Mandatory social insurance for expat workers creates burden on enterprisesBy Thuy Dung Foreign workers are seen at a construction site in Vietnam - PHOTO: TL HANOI – Compulsory social insurance for foreigners working in Vietnam is creating a heavy burden on local enterprises, according to a report by the Investment and Trade Working Group of the Vietnam Business Forum. The group regards the payment of social insurance for expat workers in Vietnam as a kind of tax, noting that Vietnam thereby has the highest taxes in the region in terms of quantity, rates and large-scale application. The report also shows that the draft government decree on compulsory social insurance does not adjust the rule of an accumulating period of social insurance payment. For example, if a foreign worker has paid social insurance for five years in Thailand, and another five years in Singapore before coming to work in Vietnam, such periods are still not accumulated for the expat into Vietnam's … [Read more...] about Mandatory social insurance for expat workers creates burden on enterprises
Social insurance tax
Compulsory social insurance for expats to go ahead despite firms’ concerns
Viet Nam News Thu Hà – Mai Hiên HÀ NỘI — A controversial rule requiring foreign workers in Việt Nam to make social insurance payments is likely to be put into practice soon, several months after the Government’s issuance of a decree to implement the new provision of the Law on Social Insurance 2014, which came into effect on January 1 this year. The chorus of varied and strong opinions from the business community and related ministries and sectors has delayed the issuance. However, Trần HảiNam, deputy head of the Department for Social Insurance under the Ministry of Labour, Invalids and Social Affairs (MoLISA), said a draft decree had been sent to the Government, after getting the nod from the National Assembly Standing Committee in mid-March. Nam said the draft is expected to be ratified in about a month. The draft decree is expected to narrow the number of foreigners affected by the compulsory social insurance … [Read more...] about Compulsory social insurance for expats to go ahead despite firms’ concerns
EuroCham voices concern over new social insurance rule – EuroCham voices concern over new social insurance rule
EuroCham voices concern over new social insurance rule Thuy Dung HANOI â Foreign nationals working in Vietnam will be subject to a new statutory social insurance regulation early next year, something which has sparked concern among European enterprises in the country. European firms said this rule may lead to the double taxation of social insurance for non-Vietnamese employees. In accordance with the Law on Social Insurance, which went into force early last year but will not cover foreign nationals working in Vietnam until early 2018, foreign workers in Vietnam with a work permit, or a practice certificate or license will have to contribute social insurance. But there are no specific guidelines for none-Vietnamese employees such as those signing a labor contract with a legal entity in Vietnam or being assigned to work in Vietnam on an assignment as well as for benefit entitlement for cases where foreign nationals terminate their assignment and go back to their home countries. … [Read more...] about EuroCham voices concern over new social insurance rule – EuroCham voices concern over new social insurance rule
EuroCham voices concern over new social insurance rule
In accordance with the Law on Social Insurance, which went into force early last year but will not cover foreign nationals working in Vietnam until early 2018, foreign workers in Vietnam with a work permit, or a practice certificate or license will have to contribute social insurance. But there are no specific guidelines for none-Vietnamese employees such as those signing a labor contract with a legal entity in Vietnam or being assigned to work in Vietnam on an assignment as well as for benefit entitlement for cases where foreign nationals terminate their assignment and go back to their home countries. “More comprehensive regulation would be recommended,” the European Chamber of Commerce in Vietnam (EuroCham) said. In practice, a certain number of foreign nationals who come to Vietnam for an assignment still maintain social security in their home countries or enter a voluntary healthcare program. For such cases, statutory social and health insurance will result in … [Read more...] about EuroCham voices concern over new social insurance rule
Social Headlines December 19
Disabled people benefit from German project More than 2,000 people with disabilities and their families in the central province of Quang Tri have profited from a German-funded rehabilitation project over the past 13 years. The figure was announced at a meeting to review the implementation of the community-based project (from January 2001 to December 2013) on December 16 and 17. Financed by the German Caritas Association, it has taught physical therapy to local medical staff and families of disabled people in Cam Lo and Gio Linh districts and Dong Ha city. So far, 55 training courses have been offered with the participation of 3,568 people. The project has also loaned over 3.6 billion VND (171,400 USD) to 1,087 households with disabled people to improve their livelihoods. At the meeting, participants shared their opinions on how to enhance the project’s effectiveness and sustainability, such as raising the credit fund and loan term, increasing training and the number of local … [Read more...] about Social Headlines December 19