1. Minimum salary increase
Minimum salary for zone labourers at both domestic and foreign-owned enterprises in Vietnam will be raised beginning 1 January 2011 and beginning 1 July 2011. Most localities will follow the decree beginning 1 January 2011, while a number of cities and provinces will implement beginning 1 July 2011.
Decree No. 107/2010/ND-CP regulates minimum salary for Vietnamese people working for foreign-owned firms, organizations and foreign individuals in the country. The salary adjustment will help raise the minimum salary level for workers from foreign-invested businesses to between VND1.1-1.55 million (US$55-75) against the current level of VND1-1.34 million (US$50-67) per month (raise 10%-16%).
Decree No. 108/2010/ND-CP for labourers working at companies, cooperatives, farms, household businesses, individual businesses and other organizations in the country which hire Vietnamese workers. Workers at domestic businesses and organizations will receive an increase of between VND730,000-980,000 (US$36.5-49) per month to VND830,000-1.35 million (US$41.5-67.5) (raise 14% - 38%).
The general minimum salary increase adjustment from VND730,000 to VND830,000 per month (14%) is agreed by National Assembly on 11 November 2010, and it will be effected from 1 May 2011.
Thereby, the maximum salary for Social, Medical and Unemployment Insurance contributions will be VND16,600,000.
2. New regulations set for unemployment insurance
The Ministry of Labour, Invalids and Social Affairs has issued Circular No. 32/2010/TT-BLDTBXH, detailing a number of provisions in Decree No. 127/2008/ND-CP of 12 December 2008, on unemployment insurance.
The new circular replaces Circular No. 04/2009/TT-BLDTBXH of January 2009 and regulates in greater detail the conditions for receiving unemployment insurance.
Accordingly, the unemployed worker shall be entitled to unemployment insurance if he or she meets three conditions:
(1) has participated in the unemployment insurance programme for at least 12 months continuously during the previous 24 months prior to unemployment;
(2) has registered with a job introduction center under the provincial Labour and Social Welfare Service once unemployed;
(3) remains unemployed for at least 15 working days following such registration.
Also accordingly, the company has a responsibility to report on the UI payment situation of the previous year to Labour Office by 15 Jan yearly (Form No. 22).
The new circular also provides for unemployment allowance levels and the period of receiving unemployment allowance. This circular takes effect 45 days from the date promulgated (effective from 8 Dec 2010).
3. Next year (2011), % contributions for SI MI UI are remain unchanged:
|
SI
|
MI
|
UI
|
Company (20%)
|
16%
|
3%
|
1%
|
Employee (8.5%)
|
6%
|
1.5%
|
1%
|