Vietnam | Social Security | Social Insurance (“SI”) claim for foreigners


August 9, 2024

Social Security

Vietnam | Social Insurance (“SI”) claim for foreigners

Summary

Effective from December 2018, foreign employees working in Vietnam who qualifies under certain conditions became subject to the compulsory SI contribution scheme in Vietnam.

Subsequently, there were several documents, issued by the Vietnam Social Insurance Agency (“SIA”), to guide the implementation of the new SI Law, in which, one-off SI contribution claim is of particular interest to expatriate employees.

The detail

SI contributions are required for foreign individuals who meet all the following conditions:

  • working in Vietnam under a work permit, practicing certificate or practicing license granted by a competent authority of Vietnam;
  • employed under a Vietnam labor contract with an indefinite term or a definite term of one year or more;
  • under 60 years of age for men and 55 years of age for women and
  • not an intra-corporate transferee.

Upon the termination of Vietnam employment contract or expiration of the foreign employee’s work permit, the foreign employee can claim a one-off payment on the contributed amount from the SIA. The claim procedures are similar to that of a Vietnamese employee.

Generally, for an expatriate employee, the following procedures would apply.

Step 1 – Prepare and compile the required documents. Documents such as original SI book, application form (Form 14-HSB), employment termination letter, document proving cancellation of temporary resident card, departure flight ticket, copies of passport etc. are some supporting documents required for the claim.

Step 2 – Submit the documents to SIA.

Step 3 – SIA review and process the claim. The review and approval process takes 5 business days. But this could be longer if additional documents are required by SIA.  Once approval is obtained, SIA will process the benefit claim. In practice, the total processing time for step 3 generally takes 10 business days. If an application is rejected, SIA will provide a written response stating the basis of rejection.

Contact us

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

Brittany Chong
Partner

Further information on Vialto Partners can be found here: www.vialtopartners.com

Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

©2024 Vialto Partners. All Rights Reserved.