COMPULSORY INSURANCE IN VIETNAM
In accordance with the Law on Social Insurance (SI), which went into force in early 2018, the employers and employees have to contribute compulsory insurance and trade union as follows:
TOTAL: 34% ON THE SALARY AND WAGES
1 - for the employer: 23,5%
2 - for the employee: 10,5%
The cap of the salary used as the basis for social insurance contribution is: 29.800.000VND. It means, in case the salary exceeds the cap, the maximum contribution amount will be: 34% x 29.800.000VND only.
Besides the compulsory insurance, you shall declare and pay PIT 20% on local incomes for non-resident expats and pay progressive tax rates from 5% to 35% depending on income levels for resident expats and local employees. The representative office only has to pay PIT.
Foreign workers in Vietnam with a work permit, or a practice certificate or license also going have to contribute health insurance and social insurance.
The basis for social insurance contribution will be broadened to include salaries, allowances and other supplementary amounts.
Source: https://bit.ly/2WPZOHj
VIVA BUSINESS CONSULTING
Hotline: +84-18-0012-43
Address: Floor 12, International Plaza Building, 343 Pham Ngu Lao Street, Pham Ngu Lao Ward, District 1, Ho Chi Minh City, Vietnam
Email: leads@vivabcs.com.vn
Website: https://vivabcs.com.vn
