This complete global solution for HR professionals combines custom research, strategic white papers, country primers, webinars, and the expert guidance you’ve come to expect from...
By Lien Hoang
Dec. 17—The threshold for employer liability for unemployment insurance has been lowered under legislation effective the first of the year, while other legislative changes have introduced ambiguity as to the cap for employer and employee health insurance contributions.
Under the Law on Employment, effective Jan. 1, 2015, businesses must start paying for unemployment insurance if they have employees with contracts of at least three months. Previously, insurance liability attached only to employers that had at least 10 workers under contracts valid for at least 12 months.
“This provision has broadened the range of participants,” Tran Nguyen Mong Van, tax senior manager at Grant Thornton in Ho Chi Minh City, told Bloomberg BNA.
The employer and employee each pay 1 percent of the worker's monthly salary up to a limit of 20 times the regional minimum wage. Companies must register with local social insurance agencies within 30 days of signing a work contract.
Also effective Jan. 1, changes to the Law on Health Insurance limit employer health insurance contributions to 4 percent of salary and employee contributions to 2 percent, although under earlier and still effective regulations contribution maximums were 3 percent for employers and 1.5 percent for employees.
“There still is confusion regarding this provision,” Van said, adding that “we expect that further guidance will be released in December or early January 2015.”
To contact the reporter on this story: Lien Hoang in Ho Chi Minh City at email@example.com
To contact the editor responsible for this story: Rick Vollmar at firstname.lastname@example.org
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)