Eligibility and Benefits
Find out who is eligible for social insurance in Vietnam and the benefits available...
Compulsory social insurance is paid by all Vietnamese employees and their employers. It is used to fund sickness pay, maternity benefits, occupational disease and accident payments, retirement and survivor pensions. Additional voluntary social insurance is also available, and payment into one of these schemes increases the amount of retirement or survivor pension payable.
This policy covers the sickness of both the employee and time taken off work to care for a sick child under the age of seven. Vietnamese employees who have paid into the Social Insurance Fund for less than 15 years are entitled to take a maximum of 30 days sick leave per year, increasing to 60 days after 30 years of payment.
The maximum period of consecutive leave for employees working on an indefinite-term contract is 12 months. For those employed under a definite-term contract of between 12 and 36 months, the maximum is six months and for those with a contract of less than 12 months the maximum time allowed is half of the contracted time. An employer may terminate the employment contract if the period of sick leave exceeds these limits.
The employer is not obliged to pay the employee during the duration of the sick leave, although they may be eligible for an allowance from the Social Insurance Fund. The rate of this allowance would depend on the amount of time taken off work and the length of time that contributions have been made.
All female employees are entitled to six months maternity leave, which is subsidised by their social insurance. In the case of multiple births, there is an extra 30 days leave entitlement for each additional child. Women may also take leave for up to five prenatal checks-up, and are entitled to 100 percent of their average salary for the six months preceding the start of the maternity leave.
A lump sum payment of the equivalent of two months’ national minimum salary per child is payable upon birth.
Once the mother has returned to work she is also entitled to 60 minutes off during each working day to take care of the baby until it is 12 months old.
Male employees whose partner gives birth are entitled to three days leave.
The current retirement age in Vietnam is 60 for men and 55 for women, although this is currently under review. With the state pension scheme a small percentage of the employee’s salary is paid to the Social Insurance Agency (SIA) each month. On retirement, the employee can either choose to receive a lump sum payment of the money that they have accrued or, if they have contributed into the Social Insurance Fund for over 20 years, they can choose to receive a life-time pension instead.