[HCMC] Temporarily apply the compulsory social insurance to foreign labor from 01 December 2018

VNC is currently tracking the above issue. Current information VNC would like to provide is as follows for your further reference:

HCMC Social Insurance Dept has decided to request the “temporary” application of compulsory social insurance for employees who are foreign citizens, from 01/12/2018. From 01/12/2018, if there is foreign labor who is subject to the compulsory social insurance scheme, the company will pay an additional 3.5% on the social-insurance-based salary of that employee.

So, what the company needs to do will follow the sequence as:

(1) Determining whether the company has foreign labor who is subject to the compulsory social insurance scheme or not;

(2) Perform actions to comply with Official Letter No. 2446 / BHXH-QLT dated 29/11/2018 of Ho Chi Minh Social Insurance Dept (only VNese version attached). Note that if the enterprise has foreign labor, no matter they are subject to compulsory social insurance or not the company must still carry out some procedures as guided in this official letter.

*** Note: The way to identify foreign labor which is NOT subject to compulsory social insurance:

If the company has all the following supporting documents to prove that: Foreign labor internally reassigned in the enterprise (be the managers, chief executive officers, experts and technicians of a foreign enterprise which has established a commercial presence in Vietnam, is temporarily reassigned within the same enterprise to its commercial presence in Vietnam and have been employed by the foreign enterprise for at least 12 months).

Above information is for your reference.

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