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Ministry drafts Decree on compulsory social insurance for foreign workers in VN

VGP – The Ministry of Labor, Invalids and Social Affairs (MOLISA) is drafting a Decree to guide the implementation of the Law on Social Insurance on compulsory social insurance for foreign workers in Viet Nam.

April 18, 2017 4:48 PM GMT+7

Illustration photo

Clause 2, Article 2 of the Law on Social Insurance (2014) stipulates that employees who are foreign citizens working in Viet Nam with work permits or practice certificates or practice licenses granted by competent Vietnamese agencies shall be covered by compulsory social insurance under the Government’s regulations.

According to the statistics of the MOLISA, the number of foreign laborers in Viet Nam increased from 63,557 in 2011 to 83,046 in 2016. The proportion of foreigners working in Viet Nam under one year only accounts for 4.4%, which manifests the demand and sustainability of foreign workers in Viet Nam.

Besides, the number of Overseas Vietnamese working abroad tends to increase. Based on the regulations in some nations, the application of social insurance on foreigners working in Viet Nam will create an opportunity for Overseas Vietnamese to get access to social insurance types of the nations they are working in.

The numbers of foreign laborers to Viet Nam and Vietnamese working abroad are expected to sharply rise thanks to the implementation of Free Trade Agreements, regional integration, economic development, urbanization, climate change and free movement of labor between the ASEAN nations.

To ensure rights for foreigners working in Viet Nam and realization of equal treatment, the MOLISA has proposed that foreign laborers in Viet Nam joining compulsory social insurance will enjoy benefits from five insurance types, including sickness, maternity, labor accidents - occupational diseases, retirement and death.

By Thuy Dung