What is the maternity regime for social insurance participants in Vietnam from July 1, 2025? Are social insurance contributions deductible from personal income tax in Vietnam?
What is the maternity regime for social insurance participants in Vietnam from July 1, 2025?
From July 1, 2025, the Law on Social Insurance 2024 officially takes effect with numerous changes related to maternity policies for voluntary and compulsory social insurance contributors as follows:
*For Voluntary Social Insurance Participants
(1) Supplementing Maternity Allowance for Voluntary Social Insurance Participants:
According to Article 4 of the Law on Social Insurance 2024, voluntary social insurance includes the following policies:
- Maternity allowance;- Retirement;- Survivor benefits;- Occupational accident insurance as per the Law on Occupational Safety and Health.
Additionally, according to Article 4 of the Law on Social Insurance 2014, voluntary social insurance includes retirement and survivor benefits policies.
Thus, the Law on Social Insurance 2024 has supplemented maternity allowance policies for voluntary social insurance participants.
(2) Recipients and Maternity Allowance Level for Voluntary Social Insurance Contributions:
Based on Clause 1, Article 94 of the Law on Social Insurance 2024, the recipients of maternity allowance who contribute to voluntary social insurance include individuals who have voluntarily contributed to social insurance, or both voluntarily and compulsorily for at least 6 months within the 12 months before childbirth, are eligible for maternity benefits under one of the following conditions: (i) Female workers giving birth; (ii) Male workers whose wives give birth.
The maternity allowance is defined in Clause 1, Article 95 of the Law on Social Insurance 2024 as follows: The allowance is VND 2,000,000 for each child born and for each fetus of 22 weeks or more that dies in the womb, or dies during labor.
Female workers either from ethnic minority groups or those who are from the Kinh ethnic group with husbands from minority groups classified as poor households, are entitled to additional support as per the Government of Vietnam regulations.
*For Compulsory Social Insurance Participants:
(1) Additions to Eligible Maternity Policy Cases
According to Article 50 of the Law on Social Insurance 2024, two new cases are added to eligible maternity policies:
(i) Surrogate mothers who have made compulsory social insurance contributions for at least 12 months and must take time off work for prenatal care based on a practicing healthcare provider's advice must contribute to compulsory social insurance for at least 3 months during the 12 months prior to childbirth to be eligible for maternity policies.
(ii) Female workers giving birth with at least 6 months of compulsory social insurance contributions within the 24 months before childbirth, in cases where they must take leave for infertility treatment.
(2) An Increase in Leave Days for Female Workers for Prenatal Check-ups
In accordance with Article 51 of the Law on Social Insurance 2024, the number of days each instance of leave for prenatal check-ups increases to 2 days (maximum) in all cases, instead of the current 1 or 2 days if far from healthcare facilities or if the pregnant woman has medical conditions or abnormal fetus conditions as per Article 32 of the Law on Social Insurance 2014.
(3) Female Workers Undergoing Abortion to Receive Maternity Policies
Based on Clause 2, Article 52 of the Law on Social Insurance 2024, in cases where female workers are pregnant with a fetus of at least 22 weeks and undergo miscarriage, abortion, intrauterine fetal death, or fetal death during labor, the female worker and her husband can take leave with maternity benefits similar to female workers giving birth.
Currently, only pathological abortions are eligible for maternity policies.
(4) Change in Leave Time for Maternity Benefits in Cases of Miscarriage, Abortion, Intrauterine Fetal Death, Fetal Death During Labor, and Ectopic Pregnancy
According to Article 52 of the Law on Social Insurance 2024, the leave time for maternity benefits in such cases is specified as follows:
- 10 days for a fetus under 5 weeks;- 20 days for a fetus from 5 weeks to under 13 weeks;- 40 days for a fetus from 13 weeks to under 22 weeks;- 50 days for a fetus of 22 weeks or more.
What is the maternity regime for social insurance participants in Vietnam from July 1, 2025? Are social insurance contributions deductible from personal income tax in Vietnam? (Image from Internet)
What are the social insurance principles in Vietnam from July 1, 2025?
According to Article 5 of the Law on Social Insurance 2024, the principles of social insurance from July 1, 2025, are stipulated as follows:
- Levels of mandatory and voluntary social insurance benefits are calculated based on the contribution rate and contribution period, with sharing among social insurance participants as specified.
- Mandatory social insurance contributions are calculated based on the salary used as the basis for mandatory social insurance contributions. Voluntary social insurance contributions are based on income chosen by participants.
- Individuals with both mandatory and voluntary social insurance contributions are entitled to monthly allowance policies, pensions, and survivor benefits based on the duration of mandatory and voluntary social insurance contributions.
+ The duration of social insurance contributions calculated for a one-time benefit cannot be used for further social insurance benefit calculations.
- The social insurance fund is centrally and uniformly managed, transparent, and public; it is used for the right purposes and is independently accounted according to constituent fund types, groups of subjects implementing state-regulated salary policies, and employer-determined salary policies.
- The implementation of social insurance must be simple, easy, convenient, ensuring promptness and completeness of the rights of participants and beneficiaries of social insurance benefits.
- The minimum contribution period for determining eligibility for pensions and monthly survivor allowances is calculated by year, with a full 12 months constituting a year. If the contribution period has months left over, from 1 to 6 months is considered half a year, 7 to 11 months is considered a year.
- The resolution of social insurance benefits is determined according to the legal regulations on social insurance at the time of benefiting.
Are social insurance contributions deductible from personal income tax in Vietnam?
According to the provisions at Point a, Clause 2, Article 9 of Circular 111/2013/TT-BTC, amended by Article 15 of Circular 92/2015/TT-BTC (Provisions related to personal income tax for individual businesses in this Article are annulled by Clause 6, Article 25 of Circular 92/2015/TT-BTC), as follows:
Deductions
Deductions according to this Article are amounts deducted from an individual's taxable income before determining the taxable income from wages, salaries, and business. Specifically:
...
- Deductions for insurance contributions and voluntary pension funds
a) Insurance contributions include: social insurance, health insurance, unemployment insurance, professional liability insurance for certain occupations requiring mandatory insurance participation.
b) Contributions to voluntary pension funds, purchases of voluntary retirement insurance
Contributions to voluntary pension funds, purchases of voluntary retirement insurance can be deducted from taxable income according to actual occurrences, but not exceeding one (01) million VND/month for workers participating in voluntary retirement products as guided by the Ministry of Finance, including both amounts paid by employers for workers and amounts self-paid by workers (if any), even if participating in multiple funds. The basis for determining deductible income is the copy of payment proof (or fee) provided by the voluntary pension fund or insurer.
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Thus, social insurance contributions will be deducted from an individual's taxable income before determining the taxable income from wages and salaries.
