From January 1, 2018, numerous regulations regarding salaries, taxes, and social insurance in Vietnam officially come into effect. Below, Lawnet will highlight the 10 most notable regulations, including:
Article table of contents
1. Increase in region-based minimum wages in Vietnam by VND 180,000 – 230,000/month
Decree 141/2017/ND-CP stipulating region-based minimum wage increases has just been issued by the Government of Vietnam. Starting from January 1, 2018, region-based minimum wages will be raised by VND 180,000 – 230,000/month, with specific amounts as follows:
- Region I: VND 3,980,000/month;
- Region II: VND 3,530,000/month;
- Region III: VND 3,090,000/month;
- Region IV: VND 2,760,000/month.
2. Official application of criminal liability for acts of fraud in Social Insurance and Health Insurance in Vietnam
Criminal Code 2015 officially takes effect from January 1, 2018. Notably, for the first time, criminal liability will be applied for acts of fraud in Social Insurance and Health Insurance.
Specifically, Articles 214, 215 of Criminal Code 2015 stipulate that any individual who engages in fraudulent acts in Social Insurance, Unemployment Insurance, Health Insurance such as creating fake documents, falsifying the content of documents, or using fake documents to deceive state agencies to embezzle Social Insurance and Health Insurance funds will face criminal consequences, including one of the following penalties:
- A fine from VND 20 million to 100 million;- Non-custodial reform for up to 2 years;- Imprisonment from 3 months to 2 years.
Additionally, anyone who evades paying Social Insurance and Health Insurance for employees may be prosecuted under Article 216 of Criminal Code 2015, with a maximum imprisonment sentence of 5 years. Legal entities that commit tax evasion may face fines ranging from VND 200 million to 3 billion.
3. Employment contracts from 1 month to less than 3 months must participate in compulsory Social Insurance in Vietnam
This notable content is mentioned in Law on Social Insurance 2014. From January 1, 2018, the provisions at Point b, Clause 1 and Clause 2, Article 2 of Law on Social Insurance 2014 take effect, supplementing two mandatory Social Insurance groups, specifically:
- Individuals working under employment contracts with a term from 1 month to less than 3 months;
- Employees who are foreign citizens working in Vietnam with a work permit or practice certificate or practice license issued by a competent authority of Vietnam participating in compulsory Social Insurance according to the regulations of the Government of Vietnam.
4. Change in the conditions for retirement age for pension benefits in Vietnam
According to the provisions of Clause 1, Article 16 of Circular 59/2015/TT-BLDTBXH, from 2018 onwards, employees with a labor capability reduction of 61% to 80% and having paid Social Insurance for at least 20 years are eligible for pension benefits when they meet the following age conditions:
| Year of retirement | Age for men | Age for women |
| 2018 | From 53 years old and above | From 48 years old and above |
| 2019 | From 54 years old and above | From 49 years old and above |
| From 2020 onwards | From 55 years old and above | From 50 years old and above |
5. New calculation method for monthly wages for Social Insurance contributions
According to the provision in Clause 2, Article 30 of Circular 59/2015/TT-BLDTBXH, the monthly wages for Social Insurance contributions from January 1, 2018 onwards include:
- Salary, wage allowances as per Clause 1, Article 30 of Circular 59/2015/TT-BLDTBXH;- Other additional amounts as per point a, Clause 3, Article 4 of Circular 47/2015/TT-BLDTBXH.
