Vietnam: New Guidance on Social and Unemployment Insurance Contributions

Social Insurance Contribution

The new legislation states that the employer contribution to social insurance will decrease by 0.5% from July 1, 2021, to June 30, 2022.  This means that for these dates, the rates are:

• 17% for Vietnamese employees
• 3% for foreign staff

Employers will provide the monetary support obtained from the reduction to the Insurance Fund for Occupational Accidents and Diseases to combat the costs of the Covid-19 pandemic.

Unemployment Insurance Contribution

Employees affected by the COVID-19 pandemic shall receive support in cash from the Unemployment Insurance Fund’s surplus balance. The supporting amount shall be based on the unemployment insurance premium payment period during which the employee has not yet received any unemployment allowance.

Employees eligible for this support include those who pay unemployment insurance premiums as of September 30, 2021 (excluding some subjects), who have stopped paying unemployment insurance premiums due to the termination of labor contracts, or working contracts covering January 1, 2020, to the end of September 30, 2021. The unemployment insurance premium payment period is reserved as per the law, excluding persons receiving monthly pensions.

If the unemployment insurance premium payment period is

• is less than 12 months – the employee is entitled to VND 1,800,000
• between full 12 months and less than 60 months – the employee is entitled to VND 2,100,000
• between full 60 months and less than 84 months- the employee is entitled to VND 2,400,000
• between full 84 months and less than 108 months – the employee is entitled to VND 2,650,000
• between full 108 months and less than 132 months – the employee is entitled to VND 2,900,000
• 132 months or more – the employee is entitled to VND 3,300,000.

Employers paying unemployment insurance premiums before 1 October 2021 as prescribed are allowed to reduce the contribution rate from 1% to 0% of the monthly wage fund of the employees obliged to participate in unemployment insurance.