Vietnam's Social Insurance (SI) system is a compulsory program that aims to provide essential social security to workers. This system protects employees from various risks, including sickness, maternity, occupational accidents, and retirement. It comprises multiple types of insurance, with contributions required from both employers and employees. Here’s an overview of the key components of Vietnam's Social Insurance:

Health Insurance (HI)

1. Objective:

   Health Insurance in Vietnam offers crucial healthcare benefits to employees, covering expenses related to medical visits, treatments, surgeries, and prescriptions.

2. Contributions:

   Employers: 3% of the employee’s monthly salary

   Employees: 1.5% of their salary

3. Benefits:

   The coverage includes outpatient and inpatient treatments, emergency care, surgeries, and prescription medications. Employees have access to public healthcare facilities and select private hospitals.

Social Insurance (SI)

1. Objective:

   Social Insurance aims to provide financial protection against risks associated with old age, illness, maternity, and workplace accidents. It includes various sub-categories:

   - Pension and Retirement: Offers pension benefits upon retirement or in cases of work-related disability.

   - Sickness and Maternity Benefits: Supports employees during illness or maternity leave.

   - Occupational Accident and Disease Insurance: Delivers benefits in the event of workplace injuries or occupational diseases.

2. Contributions:

   Employers: 17.5% (which encompasses 14% for pension/retirement and 3% for occupational accidents and diseases)

   Employees: 8% of their salary (applies to retirement and death insurance)

3. Benefits:

   Employees receive monthly pensions, sick leave compensation, maternity benefits (including six months of paid leave for new mothers), and financial support for work-related accidents or illnesses.

Unemployment Insurance (UI)

1. Objective:

   Unemployment Insurance offers financial assistance and vocational training for employees who are jobless.

2. Contributions:

   Employers: 1% of the employee’s salary

   Employees: 1% of their salary

3. Benefits:

   Unemployment benefits typically provide financial support equating to around 60% of the average monthly salary and vocational training allowances.

Total Contributions

In total, the mandatory contributions to Vietnam's social insurance system amount to:

   Employers: 21.5% of an employee’s salary

   Employees: 10.5% of their salary

Who is Covered?

All employees in Vietnam working under labor contracts exceeding one month must participate in the Social Insurance program. Additionally, foreign workers are also required to contribute to certain aspects of Social Insurance, such as health insurance and occupational accident coverage, unless alternative arrangements are made through bilateral agreements.

Vietnam’s Social Insurance program plays a vital role in the labor market, ensuring that both local and foreign employees are safeguarded against life's uncertainties.