Vietnam
Mandatory and supplementary employee benefits in Vietnam complement one another for various coverages, including health, workers’ compensation, unemployment, accidents, and occupational diseases. Foreign workers in Vietnam with a work permit, practice certificate, or license must contribute to health and social insurance. The basis for social insurance contribution is broadened to include salaries, allowances, and other supplementary amounts.
Country Insight
Mandatory employee benefits and insurance (government schemes)
All registered companies and organizations in Vietnam subscribe to the compulsory Social and Health Insurance schemes under the following regulations.
- Social Insurance Law 2014, Government Social Insurance Benefits – includes allowances for sick leave, maternity, pension, and a death gratuity.
- Law on Health Insurance 2008, on amendments 2014 & Decree no. 105/2014/ND-CP – includes health coverage for a variety of in and out-patient care and is subject to exclusions.
- Law on Occupational Safety and Hygiene 2015 – includes varying benefit levels depending on the degree of occupational injury or disease.
Supplementary employee benefits in Vietnam (employer-sponsored, commercial)
Workers’ Compensation
Employer-sponsored worker’s compensation insurance (WCI) is designed to back up the employers’ liability under the Labor Code and Law No. 84/2015/QH13 on occupational safety and hygiene. Most companies will purchase this insurance as the mentioned limit or even better beyond these (this dovetails to the Law on Occupational Safety and Hygiene).
Group Medical Insurance
A Hospitalization and Surgical Insurance Scheme covers hospital charges and surgical and medical expenses arising from hospital confinement due to sickness, disease, or accident. The outpatient section reimburses medical expenses incurred in a physician’s clinic.
Group Life Insurance & Critical Illness Insurance
Group Life Insurance & Critical Illness Insurance is now fast becoming a popular and essential component of a good employee benefits package for many organizations in the country.
Travel Insurance
Business travel insurance can be obtained in two ways in Vietnam:
- Per-trip coverage: You can declare and insure each business trip individually before traveling.
- Annual policy: You can opt for an annual policy that automatically covers all your business trips throughout the year.
Group Voluntary Pension Plans
There are limited voluntary pension plan providers in our market, and there are two ways to participate in voluntary pension funds in Vietnam. Both options aim to supplement the state pension system and offer Vietnamese workers additional ways to save for retirement. The main difference lies in the type of company offering the service and the specific regulations governing each option.
This information about employee benefits in Vietnam is provided by Aegis Insurance Brokers, Asinta’s employee benefits consulting Partner in Vietnam.