Maternity benefits are an important policy of great interest to female employees. So, what is the newest formula for calculating the maternity benefits paid to employees?
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Hanoi-Vietnam: The newest formula for calculating the maternity benefits paid to employees
According to current legal regulations, female employees who give birth and have paid social insurance premiums, and meet the conditions prescribed by the Social Insurance Law will be entitled to the following benefits:
1. Lump-sum allowance upon childbirth
One of the maternity benefits for female employees receive when giving birth is a lump-sum allowance. According to Article 38 of the Social Insurance Law 2014, female employees giving birth or employees adopting a child under 6 months old are entitled to a Lump-sum allowance for each child equivalent to twice the statutory pay rate of the month when the child is born or the month when the employee adopts the child.
Lump-sum allowance:
Lump-sum allowance = Statutory pay rate x 2
Currently, the statutory pay rate applied is 1,490,000 VND.
Thus, female employees giving birth will receive a lump-sum allowance of 1,490,000 x 2 = 2,980,000 VND.
Regarding the statutory pay rate, in Resolution 86/2019/QH14, the National Assembly of Vietnam directed the Government of Vietnam to adjust the statutory pay rate from 1.49 million VND/month to 1.6 million VND/month, effective from July 1, 2020.
However, due to the impact of the COVID-19 pandemic, the schedule for increasing the statutory pay rate has been delayed. Currently, there is no exact decision on the timing of the statutory pay rate increase, so the statutory pay rate currently applied remains 1,490,000 VND.
2. Maternity benefit
The Maternity benefit is a policy ensuring material support for female employees to compensate for lost income during pregnancy and childbirth. During the maternity leave period, female employees will receive maternity leave benefits as follows:
| Maternity benefit = | Average monthly salary serving as the basis of social insurance premium payment in the last 6 consecutive months before cessation of work | X 100% |
In which,
The average monthly salary serving as the basis of social insurance premium payment used as a basis for calculating maternity benefits is the average monthly salary of the last 6 consecutive months of social insurance premiums before cessation of work. If the social insurance premiums are not continuous, they will be aggregated.
In cases where female employees continue working until the time of childbirth or adoption of a child, and the month of childbirth or adoption falls within the 12 months preceding the event, the average monthly salary serving as the basis of social insurance premium payment in the last 6 consecutive months before cessation of work, including the month of childbirth or adoption, will be considered.
Illustrative example:
Ms. C gave birth on March 16, 2016, with the following social insurance premium record:
- From October 2015 to January 2016 (4 months), social insurance premiums were made with a salary of 5,000,000 VND/month;- From February 2016 to March 2016 (2 months), social insurance premiums were made with a salary of 6,500,000 VND/month.
The average monthly salary serving as the basis of social insurance premium payment in the last 6 consecutive months before cessation of work for Ms. C is calculated as follows:
| Average monthly salary serving as the basis of social insurance premium payment for the last 6 consecutive months before cessation of work | = | [(5.000.000 x 4) + (6.500.000 x 2)] ÷ 6 | = 5,500,000 |
Thus, the average monthly salary serving as the basis of social insurance premium payment for the last 6 consecutive months before cessation of work to calculate the maternity benefits for Ms. C is 5,500,000 VND/month.
Ms. C will receive 100% of the average monthly salary serving as the basis of social insurance premium payment in the last 6 consecutive months before cessation of work, i.e., she will receive 5,500,000 VND/month.
3. Postnatal convalescence benefit
According to Article 41 of the Social Insurance Law 2014, if the health condition has not recovered within 30 days of returning to work, female employees giving birth are entitled to rest and recover for a period of 5 to 10 days.
In addition to the convalescence and health rehabilitation period, female employees are also entitled to an allowance called the postnatal convalescence benefit.
The benefit for convalescence and health rehabilitation after the maternity leave period is equivalent to 30% of the statutory pay rate per day.
Benefit amount = 30% x Statutory pay rate
In which, the current statutory pay rate is 1,490,000 VND.
=> The postnatal convalescence benefit is 447,000 VND.
Thus, female employees during pregnancy and childbirth will be entitled to the three maternity benefits mentioned above. Female employees eligible for these benefits should pay attention to these regulations to receive full and timely support.
Thuy Tram
- Key word:
- maternity benefits paid to employees
- Vietnam
