Whether you’re a seasoned employer or just starting out, understanding SHUI requirements is essential to keep your business compliant, and your employees protected.

We’ve put together this handy FAQ to answer your most common questions about mandatory SHUI contributions, exemptions, recent policy updates, and practical tips to stay on track.

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   Who is required to participate in mandatory Social, Health, and Unemployment Insurance (SHUI) in Vietnam?

All employees working under labor contracts of one month or longer in Vietnam are required to participate in compulsory SHUI. This includes Vietnamese citizens and certain foreign employees holding valid work permits or visas.

2. Are employees on short-term contracts required to pay SHUI?

Employees with labor contracts of less than one month are generally exempt from mandatory SHUI contributions. Employers are not obligated to register or pay SHUI for these short-term contract workers.

3. What happens if an employee’s labor contract ends or their work permit expires?

When a labor contract is terminated or a foreign employee’s work permit expires without renewal, SHUI contributions must stop. Employees may be eligible for one-time social insurance benefits or other allowances depending on their contribution history.

4. Are there any recent changes to SHUI policies that employers should be aware of?

Yes, starting July 1, 2025, Vietnam’s amended Social Insurance Law introduces changes such as:

• Restrictions on lump-sum social insurance withdrawals to encourage long-term participation.
• Expanded social pension schemes and state-funded health insurance benefits for eligible groups.
• Simplified administrative procedures and enhanced electronic transactions for social insurance.

Employers should stay updated to ensure compliance and maximize benefits for their employees.

5. How can employers ensure compliance with SHUI regulations?

• Register all eligible employees for SHUI promptly.
• Calculate contributions based on actual salaries, respecting minimum and maximum salary thresholds.
• Keep clear records of contracts, work permits, and contribution payments.
• Seek professional HR and payroll support to navigate complex regulations and updates.

Still having questions but cannot find legit sources or professions to answer?

Contact NetViet for professional HR and payroll services to navigate Vietnam’s labor laws smoothly.

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