Good News: Maternity Benefits in Vietnam Increase Significantly from July 1, 2020

From July 1, 2020, couples giving birth will be entitled to a one-time allowance of VND 3,200,000 for each child, and postnatal recovery support of VND 480,000 per day for convalescence and health recovery in Vietnam. This is indeed good news for those planning to have children this year.

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The maternity benefits in Vietnam will increase from July 1, 2020, including:

1. One-time allowance upon childbirth

Pursuant to Article 38 of the Social Insurance Law 2014:

Female employees giving birth or employees adopting a child under 6 months of age shall receive a one-time allowance for each child, equivalent to 2 times the statutory pay rate of the month the female employee gives birth or the month the employee adopts the child.

In cases where the female employee gives birth but only the father participates in social insurance, the father shall receive a one-time allowance equivalent to 2 times the statutory pay rate of the month of birth for each child.

Additionally, Clause 7, Article 3 of Resolution 86/2019/QH14 stipulates, “Adjust the statutory pay rate from VND 1.49 million/month to VND 1.6 million/month, effective from July 1, 2020.”

Thus, from July 1, 2020, the statutory pay rate will be VND 1.6 million/month, accordingly, the one-time allowance upon childbirth will also increase as follows:

Before July 1, 2020 From July 1, 2020 onwards
2 x VND 1,490,000 = VND 2,980,000 2 x VND 1,600,000 = VND 3,200,000

Consequently, from July 1, 2020 onwards, the one-time allowance upon childbirth will be VND 3,200,000 (an increase of VND 220,000 compared to the previous allowance).

2. Recovery and health rehabilitation benefits after maternity leave in Vietnam

According to Clause 3, Article 41 of the Social Insurance Law 2014:

“The benefit for recovery and health rehabilitation after maternity leave per day is equivalent to 30% of the statutory pay rate.”

Similar to the calculation of the one-time allowance upon childbirth, the statutory pay rate of VND 1.6 million/month will be used as the basis to calculate the benefit for recovery and health rehabilitation after maternity leave from July 1, 2020.

Therefore, from July 1, 2020 onwards, the benefit for recovery and health rehabilitation after maternity leave will be 30% x VND 1,600,000 = VND 480,000/day (an increase of 33,000 VND compared to the benefit before July 1, 2020).

Thu Ba

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