Social Insurance Contribution and Trade Union Fees in Vietnam

In Vietnam, an employer and its employees must together contribute 32% of the employee’s salary to the social insurance funds (including: social insurance, health insurance, Occupational Accidents and Diseases Insurance and unemployment insurance). However, the employee’s salary used for calculating social insurance contribution is currently capped at about US$ 1,100/month (20 months of current minimum salary). The detail breakdown is as follows:

Type of  insurance	Social Insurance	Occupational Accidents and Diseases Insurance	Health Insurance	Unemployment Insurance	Trade Union Funding and Fees
Employer (%)	17	0.5	3	1	2
Employee (%)	8	None	1.5	1	1
Applicability	Vietnamese employees under employment contracts with the term of at least 3 months (at least 1 month from 1 January 2018);	Vietnamese employees under employment contracts with the term of 1 month or more.	Employees under employment contracts with the term of 3 months or more;	Employees under employment contracts with the term of 3 months or more.	·         Trade Union funding must be paid by the employers to the trade union authority regardless of whether or not such employers have their own grass-roots trade unions ·         Trade Union fee must be paid by employees being trade union members (to the grass-roots trade unions)