Mandatory Benefits for Employees
Vietnam's social security scheme, also known as mandatory benefits applied for employees working in Vietnam includes three categories: social insurance, health insurance and unemployment insurance This scheme applies to all domestic and foreign companies operating in Vietnam that employ workers under the labor contracts with a definite term of over three months and for labor contracts with indefinite terms. Contributions to social security are based on the employees' monthly salary or wage stated in the labor contract and is capped at 20 times the legal standard minimum salary regulated by the government in cases wherein the salary is equivalent or higher than 20 times of minimum salary. The minimum salary for government and state-owned company employees has been increased to VND730,000 from VND650,000 starting May 1, 2010.
To read the full version of this article, please purchase the April 2010 issue of Vietnam Briefing, which can be found in the Asia Briefing Bookstore. Companies requiring assistance may e-mail Dezan Shira & Associates at vietnam@dezshira.com for advice or visit www.dezshira.com.
