Vietnam: Method of determining the contribution level of employees in the retirement program

23:29, 10/07/2024

Circular 19/2018/TT-BLDTBXH was issued by the Ministry of Labor, War Invalids and Social Affairs of Vietnam on October 30, 2018, providing detailed guidance on determining the contribution levels of employees in the retirement program.

Circular 19 stipulates that in the case where employees jointly contribute to the pension fund, the determination of the contribution rate, frequency, duration, and method of contribution is specifically as follows:

- The contribution rate is either a fixed amount or a percentage of the employee's salary

.- The frequency of contribution can be monthly, bimonthly, quarterly, or other frequencies chosen by the employee according to their ability and needs.

- The duration of contribution is agreed upon by the employee and the employer, in accordance with the voluntary supplementary retirement program that the employer has established and the employee has chosen to participate in. The contribution duration is specifically recorded in the agreement document.

- Employees contribute to the pension fund through the employer by either authorizing the employer to contribute or deducting from their monthly salary to contribute to the pension fund.

More details can be found in Circular 19/2018/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam effective from December 15, 2018.

-Thao Uyen-

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