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Labour Law

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Social, Health and Unemployment Insurance Contributions effective from 01 Jan 2018

 

Social insurance (“SI”) and Unemployment insurance (“UI”) contributions are applicable to Vietnamese individuals only. Health insurance (“HI”) contributions are required for Vietnamese and foreign individuals that are employed under Vietnam labour contracts.

 

SI/HI/UI contribution rates are as follows:

 

 

SI

HI

UI

Total

Employee

8%

1.5%

1%

10.5%

Employer

17.5%

3%

1%

21.5%

 

The income subject to SI/HI/UI contributions is the salary including allowances according to labour laws , but this is capped at 20 times the minimum salary for SI/HI contributions and 20 times the minimum regional salary for UI contributions (Effective from 01 July 2018, the minimum salary is increased from VND1,300,000/month to VND1,390,000/month and the minimum regional salary varies from VND2,760,000 to VND3,980,000 depending on each region - these minimum salaries are subject to change during the year).

The statutory employer contributions do not constitute a taxable benefit to the employee. The employee contributions are deductible for PIT purposes.

 

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