From July 1, many payments and subsidies for workers will be adjusted to increase.

Mr. Le Dinh Quang - Deputy Head of the Legal Policy Department (Vietnam General Confederation of Labor) said that the 2014 Social Insurance Law stipulates that there are 11 points calculated based on the basic salary level.

Accordingly, when the basic salary increases from 1.49 million to 1.8 million VND/month, the allowance levels will increase accordingly.

Increase maternity benefits

Specifically, based on Clause 3, Article 41, Law on Social Insurance 2014 stipulates that in case of recuperation and health recovery after maternity leave: The level of benefit for recuperation and health recovery after maternity leave per day is equal to 30% of the basic salary.

Therefore, this benefit from July 1 will increase from 447,000 VND/day to 540,000 VND/day.

According to Article 38 of the 2014 Law on Social Insurance, female employees who give birth or employees who adopt children under 6 months old are entitled to a one-time subsidy for each child equal to 2 times the basic salary in the month the female employee gives birth or the month the employee adopts the child.

In case of giving birth but only the father participates in social insurance, the father will receive a one-time subsidy equal to 2 times the basic salary in the month of birth for each child.

Accordingly, the one-time subsidy for giving birth or adopting a child will be increased from VND 2,980,000 to VND 3,600,000.

Increase one-time subsidy, monthly subsidy

Article 46 of the 2014 Social Insurance Law stipulates that employees with a 5% to 30% reduction in working capacity are entitled to a one-time allowance.

With a 5% reduction in working capacity, the employee is entitled to receive 5 times the basic salary equal to 9,000,000 VND (currently 7,450,000 VND); then for every additional 1% reduction, the employee is entitled to receive an additional 0.5 times the basic salary (an increase of 900,000 VND).

Employees are also entitled to an additional allowance calculated based on the number of years of social insurance contributions. 1 year or less is calculated as 0.5 months, then for each additional year of social insurance contributions, 0.3 months of the social insurance salary of the month immediately preceding the leave for treatment is calculated.

According to Article 47 of the 2014 Social Insurance Law, employees with a 31% reduction in working capacity are entitled to 30% of the basic salary, then for each additional 1% reduction, they are entitled to an additional 2% of the basic salary.

Thus, workers with a 31% reduction in working capacity will receive a subsidy from 447,000 to 540,000 VND, then for every additional 1% reduction, they will receive an additional 36,000 VND (currently 29,800 VND).

The basic salary increased to 1.8 million VND, and allowances were also adjusted accordingly. Illustration photo: Vietnam Social Security.

Employees with a reduced working capacity of 81% or more, with spinal paralysis or blindness in both eyes, amputation or paralysis of both limbs, or mental illness, in addition to the benefits prescribed in Article 47 of the 2014 Law on Social Insurance, are also entitled to a monthly service allowance equal to the basic salary of 1.8 million VND (currently 1.49 million VND).

One-time death benefit due to work accident or occupational disease

Article 51 of the 2014 Social Insurance Law stipulates that if a worker dies from a work accident or occupational disease while working, or dies during the first treatment period due to a work accident or occupational disease, his or her relatives will receive a one-time allowance equal to 36 times the basic salary, an increase from VND 53,640,000 to VND 64,800,000 (an increase of VND 11,160,000).

Increase the level of allowance for convalescence and health recovery after treatment of injury or illness

According to Clause 2, Article 52 of the Social Insurance Law 2014, the level of benefits for recuperation and health recovery after treatment of injury or illness per day:

- Equal to 25% of the basic salary if resting and recovering at home. Thus, the benefit is 450,000 VND (currently 372,500 VND).

- Equal to 40% of the basic salary if resting and recovering at a centralized facility; the benefit is 720,000 VND (currently 596,000 VND).

Increase funeral and death benefits

In case an employee who is eligible for funeral benefits dies, the person in charge of the funeral will receive a one-time funeral benefit equal to 10 times the basic salary. Accordingly, the funeral benefit will increase from 14,900,000 to 18,000,000 VND.

Clause 1, Article 68 of the 2014 Law on Social Insurance stipulates that the monthly death benefit for each relative is equal to 50% of the basic salary (increased from VND 745,000 to VND 900,000); in case the relative does not have a direct caregiver, the monthly death benefit is equal to 70% of the basic salary, increased from VND 1,043,000 to VND 1,260,000.

Increase pension benefits for employees who have both compulsory and voluntary social insurance payment periods.

Article 71 of the 2014 Law on Social Insurance stipulates that employees who have paid compulsory social insurance for 20 years or more shall have their pension conditions and levels implemented according to the compulsory social insurance policy; the lowest monthly pension level is equal to the basic salary, except for the subjects specified in Point i, Clause 1, Article 2 of the 2014 Law on Social Insurance. Thus, the pension level will increase from 1.49 to 1.8 million VND.