Foreigners working in Vietnam on a fixed-term labour contract of 12 months or more must join compulsory social insurance under the 2024 Social Insurance Law (in force since 1 July 2025). They also pay health insurance and personal income tax (PIT): 5–35% progressive rates for tax residents, or a flat 20% for non-residents. From the 2026 tax period, the personal deduction is VND 15.5 million a month, plus VND 6.2 million a month for each dependant. Info Travel advises on these obligations and handles the work permit and residence card paperwork that goes with them. Message us on WhatsApp +84327828822.
Which foreign employees must pay social insurance?
Article 2(2) of Social Insurance Law No. 41/2024/QH15 covers foreign nationals who work in Vietnam for an employer in Vietnam on a fixed-term labour contract of at least 12 months. To work legally at all, the employee first needs a work permit or a confirmation of exemption.
The law excludes three groups:
- Intra-company transferees, as defined in the rules on foreign workers in Vietnam;
- Employees who had already reached retirement age when the contract was signed;
- Cases where an international treaty Vietnam has joined says otherwise, such as a bilateral social security agreement.
Decree 158/2025/ND-CP sets out the detailed rules for compulsory social insurance. Employers should check unusual cases with their local social insurance office.
Social and health insurance contribution rates
Foreign employees covered by the scheme contribute at broadly the same rates as Vietnamese staff, calculated on the salary used for social insurance:
| Fund | Employer | Employee |
|---|---|---|
| Retirement and survivorship | 14% | 8% |
| Sickness and maternity | 3% | – |
| Occupational accident and disease | usually 0.5% | – |
| Health insurance | 3% | 1.5% |
| Total | about 20.5% | 9.5% |
The contribution salary is capped at 20 times the reference level. Ho Chi Minh City Social Insurance puts the reference level at VND 2,530,000 a month from 1 July 2026, which makes the cap VND 50,600,000 a month. Salary above the cap does not attract social or health insurance contributions.
Unemployment insurance: The 2025 Employment Law (in force since 1 January 2026) defines an employee as a Vietnamese citizen. Foreign employees are therefore generally outside the unemployment insurance scheme. Confirm any special case with the social insurance office.
Tax residency and the 183-day rule
Under PIT Law No. 109/2025/QH15, a foreigner is a tax resident if either of these applies:
- They are in Vietnam for 183 days or more in a calendar year, or in 12 consecutive months from their first day in Vietnam;
- They have a regular place of residence in Vietnam, such as a registered permanent address or a home rented under a fixed-term lease.
Everyone else is a non-resident. Days in Vietnam are usually counted from the entry and exit stamps in the passport, so keep your passport, visas, temporary residence card and lease in order.
PIT rates on employment income in 2026
The new PIT Law’s rules on residents’ employment income apply from the 2026 tax period. The progressive scale now has five brackets:
| Bracket | Monthly taxable income (VND million) | Rate |
|---|---|---|
| 1 | Up to 10 | 5% |
| 2 | Over 10 to 30 | 10% |
| 3 | Over 30 to 60 | 20% |
| 4 | Over 60 to 100 | 30% |
| 5 | Over 100 | 35% |
Taxable income is assessable income minus the family deductions, the employee’s compulsory social and health insurance contributions, and any other deductions the law allows.
- Personal deduction: VND 15.5 million a month (VND 186 million a year).
- Dependant deduction: VND 6.2 million a month per dependant. Dependants include minor children, a spouse unable to work, and elderly parents with no or low income. Only one taxpayer can claim each dependant.
To register dependants, foreigners usually need documents proving the relationship, such as birth or marriage certificates. Depending on what the tax office asks for, these may need consular legalisation and a notarised translation.
Non-residents pay a flat 20% on all employment income for work done in Vietnam, wherever it is paid, and get no family deductions.
Tax code, finalisation and refunds before you leave
Foreign employees need a personal tax code so that the employer can withhold tax each month and register dependants. The paying employer normally registers it for the employee.
Tax residents must finalise PIT each year. They can authorise their employer to do it, or file themselves, which is required if they have income from more than one source. Under the current tax administration rules, a foreigner whose employment in Vietnam ends should finalise their tax before leaving the country. If more tax was withheld than was due, they can ask for a refund or an offset.
This step matters because unpaid tax is one of the grounds for an exit ban. Settle your tax position before you book the flight out. See also our guide to exit procedures for foreigners.
How insurance and tax link to your work permit and residence card
- Work permit (Decree 219/2025/ND-CP): this is what makes the labour contract lawful, and the contract is what triggers social and health insurance and tax withholding. Our 2026 work permit rules guide explains the process.
- LD temporary residence card: issued on the basis of a valid work permit, and it cannot outlast the permit. State fees are USD 145 for up to 2 years, USD 155 for over 2 and up to 5 years, and USD 165 for over 5 and up to 10 years.
- Renewals: when a permit is renewed or reissued, check that the contract, insurance salary and tax records still match.
- Leaving the job: the employer deregisters the employee from social insurance, the work permit is revoked, tax is finalised, and the residence card is dealt with.
The 2024 Social Insurance Law and its guiding decrees set the conditions for a lump-sum social insurance payout when a foreign employee leaves Vietnam. Confirm them with the social insurance office before you apply.
How Info Travel can help
Info Travel specialises in immigration and foreign employment. We help companies and individuals with:
- Advice on who must join social and health insurance, and on the exclusions for intra-company transferees, employees past retirement age and treaty cases;
- Work permits, exemption confirmations, residence cards and visa extensions, with validity matched to the labour contract;
- Preparing, legalising and translating documents for dependants;
- Tax filings, finalisation, refunds and insurance registration, which we coordinate with partner accounting and tax firms.
Fees are quoted for each case. Contact us on WhatsApp +84327828822 for advice.
FAQ
Do I pay social insurance on a 6-month contract?
Under Article 2(2) of the 2024 Social Insurance Law, foreigners must join when their fixed-term contract runs 12 months or more, so a contract under 12 months falls outside that rule. Health insurance and PIT still need to be checked separately.
I am in Vietnam for less than 183 days. Do I still pay tax?
Yes. As a non-resident, you pay a flat 20% on employment income for work done in Vietnam, with no family deductions, unless a double tax agreement provides otherwise.
Can I leave Vietnam before finalising my tax?
If you owe tax, you can be barred from leaving under the tax administration rules. Finalise and pay what you owe before departure. Our exit ban guide explains the process.
I am past retirement age. Do I pay social insurance?
No, not if you had already reached retirement age when you signed the labour contract. Health insurance and PIT are assessed separately.
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