Labor and Insurance Policy Effective Early December 2018

1. Additional Subjects Required to Pay Health Insurance from December 1, 2018

Recently, the Government of Vietnam issued Decree 146/2018/ND-CP detailing and guiding the implementation of some articles of the Law on Health Insurance, officially effective from December 1, 2018. One of the new points of the Decree is the addition of new groups participating in health insurance.

Decree 146 stipulates additional groups participating in health insurance paid by employers, including:

- Relatives of workers, public employees in national defense serving in the Army;- Relatives of police workers serving in the Public Security Forces;- Relatives of individuals performing other tasks in the cryptographic sector.

Specifically, relatives are understood as biological parents, biological parents of the spouse; lawful nurturers of oneself, one's spouse; spouse; biological, legally adopted children from 6 years old to under 18 years old; biological, legally adopted children aged 18 or older if they are still in high school.

Additionally, Decree 146 also stipulates additional groups participating in health insurance in the form of household health insurance, including: Clergy, religious dignitaries; individuals living in social protection establishments except for those specified in Articles 1, 2, 3, 4, and 6 of the Decree who are not financially supported by the state budget for health insurance.

1. From 2022, Foreign Employees in Vietnam Must Pay 8% Mandatory Social Insurance

This notable content is regulated in Decree 143/2018/ND-CP, guiding the Law on Social Insurance and the Law on Occupational Safety and Work Hygiene regarding mandatory social insurance for foreign workers in Vietnam.

From January 1, 2022, employees subject to the regulation in Clause 1, Article 2 of Decree 143 will each month pay 8% of their monthly salary to the retirement and death benefit fund.

Simultaneously, this Decree also specifies that from January 1, 2022, employers shall monthly contribute based on the employee's salary to the social insurance funds as follows:

- 3% to the sickness and maternity fund;- 0.5% to the occupational accident and disease fund;- 14% to the retirement and death benefit fund.

In cases where employees sign labor contracts with multiple employers and are subject to mandatory social insurance, only the first signed labor contract is used for social insurance contribution by the employee and employer. Employers must still contribute to the occupational accident and disease fund for each labor contract signed.

Decree 143/2018/ND-CP takes effect from December 1, 2018.

1. New Regulations on Salary Grading for Specialist Ranks

Circular 13/2018/TT-BNV amends Clause 8, Section III of Circular 79/2005/TT-BNV on salary grading for official public employees when changing jobs, officially effective from December 5, 2018.

This Circular specifies the salary grading for specialist ranks or equivalent for cases not subject to regulations on grading for senior specialists, principal specialists as follows:

- Cases with previous salary grading in the specialist rank or equivalent: Based on the duration of salary grading in the specialist rank or equivalent and the time holding managerial positions in corporations, general corporations, companies to grade a higher salary or calculate seniority allowances beyond the framework (if any).- Cases without previous salary grading in the specialist rank or equivalent:- Starting from the date of 1 year of mandatory social insurance contribution for jobs requiring university qualifications, grade level 1 of the specialist rank or equivalent is applied.- The duration of mandatory social insurance contribution over 1 year is calculated for higher salary grades or seniority allowances beyond the framework (if any) according to regular salary grade increment policies, seniority allowance policies beyond the framework of the specialist rank or equivalent.

1. Business of Driving Training: Amendments to Conditions for Teachers' Qualifications

This is one of the notable contents of Decree 138/2018/ND-CP amending and supplementing several articles of Decree 65/2016/ND-CP on business conditions for automobile driving training and driving test services.

According to Decree 138, besides the conditions on technical facilities and equipment, driving training establishments must have a team of theory and practical driving teachers meeting regulatory standards. Specifically:

- Theory teachers: Must hold a diploma from intermediate level or higher in one of the fields of law, automobile technology, automotive engineering technology, automobile assembly, or other related fields with automotive training content constituting 30% or more. Teachers of the Driving Techniques subject must hold a driving license corresponding to the training vehicle category or higher.- Practical driving teachers:- Must hold a driving license of the corresponding or higher category for the training vehicle, but not lower than category B2;- Teachers for categories B1, B2 must hold a driving license with a minimum duration of 3 years from the date of passing the driving test;- Teachers for categories C, D, E, and F must hold a driving license with a minimum duration of 5 years from the date of passing the driving test;- Must have undergone training in practical driving teaching according to the program issued by competent authorities and be granted a practical driving teaching certificate according to the prescribed form.

Decree 138/2018/ND-CP takes effect from December 1, 2018.

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