On November 29^th, 2018, Ho Chi Minh City Social Insurance issued official letter No. 2446/BHXH-QLT giving guidance on temporary social insurance which is mandatory for foreigners working in Vietnam, based on Decree No. 143/2018/ND-CP dated October 5^th, 2018, of the Law on Social Insurance.

Accordingly, Decree 143 shall apply to foreigners who are working in Vietnam with a legal work permit and a legal work license issued by competent Vietnamese authorities, with an indefinite term labour contract or a labour contract with a duration of more than one year.

Decree 143 shall not apply to employees who are foreign citizens, moving within enterprises such as managers, managing directors, specialists, and technical workers of foreign enterprises which have established a commercial presence in Vietnam, where the foreign worker temporarily resides within the territory of Vietnam for less than 12 months, having been recruited by the foreign enterprise.

It should also be noted that from December 1^st, 2018, the contribution level that employers shall make based on the monthly income of the employee including 3% to the sickness and maternity fund, and 0.5% to the labour accident and occupational disease insurance fund. From January 1^st, 2022, in addition to the sickness, maternity and labour accident fund, employers shall contribute 14% more to the pension fund. Employees shall be subject to the contribution of 8% to the pension fund on a monthly basis.

The base salary for calculation of the social insurance amount is regulated on Article No. 30, Circular No. 59/2015/TT-BLDTBXH dated December 29^th, 2015 issued by the Ministry of Labour, Invalids and Social Affairs.