Social Security

Vietnam | An update on social security in Vietnam

Summary

The Vietnamese government has introduced new laws to strengthen the social security framework, broadening coverage and clarifying participant obligations. The Law on Social Insurance (No. 41/2024/QH15) and the Law on Health Insurance (No. 51/2024/QH15) were issued in 2024 and took effect on 1 July 2025.  These changes impact how both Vietnamese and foreign employees contribute to social and health insurance in Vietnam.

The details

We have highlighted two key components of the new laws:

• Social Insurance (“SI”) Law – effective 1 July 2025, Vietnamese employees with labour contracts of at least one month are required to contribute to mandatory SI. Previously, only employees with labour contracts of 12 months or more were subject to this requirement.

Foreign employees with local labour contracts of 12 months or more will remain subject to SI contribution. The new SI Law removes the previous requirement for foreign employees to hold a valid work permit or practicing certificate.

• Health Insurance (“HI”) Law – effective 1 July 2025, compulsory HI contributions apply to Vietnamese employees with labour contracts of at least one month, and to foreign employees with local labour contract of at least 12 months. This represents a change from previous regulations, which required HI contributions for contracts of three months or more for both Vietnamese and foreign employees.

Key highlights 

Vietnam’s social security system comprises of SI, HI, and Unemployment Insurance (UI).

Under the new regulations, SI/HI contributions apply to foreign employees with local labour contracts of at least 12 months. Foreign employees without a local labour contract are not subject to SI/HI contributions (for example, foreign employees who are intra-company transferees, where they remain under an overseas employment contract while on secondment to Vietnam), remain exempt from SI and HI contributions.

UI contributions continue to apply only to Vietnamese employees.

How we can help

Vialto Partners would be pleased to assist you in meeting social security compliance in Vietnam and are happy to meet up/arrange a call with you to discuss how best we can assist you and your employees to stay compliant in Vietnam.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Brittany Chong
Partner

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