Payroll Journey - The Vietnam Style

Payroll Journey: The Vietnam’s Style

 

Free On-Demand Webinar | Vietnam | 18 May 2020, 3 – 3:45PM (ICT)

 

AYP Group and JuzTalent last and final Payroll webinar series happened on 18 May 2020, “Payroll Journey – The Vietnam’s Style”.

This was a 45 minutes webinar, a sharing session to almost 30 attendees who are either payrollers, HR personnel or attendees who would like to learn 
1. Vietnam’s Payroll rules and regulations (13th month bonus, overtime calculation, working hours, personal income tax (PIT) rate) 
2. Annual Income Reporting
3. Payroll Process Chart
4. How to process payroll within 10 minutes using JuzTalent

 

During the Vietnam’s ePayroll webinar, there was overwhelming of questions asked from the ground. As such, we have picked up Top 15 questions and written down the answers which you can also take it as a reference point: 

1. Is OT rate equal Tax + Non Tax? or how?
>> If you do 1 hour OT weekday (Friday) is computed as below: (Hourly rate * 150% * No of hours worked After 5PM to 10PM only)=> 100% is taxable and 50% is non-taxable. 

2. Can employer terminate employee during the probation period?
>> During the probation, each party is entitled to terminate the probation without prior notice and without compensation if the probation fails to satisfy the requirements agreed by both parties. 

3. Can the employee claim overtime if they sign a “full time employee” in the Labour Contract?
>> Employee will get pay for overtime working except we mention this” you will not be entitled to overtime pay as salaried full time employee” in the Labour Contract. 

4. How many percentage of salary does the employee receive during the probationary period?
>> The employee’s salary during the probation is agreed by both parties but must be at least 85% of the official salary. 

5. Is there any social insurance penalty in Vietnam if the employer pay late?
>> You will have to pay the interest for the total late of social insurance payment. (interest rate: 1,0666 x total of social insurance fund in month x total of month is being late). 

6. Can the employer able to sign a definite contract with a foreigner before obtaining a work permit? How long can the employer sign the contract with expat?
>> Before granting work permit, employer can not sign definite, indefinte labour contract with foreigner. After getting work permit employer can sign a Labour contract with foreigner and labour contract period will follows the period of work permit will be 2 years.

7. How many Annual leave days does employee eligible to get per year?

>> Twelve (12) working days/a year and add 1 more day for 5 more working years

8. How many people are there for dependent registration for personal income tax deduction? Any limit to?
>> No limit, you can register how many you want as long as your relative family is eligible to register

9. Can the employer able to sign a definite contract with a foreigner before obtaining a work permit? How long can the employer sign the contract with expat?
>> Before granting work permit, employer can not sign definite, indefinte labour contract with foreigner. After getting work permit employer can sign a Labour contract with foreigner and labour contract period will follows the period of work permit will be 2 years.

10. Does AYP also provide services for statutory submission/income tax filling?
>> AYP will incharge submit all standard reports such as: Social insurance, tax, labour. Client will incharge pay salary to your employee and pay personal income tax, social insurance, trade union fund to government’s account. 

11. What benefits can the employee get when they contribute social medical unemployment insurance?
>> Medical Insurance: The employee can get sick claim,child claim, maternity, paternity, convalesce benefits when they contribute a Medical Insurance.
>> Unemployment Insurance: Employee will get unemployement benefit if they are unemployee. contribute for full 12 months to full 36 months, you are entitled to 03 months of unemployment allowance, then for every 12 months of payment, you are entitled to an additional 01 month of unemployment allowance but for no more than 12 months.
>> For social insurance: Each year Employee will get 2 months of social insurance based on the salary they contribute in social insurance. You will get retirement fund when you pay full 20 years of insurance.”

12. If the employee receive NET salary? Do they need to deduct any statutory and tax ? Who will cover this for them?
>> Employer will cover to pay 10.5% social insurance and unemployment and personal income tax for employee. 

13. If company pay commission or any bonus after the employee left company? How many percentage of personal income tax is deducted?
>> Apply PIT rate: 10%

14. Is there any tax penalty applicable in VN in case of the employer don’t have their taxes submitted on time, or have taxes miscalculated?
>> Company will submit employee’s personal income tax under company’s tax code monthly (by 30 next monthly) or quarterly (by 30 of the first month of each quarter).
If company submit tax miscalculated, company can re-submit again after the deadline. No penalty for this case.
If company forget to submit tax report on time, company will pay penalty. The penalty depends on the total number of days of late payment. Minimum fine: 32USD and Maximum fine is 230USD.

15. Does Employer have to pay SIHIUI for full time foreign employee if we cover International standard healthcare insurance for them and agree to pay gratuity after 2 year contract completed?
>> For foreigner: after sign labour contract: Employee contribute MI 1.5% and ER contribute SI&MI 6.5%

Our Vietnam’s payroll powerpoint is also available for download >> AYP x JuzTalent – Payroll Journey – The Vietnam Style

If you have further questions pertaining to Vietnam’s payroll, tax, employment contract or how JuzTalent can assist, feel free to email us at either vn@ayp-group.com or sales@juztalent.com. We are here to help and we hope we can value-add you and your company in some ways. 

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