According to the State Budget Estimate Resolution for 2018 recently approved by the National Assembly of Vietnam, the statutory pay rate will be adjusted upward from VND 1.3 million to VND 1.39 million starting from July 1, 2018. Consequently, certain salary and allowance amounts will increase accordingly. To be specific:
Article table of contents
1. The Minimum Monthly Pension for Employees in Vietnam
Clause 5 Article 56 Law on Social Insurance 2014 stipulates:
| 5. The minimum monthly pension of employees participating in mandatory social insurance and qualifying for a pension as prescribed in Articles 54 and 55 of this Law shall be equal to the statutory pay rate, except as stipulated in point i clause 1 Article 2 and clause 3 Article 54 of the Law on Social Insurance. |
Thus, employees participating in mandatory social insurance, if eligible for a pension, will have the minimum monthly pension equal to the statutory pay rate. To be specific:
| Current rate | Rate from July 1, 2018 | |
| Minimum monthly pension | 1,300,000 VND | 1,390,000 VND |
2. Convalescence and Rehabilitation Allowance after Illness
Within 30 days after employees return to work following an illness period, if their health has not yet recovered, they are entitled to a leave of convalescence and rehabilitation ranging from 5 to 10 days.
For each day of leave, employees receive an allowance equal to 30% of the statutory pay rate. The specific rates are as follows:
| Current rate | Rate from July 1, 2018 | |
| Convalescence and rehabilitation allowance | 390,000 VND | 417,000 VND |
3. Lump-sum Maternity Allowance in Vietnam
Article 38 of the Law on Social Insurance 2014 stipulates:
| Female employees giving birth or employees adopting a child under 06 months old shall receive a lump-sum allowance for each child, equal to twice the statutory pay rate. |
Thus, according to current regulations, the lump-sum maternity allowance is: (1,300,000 x 2 = 2,600,000 VND/child).
However, from July 1, 2018, the allowance will be adjusted to: (1,390,000 x 2 = 2,780,000 VND/child), an increase of 180,000 VND compared to the current regulation.
4. Funeral Grant
According to Clause 2 Article 66 of the Law on Social Insurance 2014, in the event of the death of an employee as specified in Clause 1 Article 66 of the Law on Social Insurance, the person organizing the funeral will receive a grant equal to 10 times the monthly statutory pay rate, with specific amounts as follows:
| Current rate | Rate from July 1, 2018 | |
| Funeral grant | 13,000,000 VND | 13,900,000 VND |
5. Monthly Survivor Allowance in vietnam
Clause 1 Article 68 of the Law on Social Insurance 2014 stipulates:
| The monthly survivor allowance for each relative is equal to 50% of the statutory pay rate; in cases where the relative has no caregiver, the allowance will be 70% of the statutory pay rate. |
Therefore, the deceased employee’s relatives will receive a monthly allowance with specific amounts as follows:
| Beneficiary | Current rate | Rate from July 1, 2018 |
| Relative of deceased employee | 650,000 VND | 695,000 VND |
| Relative of deceased employee with no caregiver | 910,000 VND | 973,000 VND |
- Key word:
- salary
- aloowance
- statutory pay rate
- Vietnam
- social insurance
