How Do Employees Working Abroad Contribute to the Overseas Employment Support Fund?
What is the Overseas Employment Support Fund?
Based on Clause 1, Article 66 of the 2020 Law on Vietnamese Workers working overseas under contracts, the Overseas Employment Support Fund is a non-budget state financial fund under the Ministry of Labor, Invalids, and Social Affairs with the purposes of:
- Supporting the development, stabilization, and expansion of the market;
- Preventing, minimizing, and overcoming risks for workers and enterprises;
- Protecting the legitimate rights and interests of workers.
The Fund operates on a non-profit basis, has legal status, and is independently accounted.
The sources for forming the Overseas Employment Support Fund are specified in Article 68 of the 2020 Law on Vietnamese Workers working overseas under contracts, including:
- Contributions from service enterprises.
- Contributions from workers.
- Other legitimate revenue sources.
How do workers working abroad contribute to the Overseas Employment Support Fund?
How do workers contribute to the Overseas Employment Support Fund?
According to Article 8 of Decision 40/2021/QD-TTg regulating the contributions of workers to the Overseas Employment Support Fund as follows:
Workers going overseas to work contribute to the Fund at a rate of 100,000 VND/person/contract.
The basis for contribution to the Fund is one of the following types of contracts or documents:
- Contract for sending Vietnamese workers to work abroad signed between the worker and the service enterprise or public service organization;
- Overseas vocational training contract signed between the worker and the enterprise regarding vocational training, skills enhancement abroad;
- Contract or agreement signed between the worker and the enterprise winning bids, receiving contracts for projects abroad to send Vietnamese workers to work abroad;
- Contract or agreement to send workers to work abroad signed between the worker and Vietnamese organizations or individuals investing abroad;
- Employment contract signed between the worker and the foreign employer.
Workers contribute directly to the Fund by paying cash or transferring money to the Fund no later than 3 days before departure or no later than 5 working days from the date of receiving the notification of contract registration approval from the competent state authority for cases where the employment contract is concluded after departure.
In cases where workers contribute to the Fund through enterprises, organizations, or individuals sending them abroad, such entities shall collect and transfer the entire contribution of the workers for the month to the Fund's account no later than the 10th of the following month.
For workers contributing to the Fund in cash, the collecting agency, enterprise, organization, or individual must issue a receipt to the worker.
How much do service enterprises sending Vietnamese workers overseas contribute to the Fund?
The contributions of enterprises to the Overseas Employment Support Fund are regulated in Article 7 of Decision 40/2021/QD-TTg as follows:
Contributions of Enterprises
1. Contribution Level
Service enterprises sending Vietnamese workers to work overseas under contracts contribute to the Fund at a rate of 150,000 VND/worker/contract. Enterprises may account for this contribution as operational costs associated with sending workers abroad.
The basis for contribution to the Fund is the contract for sending Vietnamese workers overseas signed between the service enterprise and the worker.
2. Monthly Periodic Contribution
Each month, enterprises contribute by paying cash or transferring funds to the Fund based on the number of workers sent overseas during the month, no later than the 10th of the following month.
- Contribution level of the Overseas Employment Support Fund for enterprises: Service enterprises sending Vietnamese workers to work abroad under contracts contribute to the Fund at 150,000 VND/worker/contract.
Enterprises may account for this contribution as operational costs associated with sending workers abroad.
The basis for contribution to the Fund is the contract for sending Vietnamese workers overseas signed between the service enterprise and the worker.
- Monthly, enterprises allocate contributions by cash payment or bank transfer to the Fund based on the number of workers sent overseas each month, no later than the 10th of the following month.
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