compulsory social insurance for foreign citizens working in Vietnam.

Article 2. Applicability

1. Foreign citizens working in Vietnam who have a work permit or a professional certificate or a practice license issued by competent Vietnamese authorities and have an indefinite-term labor contract or a fixed-term labor contract of at least one year with employers in Vietnam shall be subject to compulsory social insurance.

2. Foreign workers specified in Clause 1 of this Article shall not be subject to compulsory social insurance under this Decree if they fall into any of the following cases:

a) Internal transfers within enterprises as stipulated in Clause 1 of Article 3 of Decree No. 11/2016/NĐ-CP dated February 3, 2016, detailing certain provisions of the Labor Code regarding foreign laborers working in Vietnam;

b) Workers who have reached the retirement age as prescribed in Clause 1 of Article 187 of the Labor Code.

3. Employers participating in compulsory social insurance include state agencies, public institutions, political organizations, political-social organizations, political-social-professional organizations, social-professional organizations, other social organizations; agencies, organizations from abroad, international organizations operating in Vietnam; enterprises, cooperatives, individual households, cooperative groups, other organizations, and individuals permitted to engage in business operations according to the law that hire or utilize labor under labor contracts.

4. Agencies, organizations, and individuals related to compulsory social insurance for foreign citizens.

Article 3. Rights and responsibilities of workers and employers

Workers and employers specified in this Decree shall fully enjoy rights and responsibilities as prescribed by the Social Insurance Law and the Labor Safety and Health Law.

Article 4. Complaints, reports, and handling violations concerning social insurance

Complaints, reports, and handling of violations concerning social insurance for the subjects specified in Article 2 of this Decree shall be carried out according to Chapter VIII of the Social Insurance Law.

Chapter II

COMPULSORY SOCIAL INSURANCE BENEFITS

Article 5. Compulsory social insurance benefits

1. Workers specified in Clause 1 of Article 2 of this Decree shall implement the following compulsory social insurance benefits: sickness; maternity; occupational accident and occupational disease insurance; old-age pension; and death benefit.

2. The period of compulsory social insurance for workers specified in Clause 1 of Article 2 of this Decree shall be calculated based on the time workers participate in social insurance as prescribed in this Decree.

Article 6. Sick Leave Benefits

1. Conditions for enjoying sickness benefits shall be implemented according to Article 25 of the Social Insurance Law.

2. Duration of sickness benefits

a) The duration of sickness benefits shall be implemented according to Article 26 of the Social Insurance Law;

b) The duration of benefits when children are sick shall be implemented according to Article 27 of the Social Insurance Law.

3. The level of sickness benefits shall be implemented according to Article 28 of the Social Insurance Law.

4. Restoring health after sickness shall be implemented according to Article 29 of the Social Insurance Law.

Article 7. Maternity Leave Benefits

1. Conditions for enjoying maternity benefits shall be implemented according to Article 31 of the Social Insurance Law.

2. Duration of maternity benefits

a) The duration of benefits for prenatal examinations shall be implemented according to Article 32 of the Social Insurance Law;

b) The duration of benefits for miscarriage, abortion, stillbirth, or pathological abortion shall be implemented according to Article 33 of the Social Insurance Law;

c) The duration of benefits for childbirth shall be implemented according to Article 34 of the Social Insurance Law;

d) The duration of benefits for adopting a child shall be implemented according to Article 36 of the Social Insurance Law;

đ) The duration of benefits for implementing contraceptive measures shall be implemented according to Article 37 of the Social Insurance Law.

3. Level of maternity benefits

a) Female workers giving birth and workers adopting a child shall receive a one-time allowance as prescribed in Article 38 of the Social Insurance Law;

b) The level of maternity benefits shall be implemented according to Article 39 of the Social Insurance Law.

4. Female workers returning to work before the end of their maternity leave shall be implemented according to Article 40 of the Social Insurance Law.

5. Maternity benefits for female workers carrying a surrogate pregnancy and the mother of the surrogate pregnancy shall be implemented according to Article 35 of the Social Insurance Law and Articles 3 and 4 of Decree No. 115/2015/NĐ-CP dated November 11, 2015, detailing certain provisions of the Social Insurance Law on compulsory social insurance (hereinafter referred to as Decree No. 115/2015/NĐ-CP).

6. Restoring health after maternity shall be implemented according to Article 41 of the Social Insurance Law.

Article 8. Work Injury and Occupational Disease Insurance Regime

1. Conditions for Entitlement

a) The conditions for entitlement to work injury benefits shall be implemented in accordance with the provisions of Article 45 of the Labour Safety and Health Law;

b) The conditions for entitlement to occupational disease benefits shall be implemented in accordance with Clause 1 of Article 46 of the Labour Safety and Health Law.

2. Assessment of Reduction in Working Capacity shall be carried out in accordance with the provisions of Article 47 of the Labour Safety and Health Law.

3. Levels of Entitlement to Work Injury and Occupational Disease Insurance Benefits

a) One-time Allowance shall be implemented in accordance with the provisions of Article 48 of the Labour Safety and Health Law;

b) Monthly Allowance shall be implemented in accordance with Clauses 1, 2, 3, 4 and Clause 6 of Article 49 of the Labour Safety and Health Law.

4. Living Assistance Equipment and Orthopedic Devices shall be implemented in accordance with the provisions of Article 51 of the Labour Safety and Health Law.

5. Service Allowance shall be implemented in accordance with the provisions of Article 52 of the Labour Safety and Health Law.

6. Time of Entitlement to Allowance shall be implemented in accordance with the provisions of Article 50 of the Labour Safety and Health Law.

7. Allowance when Workers Die due to Work Injuries or Occupational Diseases shall be implemented in accordance with the provisions of Article 53 of the Labour Safety and Health Law and Article 10 of this Decree.

8. Rehabilitation after Treatment of Work Injuries or Occupational Diseases shall be implemented in accordance with the provisions of Article 54 of the Labour Safety and Health Law.

9. Work Injury and Occupational Disease Insurance Regime for Workers who Enter into Employment Contracts with Multiple Employers shall be implemented in accordance with the provisions of Article 5 of Decree No. 37/2016/NĐ-CP dated May 15, 2016 of the Government detailing and guiding the implementation of certain provisions of the Labour Safety and Health Law on mandatory work injury and occupational disease insurance (hereinafter referred to as Decree No. 37/2016/NĐ-CP).

10. Support for Vocational Transition for Workers Suffering from Work Injuries or Occupational Diseases when Returning to Work shall be implemented in accordance with the provisions of Article 55 of the Labour Safety and Health Law and Articles 7 and 8 of Decree No. 37/2016/NĐ-CP.

11. Support for Activities to Prevent and Share Risks of Work Injuries and Occupational Diseases shall be implemented in accordance with the provisions of Clause 1, Point a, Point b and Point d of Clause 2, Clause 3 of Article 56 of the Labour Safety and Health Law and Articles 11, 12, 15, 16, 19, 20, 23 and Article 24 of Decree No. 37/2016/NĐ-CP.

Article 9. Retirement Benefit Regime

1. Workers specified in Clause 1 of Article 2 of this Decree shall be entitled to retirement pension upon meeting the conditions for retirement pension as stipulated in Clause 1 of Article 54 of the Social Insurance Law and Article 6 of Decree No. 115/2015/NĐ-CP.

2. Level of Enjoyment

a) The monthly retirement pension level shall be implemented in accordance with the provisions of Clause 2 of Article 56 of the Social Insurance Law and Clauses 1 and 2 of Article 7 of Decree No. 115/2015/NĐ-CP;

b) One-time Allowance upon Retirement shall be implemented in accordance with the provisions of Article 58 of the Social Insurance Law;

c) The average monthly salary for calculating retirement pension and one-time allowance shall be implemented in accordance with the provisions of Clause 2 of Article 62 of the Social Insurance Law.

3. Adjustment of Salary Already Paid for Social Insurance shall be implemented in accordance with the provisions of Clause 2 of Article 63 of the Social Insurance Law.

4. Adjustment of Retirement Pension shall be implemented in accordance with the provisions of Article 57 of the Social Insurance Law and Clause 2 of Article 10 of Decree No. 115/2015/NĐ-CP.

5. Time of Entitlement to Retirement Pension shall be implemented in accordance with Clauses 1 and 3 of Article 59 of the Social Insurance Law.

6. Cases Entitled to One-time Social Insurance Payment

Workers specified in Clause 1 of Article 2 of this Decree may be entitled to one-time social insurance payment if they fall under any of the following cases:

a) Reaching the age for retirement pension as stipulated in Clause 1 of this Article but not having contributed to social insurance for at least 20 years;

b) Being diagnosed with one of the life-threatening diseases such as cancer, polio, cirrhosis, leprosy, severe tuberculosis, HIV/AIDS and other diseases as prescribed by the Ministry of Health;

c) Workers who meet the conditions for retirement pension as stipulated in Clause 1 of this Article but do not continue to reside in Vietnam;

d) Workers whose employment contracts or work permits, professional certificates, practice licenses have expired without renewal.

7. Level of Entitlement to One-time Social Insurance Payment shall be implemented in accordance with Point b of Clause 2 of Article 60 of the Social Insurance Law.

8. The time for calculating one-time social insurance payment is the date recorded in the decision of the social insurance agency. Adjustments to the salary already paid for social insurance to calculate one-time social insurance payment shall be based on the date recorded in the Decision of the social insurance agency.

9. Preservation of Social Insurance Contribution Period

Workers who cease working but do not meet the conditions for retirement pension as stipulated in Clause 1 of this Article or have not received one-time social insurance payment as stipulated in Clause 6 of this Article shall have their social insurance contribution period preserved.

10. Suspension and Resumption of Retirement Pension and Monthly Social Insurance Allowance

a) Cases of suspension and resumption of retirement pension and monthly social insurance allowance shall be implemented in accordance with the provisions of Clause 1 of Article 64 of the Social Insurance Law;

b) Retirement pension and monthly social insurance allowance shall continue to be provided when the person returns from abroad and resides in Vietnam. In case there is a court decision revoking a declaration of disappearance, in addition to continuing to receive retirement pension and social insurance allowance, the person will also be entitled to back payments from the date of suspension;

c) The social insurance agency must notify in writing and specify the reasons when deciding to suspend benefits according to point a of this clause. Within thirty days from the date of suspension, the social insurance agency must issue a decision to resume benefits; in case of terminating social insurance benefits, the reasons must be clearly stated.

Article 10. Funeral Allowance System

1. Funeral allowance shall be implemented in accordance with the provisions of Article 66 of the Social Insurance Law.

2. Monthly Pension Allowance

a) Cases of receiving monthly pension allowance shall be implemented in accordance with the provisions of Article 67 of the Social Insurance Law;

b) The amount of monthly pension allowance shall be implemented in accordance with the provisions of Article 68 of the Social Insurance Law.

3. One-time Pension Allowance

a) Cases of receiving one-time pension allowance shall be implemented in accordance with the provisions of Article 69 of the Social Insurance Law;

b) In cases where workers die and their dependents meet the conditions to receive monthly allowances but do not reside in Vietnam, they shall be granted one-time pension allowance;

c) The amount of one-time pension allowance shall be implemented in accordance with the provisions of Article 70 of the Social Insurance Law.

Article 11. Implementation of Social Insurance System Conversion for Individuals Receiving Pensions or Monthly Social Insurance Allowances Who No Longer Reside in Vietnam

1. Individuals who are receiving pensions or monthly social insurance allowances and no longer reside in Vietnam may authorize others to receive their pensions or social insurance allowances. If they wish, they may also be granted one-time allowance.

2. The amount of one-time allowance for workers specified in Clause 1 of this Article shall be implemented in accordance with the provisions of Clauses 2 and 3 of Article 65 of the Social Insurance Law.

Chapter III

SOCIAL INSURANCE FUND

Article 12. Contribution Rate and Method for Workers

1. From January 1, 2022, workers specified in Clause 1 of Article 2 of this Decree shall contribute 8% of their monthly salary into the retirement and funeral fund each month.

2. Workers who do not work and do not receive wages for 14 working days or more in a month shall not pay social insurance for that month. This period shall not be counted towards social insurance benefits, except in cases of maternity leave.

Article 13. Contribution Rate and Method for Employers

1. Employers specified in Clause 3 of Article 2 of this Decree shall contribute as follows on the monthly salary of workers subject to social insurance:

a) 3% into the sick leave and maternity fund;

b) 0.5% into the occupational accident and disease fund;

c) 14% into the retirement and funeral fund from January 1, 2022.

2. Employers are not required to pay social insurance for workers specified in Clause 2 of Article 12 of this Decree.

3. Based on the balance of the occupational accident and disease fund, the Government will consider adjusting the contribution rate specified in Point b Clause 1 of this Article from January 1, 2020.

4. Workers who enter into labor contracts with multiple employers and are subject to mandatory social insurance shall only make contributions for the first labor contract entered into. For participation in the occupational accident and disease fund, employers must contribute according to each labor contract entered into.

Article 14. Monthly Salary for Social Insurance Contributions

The monthly salary for social insurance contributions specified in Clause 1 of Article 12 and Clause 1 of Article 13 of this Decree shall be implemented in accordance with the provisions of Clause 2 and Clause 3 of Article 89 of the Social Insurance Law and Clause 2 and Clause 3 of Article 17 of Decision No. 115/2015/NĐ-CP.

Chapter IV

PROCEDURES FOR IMPLEMENTING SOCIAL INSURANCE

Article 15. Procedures for participating in and settling social insurance

1. The procedures for participating in social insurance and the procedures for settling social insurance benefits for workers as stipulated in Clause 1, Article 2 of this Decree shall be implemented according to the procedures applicable to Vietnamese workers and in accordance with Chapter VII of the Social Insurance Law; Articles 57, 58, 59, 60, 61, and 62 of the Labor Safety and Health Law; Article 5 of Decree No. 115/2015/ND-CP; Articles 9, 10, 13, 14, 17, 18, 21, 22, 25, and Article 26 of Decree No. 37/2016/ND-CP, except for the provisions set forth in Clause 3 of this Article and Article 16 of this Decree.

2. Documents for participating in and settling social insurance benefits for workers as stipulated in Clause 1 of this Article, if issued by foreign authorities, must be translated into Vietnamese and certified in accordance with Vietnamese law.

3. Settlement of one-time social insurance benefit

Within ten days from the date of termination of the labor contract or the expiration date of the work permit, professional certificate, or practice license (whichever occurs first), if the worker does not continue working under the labor contract or their work permit is not renewed, the worker may submit an application for one-time social insurance benefit in accordance with the prescribed procedures to the social insurance agency.

Within five working days from the date of receipt of all required documents, the social insurance agency shall be responsible for processing and disbursing the benefit to the worker; if the request is not granted, the agency must provide a written response stating the reasons.

Article 16. Procedures for converting the settlement of social insurance benefits for individuals receiving monthly pension or social insurance allowance who no longer reside in Vietnam

1. Individuals receiving monthly pension or social insurance allowance who no longer reside in Vietnam and wish to receive a one-time allowance shall submit a request to the social insurance agency.

2. Within five working days from the date of receipt of the request, the social insurance agency shall be responsible for processing the request for the individual; if the request is not granted, the agency must provide a written response stating the reasons.

Chapter V

IMPLEMENTING PROVISIONS

Article 17. Effective Date

1. This Decree takes effect from December 1, 2018.

2. The provisions set forth in Articles 9 and 10 of this Decree take effect from January 1, 2022.

3. In cases where there is a difference between the provisions of this Decree and international treaties to which the Socialist Republic of Vietnam is a party on the same issue, the provisions of the international treaty shall apply.

Article 18. Responsibilities for Implementation

1. The Minister of Labor, Invalids, and Social Affairs shall be responsible for organizing the implementation and supervising the enforcement of this Decree and coordinating with relevant ministries and sectors to propose negotiations and sign bilateral and multilateral agreements on social insurance.

2. The General Director of the Vietnam Social Security shall be responsible for reviewing and issuing models and forms for participation in and settlement of social insurance benefits for foreign workers in both Vietnamese and English languages.

3. The Minister of Health shall be responsible for reviewing and issuing models for discharge certificates, copies of medical records, sick leave certificates, maternity leave certificates, certificates of inability to care for newborns, and certificates of disability assessment for the purpose of settling social insurance benefits for workers as stipulated in Clause 1, Article 2 of this Decree.

2. The Ministers of National Defense, Public Security, and other ministers and sector heads shall be responsible for providing professional guidance and technical support to implement clinical pharmacy activities for medical examination and treatment facilities under their management authority.