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In the previous article, you have known about the procedure of applying and necessary documents for getting work permit for foreigner in Vietnam. In the second part of this article which assists foreigners in having profound knowledge about the Vietnamese working environment, you are provided with salary standards, allowances, and benefits if you are members of any Vietnamese enterprises.
Vietnam certainly creates a fair and dynamic business environment, hence you will be supported allowances like Vietnamese employees.
Salary standard and work permit for foreigner in Vietnam
The minimum wage for foreign workers is the same as the minimum wage for Vietnamese workers. From January 2020, minimum salaries will be increased as follows:
– Region I: VND 4,420,000 (increase of 5.7% from VND 4,180,000)
– Region II: VND 3,920,000 (increase of 5.7% from VND 3,710,000)
– Region III: VND 3,430,000 (increase of 5.5% from VND 3,250,000)
– Region IV: VND 3,070,000 (increase of 5.1% from VND 2,920,000)
Besides, overtime payment is also applied for foreigners. According to Article 98 of the Labour Code, an employee who works overtime will be paid an amount based on the piece rate or actual salary as follows:
– On normal days: at least 150%;
– On weekly days off: at least 200%;
– During public holidays, paid leave, at least 300%, not including the daily salary during the public holidays or paid leave for employees receiving daily salaries.
READ FURTHER: Payroll Guideline in Vietnam 2020.
Allowances and benefits for foreigners after getting the work permit
The government has issued labor regulations for foreigners while working in Vietnam with a view to ensuring benefits for overseas employees.
Insurance for foreigners after getting the work permit
Foreigners are eligible for health insurance and social insurance. Foreigners are required to participate in social insurance when they obtain work permits, practising licenses issued by the authorities in Vietnam, indefinite-term employment contracts or employment contracts valid for at least one year with employers in Vietnam. Social insurance for foreign workers includes sickness, maternity, occupational accident, disease, retirement, and funeral allowance benefits.
Tax exemptions
The tax paid by foreign workers can be reduced under circumstances:
– One-off relocation allowance for foreigners to relocate to Vietnam;
– Round-trip airfares paid once a year by employers for foreign employees who are on annual leave; and
– General education school fees or tuition paid by the employer for the expatriates’ children studying in Vietnam.
– Employee housing costs exceeding 15 percent of the total taxable income (excluding housing benefit from employers);
– Expenses for means of transportation for a group of employees to and from work;
– Training fee for employees relevant to employees’ profession and/or in accordance with the employers’ plan;
– Mid-shift meal allowances if the employers directly cater such meals for their employees;
– Presumptive expenditures for telephone, stationery, per diem, working outfit, etc. are not subject to tax if the amounts are within the levels set out under relevant regulations.
Severance Allowance
In case an employment contract is terminated as prescribed in Clauses 1, 2, 3, 4, 6, 7, 9 and 10, Article 34 of the Labor Code, the employer is responsible for paying severance allowance to the employee who has worked on a regular basis for a period of at least 12 months. Each year of work will be worth half a month’s salary, except for the cases in which the employee is entitled to receive a retirement pension.
Job-loss Allowance
According to Article 49 of the Labor Code 2012, the employer is responsible to give the redundancy pay to the dismissed regular employees that have worked for 12 months or more as prescribed in Article 44 and 45 of this Code. 1-month salary is paid for each working year but must not be lower than the salary of 02 months.
Work permit: Salary allowance (applied for State-owned company)
Allowance for workers in harmful or dangerous environments
According to Article 11 Circular 17/2015 / TT-BLĐTBXH, this allowance is applicable to employees working in jobs that involve heavy, hazardous, dangerous or extremely heavy, toxic or dangerous labor conditions. The company reviews and classifies working conditions as prescribed in Article 6 of this Circular, comparing the severity, severity and danger of occupations and jobs with normal working conditions to determine the allowance level.
This allowance is calculated at the same time as the monthly salary paid according to the actual time of doing heavy, hazardous and dangerous jobs. Working less than 4 hours a day is counted as 1/2 day, working from 4 hours or more, it is calculated all day.
Responsibility allowance
Responsibility allowance is applied to employees who do some work under management (such as team leader, deputy leader and similar title) or the job requires a higher responsibility than the responsibility calculated in the salary payroll (such as treasurer, storekeeper, cashier and similar titles). It is calculated in the same period of the monthly salary. When the job is not performed for more than 1 month, the responsibility allowance is not applied.
Traveling allowance
Mobile allowances are applicable to workers who have to frequently change working places and places of residence, such as constructing construction works; prospecting, searching and drilling minerals; topographic survey and measurement, cadastral survey, specialized construction survey, repair and maintenance of road and railway; dredging waterways works and jobs with similar conditions. Allowance is calculated at the same time as the monthly salary payment based on the actual number of working days.
Attraction allowance
Attracting allowances are applicable to workers who come to work in new economic zones, areas with exceptionally difficult living conditions, and works that need to be speeded up. Attraction allowance is calculated in the same period of monthly salary. The duration of implementation is from 3 to 5 years, depending on the conditions of the working area or the job and job applied.
Region allowance
Region allowance is applicable to employees working in areas where the State stipulates that officials and public employees working in this area are entitled to regional allowances. The list of geographical areas enjoying regional allowances is made in the Appendix attached to Joint Circular No. 11/2005 / TTLT-BNV-BLDTBXH-BTC-UBDT. It is determined by the employee’s workplace and calculated to be paid in the same period of the monthly salary. When not working at a region-based allowance for 1 month or more, no regional allowance is payable.
Position allowance
Position allowances are applied to the Head, Deputy Head in case the company prescribes the Head, Deputy Headto receive the professional salary, plus position allowance. It is paid in the same period of monthly salary payment. When the employee does not hold the position from 01 month or more, no position allowance is payable.
Other allowance with the work permit
The company can provide additional allowances, such as incentive allowances for employees to ensure time and labor norms, improve job performance skills, and long-term working with. company and other allowances in accordance with the characteristics, labor nature and actual requirements of the company after agreement with the owner.
Holiday leave
An employee shall be entitled to have days off fully paid on the following public holidays:
– Calendar New Year Holiday: one day (the first day of January of each calendar year);
– Lunar New Year Holidays: Five days
– Victory Day: 01 day (the 30th of April of each calendar year);
– International Labor Day: one day (the first day of May of each calendar year);
– National Day: 01 day (the second day of September of each calendar year).
– Hung Kings Commemoration Day (the 10th of March of each Lunar year)
In conclusion, this article provides you with the insight of salary standards and allowances and getting the work permit foreigner in Vietnam. If you have the intention of contributing your talent to our country, this article will help you be clear about your concern regarding your procedure, your salary, and your allowances. Hope that you will find helpful information in these two articles.
