Vietnam: Employees' contribution to the Fund for overseas employment

Vietnam: Employees' contribution to the Fund for overseas employment (Internet image)

1. What is the Fund for overseas employment?

According to Clause 1, Article 66 of the Law on Vietnamese guest workers 2020, the Fund for overseas employment is a non-budget government fund affiliated to Ministry of Labor – War Invalids and Social Affairs aiming to

+ Assist market development, stabilization and expansion;

+ Prevent, minimize and remediate risks for workers and enterprises;

+ Protect legal rights and benefits of workers

The fund must not operate on a profit basis, must have juridical person and must have independent accounting.

Sources of fund for overseas employment in Vietnam as prescribed in Article 68 of the Law on Vietnamese guest workers 2020, include:

- Contribution of service enterprises.

- Contribution of workers.

- Other legitimate revenues.

2. Contribution to the Overseas Employment Support Fund by employees in Vietnam

Article 8 of Decision 40/2021/QD-TTg stipulates the contribution of employees to the Overseas Employment Support Fund as follows:

* Contribution level:

Employees going to work abroad contribute 100,000 VND per person or contract to the fund.

The basis for the Fund's contribution is one of the following types of contracts or documents:

- A contract between the employee and the service enterprise or non-profit organization to send Vietnamese workers abroad;

- The contract for overseas vocational training signed by the employee and the enterprise for the training and improvement of vocational qualifications and skills abroad;

- The contract or written agreement signed between the employee and the enterprise that wins or receives the contract for the work or project abroad in order to send Vietnamese workers abroad.

- A contract or written agreement between the employee and the Vietnamese organization or individual investing abroad on sending workers to work abroad;

- A labor contract is signed between the employee and the employer in another country.

* Form of Contribution

Employees contribute directly to the Fund in the form of cash payment or transfer at least three days before the time of departure; or within five working days from the date of receiving the notification of approval for contract registration from the competent state agency, in the case of entering into a labor contract after exiting the country.

In case the employee contributes to the Fund through an enterprise, organization, or individual, the organization or individual shall collect and transfer the entire amount of the employee's contribution for the month to the Fund's account no later than the 10th of the following month.

In the event that employees contribute to the Fund in cash, agencies, enterprises, organizations, and individuals collect and issue receipts to the employees.

3. Contribution to the Overseas Employment Support Fund by the enterprise in Vietnam

The contribution to the Overseas Employment Support Fund by enterprises is specified in Article 7 of Decision 40/2021/QD-TTg as follows:

- Contribution to the Overseas Employment Support Fund of the enterprise: enterprises providing services to send Vietnamese workers to work abroad under contract to contribute to the fund are charged 150,000 VND per employee and per contract.

This contribution may be accounted for as part of the enterprise's operating expenses for sending workers abroad to work.

The basis for contributing to the fund is the contract for sending Vietnamese workers to work abroad signed between the service enterprise and the employee.

- On a monthly basis, the enterprise shall make cash or transfer contributions to the Fund based on the number of employees going to work abroad in the enterprise's month, no later than the 10th of the following month.

Van Trong

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