Vietnam: How much is the contributions of enterprises and employees to the Fund for Overseas Employment Support?
Establishment of the Fund for Overseas Employment Support
Article 3 of Decision 40/2021/QD-TTg of Vietnam stipulates the establishment of the Fund for Overseas Employment Support specifically as follows:
Article 3. Establishment of the Fund for Overseas Employment Support
1. Establishment of the Fund for Overseas Employment Support under the Ministry of Labor, War Invalids and Social Affairs to support the development, stability and expansion of the market; prevent, reduce and overcome risks to employees and businesses; protect the legitimate rights and interests of employees.
2. The Fund has its head office located in Hanoi City and has a website.
3. Transaction name in English of the Fund: Fund for Overseas Employment Support, abbreviated as FES.
Based on the above provisions, it can be concluded that the purpose of establishing the Fund for Overseas Employment Support is to support the development, stability and expansion of the market; prevent, reduce and overcome risks to employees and businesses; protect the legitimate rights and interests of employees.
Operational principles of the Fund for Overseas Employment Support
The Fund for Overseas Employment Support is based on the principles specified in Article 6 of Decision 40/2021/QD-TTg of Vietnam, specifically:
1. Ensure publicity, transparency, thrift and efficiency, use for the right purposes and in accordance with the provisions of law.
2. Funds' revenues shall be transferred to the Fund's accounts opened at State Treasuries and commercial banks for use and management in accordance with law. The Fund may use up to 50% of the Fund balance of the preceding year to deposit with a term at a Vietnamese commercial bank, but the maximum term is not more than 03 years. Deposit level, deposit term and bank branch receiving deposit shall be decided by the Fund's Director based on the Fund investment plan approved by the Fund Management Council. Interest on bank deposits is added to the Fund's annual revenue.
3. Receive, manage and use aid and sponsorship in accordance with law.
4. Annually, the Fund's executive agency shall make estimates of the Fund's revenues and expenditures and regular expenditures on fund management activities and submit them to the Fund Management Council for approval.
5. Revenue, expenditure, finalization, financial disclosure and reporting regime in accordance with the Law on Accounting, the Law on State Budget and relevant documents.
6. Annually publicizing operation results and audit results in accordance with law on the portal of the Ministry of Labor, War Invalids and Social Affairs. Fund balance of the previous year is carried over to the following year for continued use.
7. Manage and use assets in accordance with the law on management and use of assets; regulations on management and use of public property.
The contributions of enterprises and employees to the Fund for Overseas Employment Support
Contributions of employees to the Fund for Overseas Employment Support
Article 8 of Decision 40/2021/QD-TTg of Vietnam stipulates the contributions of employees to the Fund for Overseas Employment Support, specifically as follows:
1. Contributions
Employees going to work abroad contribute VND 100,000/person/contract to the Fund.
The basis for the Fund contributions is one of the following types of contracts or documents:
- A contract to send Vietnamese workers to work abroad signed between the employee and the service enterprise or non-business organization;
- The overseas vocational training contract signed between the employee and the enterprise on the training and improvement of vocational qualifications and skills abroad;
- The contract or written agreement signed between the employee and the enterprise that wins the contract or receives the contract for the work or project abroad to send Vietnamese workers to work abroad;
- A contract or written agreement on sending workers to work abroad signed between the employee and the Vietnamese organization or individual investing abroad;
- Labor contract signed between the employee and the employer abroad.
2. Employees contribute directly to the Fund in the form of cash payment or transfer to the Fund at least 03 days before the time of exit or at least 05 working days after receiving the notice of approval for contract registration of a competent state agency for the case of entering into a labor contract after exiting the country.
In case the employee contributes to the Fund through an enterprise, organization or individual, the organization or individual shall collect and transfer the entire amount of the employee's contributions in the month to the Fund's account no later than the 10th of the following month.
3. In case employees contribute to the Fund in cash, collecting agencies, enterprises, organizations and individuals shall issue receipts to employees.
Contributions of enterprises to the Fund for Overseas Employment Support
In Article 7 of Decision 40/2021/QD-TTg of Vietnam, the contributions of enterprises to the Fund for Overseas Employment Support are:
1. Contributions
Enterprises operating in the service of sending Vietnamese workers to work abroad under a contract to contribute to the Fund at the rate of VND 150,000/employee/contract. The enterprise may account this contributions to its operating expenses of sending workers to work abroad.
The basis for contributions to the Fund is the contract of sending Vietnamese workers to work abroad signed between the service enterprise and the employee.
2. On a monthly basis, the enterprise shall make contributions in cash or transfer to the Fund according to the number of employees going to work abroad in the month of the enterprise, no later than the 10th of the following month.
Above is the information we provide to you about the contributions of employees and the contributions of enterprises to the Fund for Overseas Employment Support, and also some more information about the Fund. Best regards!
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