Increase in pension in Vietnam from July 2023

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On June 29, 2023, the Vietnamese Government officially issued Decree No. 42/2023/NĐ-CP on pension adjustment policies after a period of discussion, feedback, and revision. Accordingly, starting from July 2023, Vietnamese citizens who have participated in social insurance and receive pensions within the scope regulated by Decree No. 42 will see an increase in their pensions….

Proposal to extend the deadline for submitting unemployment benefit applications in Vietnam

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According to the current laws of Vietnam, employees have a period of 3 months after resigning from their jobs to submit applications for unemployment benefits. However, due to various reasons, many employees are unable to submit the required documents within this timeframe. Recognizing this drawback, several representative groups of employees have proposed to extend the…

Eliminate the provision that trained employees must have a higher social insurance contribution rate than untrained employees in Vietnam

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Vietnam’s social insurance has recently issued Decision 948/QD-BHXH to repeal sections a and b, point 2.6, Article 2 of Decision 595/QD-BHXH to align with Decree 38/2022/ND-CP. Accordingly, the provision that trained employees must have a higher social insurance contribution rate of at least 7% compared to untrained employees in Vietnam has been officially abolished. Article…

Regulations in Vietnamese law regarding overtime wages for night work

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When a worker works overtime at night, according to the labour law in Vietnam, how much wage do they receive? If the overtime is on a weekend, does the wage change? Work at night Clause 2, Article 98 of the Labor Code 2019 stipulates that workers who work at night must receive an additional payment…

(Vietnam) Voluntary social insurance is less attractive compared to compulsory social insurance – Not only because of the higher contribution rate

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Voluntary social insurance, compared to compulsory social insurance, is somewhat less attractive in terms of attracting participants. The fundamental reason identified in society is that individuals participating in voluntary social insurance have to pay higher insurance contributions than those participating in compulsory social insurance. However, is it really that simple when delving deeper into the…

Proposing to reduce the conditions from 80 to 75 years old for senior citizens in Vietnam to enjoy social pension benefits

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The latest revised draft of the Law on Social Insurance has a proposal to reduce the conditions for senior citizens in Vietnam to enjoy social pension benefits from 80 years old to 75 years old. Accordingly, if applied, what changes will this regulation create for Vietnam’s social insurance system and social security policy? Currently, senior…

Is it legal for a Vietnamese manufacturing company to arbitrarily use the employee’s leave?

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In most manufacturing companies in Vietnam today with thousands or even tens of thousands of employees, they often make the most of employees’ leave days for corporate activities or unexpected incidents like the Covid-19 pandemic, mass power cuts, etc. So, what exactly is this behavior and does it violate the law? For example, a new…

Analysis of the nature of social insurance payments in Vietnam

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When Vietnamese employees work under labor contracts for full 1 month or more, they will be subject to compulsory social insurance participation according to the provisions of Clauses 1 and 2, Article 2 of the Law on Social Insurance 2014. However, despite paying monthly, most Vietnamese workers are still not completely sure how that contribution…

Does an employer fire an employee in Vietnam need advance notice?

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When an employee unilaterally terminates a labor contract in Vietnam by legally resigning, he or she must notify the employer at least 3 to 45 days in advance, or depending on the company’s labor rules or regulations of the Government if they are working in the State sector. Conversely, if the employer dismisses the employee…

Differences in pension calculation method between private and state-owned enterprises in Vietnam

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Currently, the method of calculating pension between employees working in the private sector and employees working in the state in Vietnam still has fundamental differences, leading to many discontented opinions about the pension calculation scheme. In the following article, ASL LAW will analyze the difference in pension calculation method and give a perspective on this…

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