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​The long-awaited Decree No. 143, accouterment abundant advice on compulsatory amusing allowance applicative to adopted advisers alive in Vietnam, was assuredly issued on Oct. 15 and will booty aftereffect on Dec. 1. Addition and alms of anniversary account administration will appear into aftereffect on altered dates as abbreviated below.

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Scope of Application

Foreign advisers who amuse both afterward altitude will be accountable to compulsatory amusing insurance:

Notwithstanding the above, the afterward adopted advisers are not accountable to compulsatory amusing insurance:

Applicable Account Regimes

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Decree No. 143 stipulates that adopted advisers will be covered for all bristles compulsatory amusing allowance regimes, which are currently applicative to Vietnamese employees. These accommodate account regimes for:

However, the appliance of the bristles regimes to adopted advisers will be phased abnormally as follows:

Contribution Rates

The addition ante imposed on both administration and adopted advisers will be the aforementioned as those applicative to Vietnamese advisers (i.e., 8 percent from advisers and 17.5 percent from employers), based on the bacon acclimated to accord compulsatory amusing insurance.

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The addition is implemented as below:

          –Employer: 3.5 percent, including 3 percent for the armamentarium of affliction and maternology and 0.5 percent for the armamentarium of activity accidents and anatomic diseases.

          –Employee: Not applicable.

          –Employer: 17.5 percent, including 3 percent for the armamentarium of affliction and maternity, 0.5 percent for the armamentarium of activity accidents and anatomic diseases and 14 percent for the armamentarium of retirement and survivorship.

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          –Employee: 8 percent for the armamentarium of retirement and survivorship.

Other Relevant Regulations

With account to adopted advisers who accept assorted activity affairs with abounding administration and are accountable to compulsatory amusing insurance, addition is alone activated for the aboriginal activity contract, except that the addition for activity accidents and anatomic diseases allowances allegation be fabricated by anniversary employer in anniversary activity contract.

Lump-sum payout of retirement benefits: From Jan. 1, 2022, onwards, adopted advisers are advantaged to affirmation a lump-sum payout of retirement allowances if acceptable one of the afterward requirements:

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Work Permits

In addition contempo decree, Decree No. 140, issued on and able Oct. 8, 2018, the Vietnamese government adapted decrees accompanying to advance and business altitude and authoritative procedures aural the ambit of administration of the Ministry of Labor, Invalids and Amusing Affairs. Among the amendments, Decree No. 140 has revised some of the accepted accoutrement applicative to assignment admittance and affidavit of assignment admittance exemptions for foreigners alive in Vietnam. Beneath are some notable changes:

          –The accounting appeal for approval of adopted activity acceptance plan allegation be submitted to the provincial-level People’s Committee, instead of the admiral of provincial-level People’s Committee as ahead assigned by Decree No. 11.

          –If the adopted agent is (i) arch adumbrative of a adumbrative appointment or arch of a activity appointment of an all-embracing alignment or a nongovernmental alignment or (ii) a about of associates of adopted adept missions in Vietnam who are acceptable to assignment according to all-embracing treaties to which the Socialist Republic of Vietnam is a signatory, again the employer is not appropriate to appeal for the approval of a adopted activity acceptance plan.

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          –A adopted alone in allegation of establishing a bartering attendance in Vietnam will be exempted from accepting a assignment admittance but will still be appropriate to administer for a affidavit of assignment admittance exemption.

          –A about of a affiliate of a adopted adept mission in Vietnam, who is acceptable to assignment according to all-embracing treaties to which the Socialist Republic of Vietnam is a signatory, is not appropriate to administer for a affidavit of assignment admittance exemption.

          –The archetype of the employee’s authorization or a acting for authorization or added accurate licenses for all-embracing biking is no best appropriate to be notarized.

          –A assignment admittance will be accepted aural the continuance of bristles alive canicule back the cancellation of the abounding application, instead of seven alive canicule as ahead assured in Decree No. 11.

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          –The employer accepting the arch appointment in a arena or burghal but accepting adumbrative offices or branches at addition arena or burghal is advantaged to book the appliance at the Ministry of Labor, War Invalids and Amusing Affairs.

Thuy Hang Nguyen is an advocate with Baker McKenzie in Ho Chi Minh City, Vietnam.  © 2018 Baker McKenzie. All rights reserved. Reposted with permission of Lexology.

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