Maximum Working Week 

The maximum working week in Vietnam is 48 hours, according to the Labor Code of Vietnam. This includes both regular and overtime work. Employers are not permitted to require employees to work more than 48 hours per week, except in certain limited circumstances, such as when dealing with an emergency or when the employee has agreed to work overtime. 

Annual Leave

The annual leave entitlement for employees in Vietnam is established by the Labor Code of Vietnam. Here’s a summary of what it entails: 

• Normal Conditions: Employees working under standard conditions are entitled to 12 working days of annual leave. 
• Special Conditions (14-16 Days): Certain categories of workers, such as underage employees, disabled individuals, and those engaged in strenuous, hazardous, or dangerous jobs, are entitled to a longer annual leave of 14 working days. For individuals involved in highly strenuous, hazardous, or dangerous occupations, the annual leave is extended to 16 working days. 
• Proportional Leave: For employees who have not completed a full 12 months of service with an employer, their annual leave entitlement is calculated proportionally based on the number of months they have worked. 

Sick Leave 

Vietnamese employees who are medically certified as sick are eligible for paid sick leave through the Social Insurance Authority. Employees must submit a medical certificate within 48 hours of their illness onset. The amount varies based on the duration of contributions to the Social Insurance Fund: 

• 30 days per year (for under 15 years of contributions) 
• 40 days per year (for 15 to 30 years of contributions) 
• 60 days per year (for over 30 years of contributions) 
• 180 days per year for specific long-term treatments. The first 180 days, including public holidays, New Year holidays, and weekly rest days, are entitled to 75% of the salary. Those needing extended treatment receive sick pay at a reduced rate of 45% to 65% of their salary.
   

Maternity and Paternity Leave 

• Maternity leave 

Employees in Vietnam are entitled to 6 months of paid maternity leave for the birth of their first child. This leave can be extended to 12 months for the birth of a second child, and 18 months for the birth of a third child or more. 

Employees are also entitled to 30 days of paid maternity leave before the birth of their child. This leave can be used for prenatal care appointments and to prepare for the birth of the child. 

During maternity leave, employees are entitled to receive 100% of their regular salary and benefits. They are also entitled to receive a number of other benefits, such as reimbursement for medical expenses and travel expenses. 

• Paternity leave 

Employees in Vietnam are entitled to 14 days of paid paternity leave for the birth of their child. This leave can be taken at any time within the first 6 months of the child’s birth. 

During paternity leave, employees are entitled to receive 100% of their regular salary and benefits. 

Social Insurance 

The employee contribution rate is 8% of wages, while the employer contribution rate is 17.5% of wages. These contributions are used to fund the following mandatory social insurance programs: 

• Sick leave 
• Maternity leave 
• Allowances for work-related accidents and occupational diseases 
• Pension Allowance 
• Mortality Allowance 

Employers are required to pay the social insurance contributions on time and in full on behalf of their employees. Failure to do so may result in fines and other penalties. 

Health Insurance 

The health insurance contribution rate is 3% of wages for employees and 3% of wages for employers. These contributions are used to fund the health insurance program, which is administered by the Vietnam Social Security (VSS). 

Employees enrolled in the health insurance program are entitled to a number of benefits, including: 

• Coverage for medical expenses incurred at public and private hospitals and clinics 
• Coverage for hospitalization expenses 
• Coverage for maternity care expenses 
• Coverage for prescription drugs 

Employees can also purchase supplementary health insurance plans to provide additional coverage and benefits. Supplementary health insurance plans are typically offered by private insurance companies. 

Employers in Vietnam are required to register their employees with the VSS and to pay the health insurance contributions on their behalf. Employers can also choose to provide their employees with supplementary health insurance plans, but this is not mandatory. 

Trade Union 

In Vietnam, trade union fees are essential for the national trade union system, following the Labor Code. All workers in different sectors, including employees, government staff, and self-employed individuals, must pay these fees. 

The fee amount is based on a worker’s income, but it cannot exceed 2% of their taxable income as per the Labor Code. Workers need to contribute 2% of their income covered by social insurance to the trade union funds. 

When these fees are collected, half goes to higher-level trade unions, and the other half supports activities at the enterprise level. 

Not all businesses in Vietnam are required to have a trade union. The Labor Code states that enterprises with ten or more workers must establish one. If a business doesn’t have a trade union, they must find other ways to protect their workers’ rights and benefits. 

Unemployment Insurance 

Unemployment insurance contributions apply exclusively to Vietnamese individuals. Both employers and employees contribute 1% each of the income subject to UI contribution. This income covers salaries, specific allowances, and regular payments, but it’s limited to 20 times the minimum regional salaries for UI contributions.