Policies on social insurance, health insurance and education coming into force from December 01, 2018

1. Foreign workers are required to pay 8% of compulsory social insurance premium from 2022

According to the Decree, any foreign worker working in Vietnam shall become a mandatory participant in social insurance if he/she is granted a work permit or practicing certificate or practicing license by a Vietnamese authority and enters into a indefinite-term labor contract or fixed-term labor contract with an employer in Vietnam

Regarding contribution rates:

- An employee shall contribute 8% of monthly salary to the retirement and survivorship allowance fund (from December 01, 2018);

- Amount payable by employers:

+ From December 01, 2018: 3% of monthly salary payroll for insurance premium payment to the sickness and maternity fund and 0.5% to the occupational accident and occupational disease fund.

+ From January 01, 2022: 14% of monthly salary to the retirement and survivorship allowance fund.

2. More mandatory participants in health insurance from December 01, 2018

According to the Decree, below are some mandatory participants in health insurance:

- Group of family-based health insurance policyholders including dignitaries, sub-dignitaries, clergy and people residing in social relief establishments (not in other groups of health insurance policyholders);

- Group of health insurance policyholders whose contributions are paid by employers including relatives of public national defense workers and employees on active service in the military and relatives of public security workers on active service in the People's Police and other workers serving other essential organizations.

Persons aged 80 years old or older who are entitled to monthly benefits for elderly people previously included in the group of health insurance policyholders whose contributions are paid by employees will have their health insurance contributions supported by state budget according to Decree No.146.  

3. More students eligible for exemption from tuition fees from academic year 2018-2019

This is a remarkable content of Decree No.145/2018/ND-CP on amendments to Decree No.86/2015/ND-CP.

In addition to 15 cases specified in current regulations, from academic year 2018-2019 (September 01, 2018) children aged 5 entering kindergarten shall be entitled to exemption from tuition fees if they reside in areas with seriously poor conditions for socio-economic development whose parents or father or mother or guardian permanently reside in seriously poor towns, ethnic minority areas, mountainous areas and islands.

Parents or guardians of 5-year-old children shall make an application form for tuition fee exemption according to the form provided in Appendix I and II issued together with the Decree to enjoy benefits from tuition fee exemption policy.

4. New standards and requirements applied to car driving instructors

Decree No.138/2018/ND-CP amends Decree No.65/2016/ND-CP on requirements for provision of driver training and driving testing services.

According to the Decree, the driver training institution must have at least 1 driving instructor each 1 car for learner driver (not previously specified).

Such driver training institution must have teacher staff that satisfy the following requirements:

- General standards: Driving instructors must meet standards applied for primary-level teachers as regulated;

- Teachers for driving lessons must obtain an intermediate profession education diploma or higher in law, car technology, car manufacture or other fields in which car lessons account for 30% of the whole training program or higher;

- Driving instructors must:

+ Have a driver’s license at the same level or higher compared to that of driving training program but not lower than B2 level;

+ Be trained in professional skills for driving instruction according to the training program issued by the competent authority and granted a certificate of driving instructor according to the form regulated.

More details can be found in Decree No.138/2018/ND-CP dated October 08, 2018.

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