Female workers are entitled to four to six months of maternity leave a year depending on the nature of their work. Those with babies under 12 months of age are also entitled to an extra hour off each day for nursing. These benefits allow female workers have more time to take care of their children and enhance gender equality.
Besides, Employers must pay 2% of an employee’s salary or wages to an authorized health insurance company for health insurance benefits, and the employee must pay 1% for the same.
Both Vietnamese and foreign invested enterprises must pay an amount equal to 15% of the wages and salaries of its Vietnamese employees to the social insurance fund. Of this amount, 10% is paid to the local labor office for employment benefits and the other 5% is paid to a social insurance fund established by the enterprise and jointly administered by the representatives of the enterprise. This fund is used to pay employee benefits related to sickness, work-related accidents, and occupational diseases as well as for maternity leave and benefits, child care and funeral expenses of workers who die during their term of employment at the enterprise. Foreign workers who have jobs in Vietnam are exempt from payment to the social insurance fund.
Employers are responsible for withholding 5% of each employee’s salary and paying such amount on their behalf to the local social insurance fund. This fund is used for 1) old age benefits, 2) benefits for those who are permanently disabled through work-related accidents or sickness, and 3) burial expenses related to the first two categories.
In the past, the Vietnamese government provided no unemployment benefits, but it’s different now when the government provide policy involved to unemployment tax.
Overtime policy for workers getting jobs in Vietnam
If the job so requires, and the worker agrees, the worker may work up to a maximum of four hours of overtime a day and 200 hours (or 300 hours in some special cases) a year. Employers must compensate workers according to overtime pay rates. Overtime during normal working days is paid at 150% of the normal rate, whereas those working night shift overtime must be paid at a minimum of 180%.
Workers working during weekends and on holidays without taking other days off are entitled to earn 200% and 300% respectively of the normal rate as well.
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