What is sickness allowance in Vietnam from July 1, 2025? Are person taking 14 days of sick leave required to pay social insurance for that month in Vietnam?
Are person taking 14 days of sick leave required to pay social insurance premiums that month in Vietnam?
Based on Clause 6, Article 33 of the Law on Social Insurance 2024, it is stipulated as follows:
Levels, methods and time limits for compulsory social insurance payment by employees
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6. In the event that an employee takes sick leave for 14 or more working days in the first month of employment or the first month of returning to work, they still have to pay social insurance contributions for that month.
7. In cases where the remaining duration of mandatory social insurance contribution is a maximum of 6 months short of the qualification for pension or monthly survivor benefits, the employee or their relatives are allowed to make a one-time payment for the missing months, based on the total contribution rate of both the employee and employer before the employee stops working or dies, to the retirement and survivor fund. This additional contribution period will not be counted as the period in which the employee was engaged in strenuous, hazardous, or dangerous work or work under specially strenuous, hazardous, or dangerous conditions as listed by the Minister of Labor, Invalids, and Social Affairs, or under economic and social hardship regions.
In cases where the employee stops paying mandatory social insurance, but the remaining period for eligibility for a pension exceeds 6 months, the employee has the right to continue voluntary social insurance contributions.
8. The Minister of Labor, Invalids, and Social Affairs will provide detailed regulations for Clause 7 of this Article.
As per the new regulation mentioned above, starting from July 1, 2025, if an employee does not take sick leave during the first month of employment or return to work and is on sick leave for 14 or more working days, they do not have to pay social insurance for that month.
In contrast, if the employee takes sick leave for 14 or more working days during the first month of employment or the first month of returning to work, they still have to pay social insurance for that month.
What is sickness allowance in Vietnam from July 1, 2025? (Internet image)
What is sickness allowance in Vietnam from July 1, 2025?
Based on Article 45 of the Law on Social Insurance 2024, the benefits of sick leave are stipulated as follows:
(1) The benefits of sick leave are calculated monthly, based on the following foundations:
- The salary used as the basis for social insurance contributions of the most recent month before taking sick leave;
- The salary used as the basis for social insurance contributions of the first month of social insurance participation or the first month of re-participation if sick leave is taken immediately in the first month of participation or re-participation.
(2) The sick leave benefit for employees stipulated in Clause 1, Article 43, and Article 44 of the Law on Social Insurance 2024 is 75% of the salary used as the basis for social insurance contributions stipulated in (1).
(3) The sick leave benefit for employees stipulated in Clause 2, Article 43 of the Law on Social Insurance 2024 is calculated as follows:
- 65% of the salary used as the basis for social insurance contributions stipulated in (1) if mandatory social insurance has been paid for 30 years or more;
- 55% of the salary used as the basis for social insurance contributions stipulated in (1) if mandatory social insurance has been paid for between 15 to under 30 years;
- 50% of the salary used as the basis for social insurance contributions stipulated in (1) if mandatory social insurance has been paid for under 15 years.
(4) The sick leave benefit for employees stipulated in Clause 3, Article 43 of the Law on Social Insurance 2024 is 100% of the salary used as the basis for social insurance contributions stipulated in (1).
(5) The sick leave benefit for one day is calculated as the monthly sick leave benefit divided by 24 days. The half-day sick leave benefit is calculated as half of the full-day sick leave benefit.
When calculating the sick leave benefit for employees who take incomplete days of sick leave, if the leave is under half a day, it is counted as half a day; from half a day to under one day, it is counted as one day.
When Does the Law on Social Insurance 2024 Take Effect in Vietnam?
Based on Article 140 of the Law on Social Insurance 2024, the effective date is stipulated as follows:
Effective Date
1. This Law takes effect from July 1, 2025.
2. The Social Insurance Law No. 58/2014/QH13 has been amended and supplemented by Law No. 84/2015/QH13, Law No. 35/2018/QH14, and Code No. 45/2019/QH14 (collectively referred to as Law No. 58/2014/QH13), and Resolution No. 93/2015/QH13 dated June 22, 2015, of the National Assembly on the implementation of policies for one-time social insurance payments for employees, shall cease to be effective from the effective date of this Law.
According to the above stipulations, the Law on Social Insurance 2024 takes effect in Vietnam from July 1, 2025.
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