With a history of 60 years from 1947, Vietnam social security system became the best among the legal systems and was comparable to that of western countries after continuous amendments. Vietnam social insurance includes three main parts: 1. Pension and Inheritance Insurance; 2. Maternity and Occupational Accident Benefits; 3. Medical Insurance. The paid-up total amount accounts for 23% of employee’s salary, among which company affords 17% and individuals afford 6%. The insurance is paid by the company on behalf of the employee and the amount should be deducted from employee’s salary. So the base fee is employee’s basic salary (excluding benefits, bonus and extra work allowance…). The insurance base fee of the employees in most of the production factories is calculated based on the minimum basic salary. According to the Vietnam Social Security Law issued in 2007, the ratio of employee’s paid-up amount will be increased by 1% every two years from 2010 until reaches 8%. The unemployment social insurance tax will be taxed from 1 Jan, 2009, and is paid at the rate of 1% separately by enterprise and employee. So the highest social insurance for foreign co. in Vietnam is 18% and individual is 9%. But the foreign employees can exempt from this kind of tax.
A part of foreign investors who invested in earlier days eager to gain profit by setting up factories, totally ignoring the Vietnam Labor Law and Social Security Law or with little enthusiasm to obey the law (pay less or not pay on time). It always causes some disturbances and strikes, once reported by the media, severe punishment from the government will follow. Foreign investors will meet even more problems under such unfamiliar environment. Therefore, foreign investors should strictly obey the law while doing business in Vietnam in order to avoid problems and troubles.
- Amount: VND
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Item Area |
Hanoi/ Ho Chi Minh | Haiphong/ Ha Lon Bien Hoa/ Longqing |
Zayein/ Lung Shing Yongjiu/ Trang Bang |
Da Nang/ Lam Dong LongAn/ Tay Ninh |
Sinyuan/ Vung Tau |
Other Cities |
|
| District | County | ||||||
| Minimal Base Fee | 1,000,000 | 900,000 | 900,000 | 900,000 | 900,000 | 900,000 | 800,000 |
| Co. Min. Paid (18%) | 170,000 | 153,000 | 153,000 | 153,000 | 153,000 | 153,000 | 136,000 |
| Person Min. Paid (7%) | 60,000 | 54,000 | 54,000 | 54,000 | 54,000 | 54,000 | 48,000 |
| Occupational Accident and Disease Insurance |
Subsidies can be got for sick leave, occupational disease leave and accident leave( no days limitation) Injury for 5%, 5 months’ allowances based on the minimum salary can be enjoyed; once increased by 1%, 0.5 months’ allowances will be increased accordingly |
Everyday’s allowances at home= minimum salary(800,000)×25% Everyday’s allowances in hospital= |
Medical expenses and salary during this period should be paid by the enterprise |
| Pension | 60 years old for male, 55 for female, pensions will be enjoyed after 15-20 years’ payment | You can get allowances for 1.5 months after one year’s insurance payment, the calculated base is average insurance amount | Paid by the VSS |
| Unemployment Insurance |
Employees are able to take the training for 6 months arranged by social organization The organization should provide employees job opportunities free of charge |
Subsidies are 60% of the insured amount per month(standard: 3 months’ subsidies for 12-36 months’ payment; 6 months’ subsidies for 36-72 months’ payment; 9 months’ subsidies for 72-144 months’ payment; 12 months’ subsidies for 144 months’ payment) | Unemployment insurance should be paid from 1st Jan., 2009 |
| Medical Insurance |
You can enjoy the medical treatment without paying social insurance after retirement Medical treatment can also be enjoyed for occupational accident and disease leave and unemployment |
Submit 3% of medical insurance to Social Security Bureau every quarter, actually 1%, the reserved 2% are used to pay sick leave insurance and maternity insurance for the employees | New law will be carried out on Jan.1, 2009, so present regulations is still suitable. |
| Maternity Insurance |
Pregnancy examinations: 5 times, once a day Miscarriage , abortion leave: 10 days leave for the baby under 1 month; 20 days for the baby under 1-3 months, additional 20 days for 3-6 months; additional 50 days for over 6 months |
Allowances=the latest insurance amount÷26*100%*vacation days with salary | Paid by the VSS |
| Vacation Benefits |
Sick leave with salary, 30 days every year (less than 15 years’ payment) Leave for care for the child (child is less than 3 years old, 20 days’ leave a year; between 3-7 years old , 15 days’ leave a year) |
Allowances=the latest insurance amount÷26*75%*vacation days with salary | Paid by the VSS |
Location and time for tax declaration: The Vietnam Social Insurance Authority is VSS. Taxes are applied to pay by quarter, and it can not be delayed till the date of 5 in the first month of the next quarter. All the employees’ name list should be submitted every November, and then employees’ medical insurance should be registered.
Necessary documents: a. Registration certificate (1 duplicate) b. Social insurance application form No.C2-SBH/C47BH/C470-BH (2 pcs.) c. Name list of proposal (3 pcs.) d. Salary list (3 pcs.) e. Labor contract (1 duplicate). Social insurance form No. C2-SBH/C47BH/C70-BH (2 pcs.) should be submitted for any changes.