Regulation update for Vietnam

Regulation update for Vietnam

Updated regulations for statutory insurance and payroll calculation in Vietnam

From 1st July there will be a change in the base salary/wages for employees in Vietnam.

The Vietnamese Government issued Decree No. 24/2023/ND-CP was issued on 14th May 2023, which stated that the monthly base salary would increase from its current level of VND1,490,000 to VND1,800,000. This further means that the maximum salary for compulsory Social Insurance (“SI”) & Health insurance (“HI”) contribution (equivalent to 20 times of base salary) will increase from VND29,800,000 to VND36,000,000.

The Social Insurance Agency in Ho Chi Minh City has issued information on the implementation of SHUI processing, SI book and HI card management.

This official letter has been issued in accordance with Decision No 490/QD-BHXH and relates to the processing of SHUI, SI book and HI card management. The requirement relates to the declaration of the correct full name of expatriate employees as presented on their passport while submitting Form D02-LT. The full name of expatriate employees must be in the correct order as presented on their passport.

If you would like further information or advice on the new regulations, please contact us direct.