13 April, 2018
From 1 January 2018 onwards, social insurance contributions will be calculated based on wages, perks and other allowances, including those based on designation, responsibility, hazardous work and seniority, that are not specifically mentioned in labour contracts.
However, not all allowances and additional payments will be included in the calculation of a worker’s social insurance contribution. Certain additional welfares and benefits such as bonuses, telephone, patrol and lunch allowances will not be included.
As of 1 January 2018, violations of the Law on Social Insurance, health insurance and unemployment insurance will be dealt with in accordance with the Penal Code 2015, as amended in 2017.
Accordingly, employers may face fines of up to VND3 billion (c. USD132,300) and imprisonment of up to 10 years for social insurance evasion.
For further information, please contact:
Bill Magennis, Partner, Allens
bill.magennis@allens.com.au
Allens is an independent partnership operating in alliance with Linklaters LLP
