VCCI Programme on Law Dissemination for Employers in Vietnam Business Community

 

Monthly salary subject to social insurance of insured workers as per payroll regime decided by employers is specified follows:

 

1. From January 1, 2016 to December 31, 2017, the monthly salary subject to social insurance is the salary and salary allowance provided for by the labour law and specified in the employment contract.

 

2. From January 1, 2018 onwards, the monthly salary subject to social insurance is the salary, salary allowance and other additional amounts provided for by the labour law and specified in the employment contract.

 

3. Monthly salary subject to social insurance of salary-paid enterprise executive is the salary paid by such enterprise except for the case that the executive works in a State-owned sole-member limited enterprise.

 

Monthly salary subject to social insurance for salary-paid cooperative executive is the salary decided by the Council of Members.

 

Suspension of compulsory social insurance is specified as follows:

 

1. Cases of temporary cessation of payment to retirement and death allowance fund:

 

a) Suspension of production and business from 01 months, difficulty due to structural change, technological or crisis, recession or implementation of the State policy to restructure the economy or implementation of international commitments;

 

b) Having difficulty arising from natural disasters, fires, epidemics and crop failure.

 

2. Conditions for temporary cessation of payment to retirement and death allowance fund:

 

Employer is defined to belong to one of the cases specified in Clause 1 of this Article will have their payment to retirement and death allowance fund temporarily halted in one of the following conditions:

 

a) Fail to arrange jobs for employees, with lay-offs comprising 50 percent onwards of insured workers, before suspending production and business operations.

 

b) Suffer damage worth over 50 percent of assets owing to natural disasters, fires, epidemics and crop failures (excluding land value).

 

3. Duration for temporary cessation of payment to retirement and death allowance fund:

 

a) The time for temporary cessation of monthly payment to retirement and death allowance fund is no more than 12 months. During the time of temporary cessation of payment to retirement and death allowance fund, employer shall still pay for sickness and maternity fund, workplace accident fund and occupational disease fund.

Employers and employees eligible for retirement regime and death allowance for termination of the labour contract shall pay in compensation for the time of temporary suspension to settle the rights and obligations of employees during the time of temporary suspension.

 

b) When the duration of temporary cessation of payment is over, employers and the employees shall continue to pay social insurance and pay in contribution of the suspended period, with the payment free from overdue interest, as specified in the Clause 3 of Article 122 on handling violations of law on social insurance of the Social Insurance Law.