09 Increased Allowances for Employees in Vietnam Effective from July 01, 2018

From July 1, 2018, statutory pay rate in Vietnam increased from 1,300,000 VND/month to 1,390,000 VND/month. Consequently, several allowances for employees that are calculated based on the statutory pay rate will also increase accordingly. For specific information on the amounts of these allowances, please refer to the article below.

1. Health Recovery Allowance Post Illness in Vietnam

Employees who have taken sufficient leave according to the sickness policies and within the first 30 days after returning to work whose health has not yet recovered are entitled to a health recovery allowance post illness equal to 30% of the statutory pay rate.

Current Allowance Level Allowance Level from July 1, 2018
390,000 VND 417,000 VND

2. Lump-sum Allowance After Childbirth or Adoption in Vietnam

Female employees who give birth or employees who adopt a child under 06 months old are entitled to a one-time allowance for each child equal to 02 times the statutory pay rate in the month the female employee gives birth or the month the employee adopts the child. The specific allowance levels are:

Current Allowance Level Allowance Level from July 1, 2018
2,600,000 VND 2,780,000 VND

3. Lump-sum Allowance for Occupational Disability from 5% to 30% in Vietnam

Employees with a 5% reduction in labour capacity are entitled to 05 times the statutory pay rate. For every additional 1% reduction, they are entitled to an additional 0.5 times the statutory pay rate.

  Current From July 1, 2018 Onwards
Allowance for 5% labour capacity reduction 6,500,000 VND 6,950,000 VND
Additional allowance per 1% reduction 650,000 VND 695,000 VND

4. Monthly Allowance for Occupational Disability from 31% or More in Vietnam

Employees with a 31% reduction in labour capacity are entitled to receive 30% of the statutory pay rate/month. For every additional 1% reduction, they are entitled to an additional 2% of the statutory pay rate.

  Current From July 1, 2018 Onwards
Allowance for 31% labour capacity reduction 390,000 VND 417,000 VND
Additional allowance per 1% reduction 26,000 VND 27,800 VND

5. Service Allowance for Occupational Disability from 31% or More in Vietnam

In addition to the monthly allowance, employees with an 81% or greater reduction in labour capacity also receive a service allowance equal to the statutory pay rate.

Current Allowance Level Allowance Level from July 1, 2018
1,300,000 VND 1,390,000 VND

6. Lump-sum Allowance upon Death due to Occupational Accidents, Occupational Diseases in Vietnam

For employees who die due to occupational accidents, occupational diseases, or die during the initial treatment period due to occupational accidents or diseases, their relatives are entitled to a one-time allowance of 36 times the statutory pay rate.

Current Allowance Level Allowance Level from July 1, 2018
46,800,000 VND 50,040,000 VND

7. Health Recovery Allowance Post Injury Or Illness Treatment in Vietnam

After stabilizing the injury due to an occupational accident or illness due to an occupational disease but the health has not yet recovered, employees are entitled to health recovery leave from 05 to 10 days. The daily allowance is equal to 25% of the statutory pay rate if recovering health at home; 40% if at a concentrated facility.

  Current From July 1, 2018 Onwards
Allowance when recovering at home 325,000 VND 347,500 VND
Allowance when recovering at a concentrated facility 520,000 VND 556,000 VND

8. Funeral Allowance in Vietnam

The funeral allowance is equal to 10 times the statutory pay rate, with a specific amount as follows:

Current Allowance Level Allowance Level from July 1, 2018
13,000,000 VND 13,900,000 VND

9. Monthly Survivor Allowance in Vietnam

The monthly survivor allowance for each relative is equal to 50% of the statutory pay rate; for relatives without a direct caregiver, the monthly survivor allowance is equal to 70% of the statutory pay rate.

  Current From July 1, 2018 Onwards
Normal case 650,000 VND 695,000 VND
Case of no direct caregiver 910,000 VND 973,000 VND

Legal Basis:

Resolution 49/2017/QH14;

Social Insurance Law 2014.

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