Social insurance and trade union fee contribution in Vietnam

In Vietnam, an employer and its employees must together contribute 35.5% of the employee’s salary to the social insurance funds (32.5%) and trade union fund (3%). However, the employee’s salary used for calculating social insurance contribution is currently capped at about US$ 1,100/month (20 months of current minimum salary VND 1,210,000). The detail breakdown is as follows:

Type of insurance Social Insurance
(1)
Health Insurance
(2)
Unemployment Insurance
(3)
Trade Union Funding and Fees
Employer (%) 18 3 1 2
Employee (%) 8 1.5 1 1
Applicability Vietnamese employees under employment contracts with the term of 3 months or more Employees under employment contracts with the term of 3 months or more - Under the current regulations: Vietnamese employees under employment contracts with the term of 12 months or more
- From 1 January 2015: Vietnamese employees under employment contracts with the term of 3 months or more
- Trade Union funding must be paid by the employers to the trade union authority regardless of whether or not such employers have their own grass-roots trade unions
- Trade Union fee must be paid by employees being trade union members (to the grass-roots trade unions)

 

By Nguyễn Oanh on Dec 25, 2015 2:47:33 PM

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