Quarterly Vietnam HR & Payroll Updates in July 2022.

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Quarterly Vietnam HR & Payroll Updates in July 2022

Each quarter, Acclime Vietnam releases our Quarterly HR & Payroll Updates focusing on relevant legislation and regulations, changes released in the previous quarter, Official Letters released by Vietnam Authorities, together with reminders for key dates for implementation of HR & Payroll changes coming into effect.

Decree 38/2022/ND-CP increasing the Minimum Monthly Wages by 6% and regulating Minimum Hourly Wages from 1 July 2022

On 12 June 2022, the Vietnamese Government formally approved the proposed increase of Minimum Monthly Wage by issuing Decree 38/2022/ND-CP detailing the increase, regulating Minimum Hourly Wage and listing the geographical areas applicable to each Minimum Monthly Wage level. The Decree takes effect from 1 July 2022.

Accordingly, Minimum Monthly Wages are increased at an average of 6% across the 4 regions.
Once the change is effective:

  • Employers should ensure that their staff are not paid less than the monthly minimums.
  • This increase also impacts the maximum cap for the monthly calculation of Unemployment Insurance for employer and employee portions. The maximum cap is 20 times the Minimum Monthly Wage of the Zone the employer is in.

Minimum Hourly Rate – new requirement and application

Another outstanding point of the Decree is the requirement on Minimum Hourly Wages which have not been clearly prescribed previously. The Minimum Hourly Wages are applicable to employees who apply the form of hourly wages.

Zone Minimum Hourly Rate (VND)
Zone 122.500
Zone 220.000
Zone 317.500
Zone 415.600

All employers should ensure their payroll software and internal calculations are updated for all pay runs after 1 July 2022.

For further information, please refer to our previous article on proposed increase to Minimum Monthly Wages here. In addition, we will also release a Client Alert detailing changes, implementation and impact of the changes of the Decree 38 to employers and employees in upcoming days, please stay tuned for the update.

Allowing experts and employees to temporarily stay in industrial parks for manufacturing and business purposes

On 28 May 2022, the Government issued Decree 35/2022/ND-CP on the management of industrial parks and economic zones. A highlight point of the Decree involves allowing experts and employees to temporarily reside in industrial parks. The Decree takes effect on 15 July 2022.

Temporary residence at accommodation premises in industrial parks

Accordingly, experts and employees are allowed to temporarily reside at accommodation premises in industrial parks to serve the production and business activities of enterprises following the below provisions:

  • For Vietnamese experts and employees, the temporary residence is to follow the Law on Residence.
  • For foreign experts and employees, the temporary residence is to follow the Law on entry, exit, transit, and residence of foreign individuals in Vietnam.

In addition, accommodation premises are required to be in the service land area of the industrial parks to ensure security and a safe distance from the environment according to the provisions of the Laws on construction and other relevant provisions as well as not affect the production and business activities in industrial parks.

Temporary residence at enterprises in industrial parks

In case of force majeure due to the direct impact of natural disasters, environmental disasters, fires, epidemics, wars, demonstrations, riots, or other emergencies, experts and employees are allowed to stay in an enterprise in an industrial park according to the following provisions:

  • Vietnamese experts and employees are allowed to stay at enterprises in industrial parks following the Law on Residence.
  • Foreign experts and employees are allowed to stay in the enterprise in the industrial park for less than 30 days. They also must make a temporary residence declaration following the Laws on entry, exit, transit, and residence of foreign individuals in Vietnam.

According to prevailing regulations, employees are not allowed to temporarily reside in industrial parks and export processing zones. In case of necessity, foreigners (including managers, executives, and experts) are allowed to reside in enterprises in industrial parks or export processing zones according to regulations of the People’s Committee of the province.

Reminder from the Department of Labour, Invalids and Social Affairs of Ho Chi Minh City to submit the report on employment of foreign employees

On 30 May 2022, the Department of Labour, Invalids and Social Affairs of Ho Chi Minh City (HCMC DOLISA) issued Official Letter 18502/SLDTBXH-VLATLD, reminding employers to submit reports on employment of foreign employees and foreign employee information collection forms.

Reports on employment of foreign employees

Although the deadline for the report on employment of foreign employees has passed, DOLISA reminded employers of the deadline and method to submit the semi-annual and annual reports following Decree 152/2020/ND-CP.

  • Reporting form: Form No. 07/PLI in Appendix I to Decree 152/2020/ND-CP
  • Deadline: by 4 July for semi-annual reports and by 5 January for annual reports
  • Submission method: online via the link: https://forms.gle/JKW4gGgKUQfsrJYcA or scan the QR code issued in the official letter.

Foreign employee information collection form

In addition, foreign employees (or enterprises employing foreign employees) are also required to submit a form providing information on working status according to form No. 03 issued in Circular 01/2022/TT-BLDTBXH. The submission period is from 1 June to 30 June 2022. Employers and employees can access this link https://forms.gle/haXiymPeuKLeGQPx8 or scan the QR code attached to the Official Letter to provide information and submit the form.

Instructions for submitting the report on labour change online

In addition to Office Letter 18502, HCMC DOLISA released additional Official Letter 18568/SLDTBXH-VLATLD dated 31 May 2022 on the implementation of Article 4 of Decree 145/2020/ND-CP dated 14 December 2020 on the employment report.

This Official Letter guides enterprises to submit online the periodic reports on labour change according to the provisions of Article 4 of Decree 145/2020/ND-CP as follows:

1. Online submission via the National Public Service Portal (https://dichvucong.gov.vn/)

  • The submission procedure is as follows:
      • Step 1: Access the Service Portal
      • Step 2: Select the item “Register for registration for adjustment of Social Insurance contributions and report on the use of employees”
      • Step 3: Select the reporting receipt agency
      • Step 4: Enter the declaration form and submit the file to the system.
  • Report form: follow the form at the Public Service Portal.
  • Deadline for submission is before 5 June for the 6-month-report and before 5 December for the annual report.

2. Direct submission to the Department of Labour – Invalids and Social Affairs

  • Report form: Form No. 01/PLI in Appendix I to Decree 145/2020/ND-CP
  • Deadline for submission: before 5 June for semi-annual reports, and before 5 December for annual reports. Specifically, the deadline for submitting the 2022 semi-annual report is before 15 June 2022.
  • Submission: online by accessing the link: https://forms.gle/5y7HZ8tS1oiHoiSc9

Electronic tax registration procedures for non-business individuals through the National Public Service Portal

On 16 May 2022, the General Department of Taxation issued Official Letter 1604/TCT-KK on the implementation of tax registration for the first-time registration and changing registration information of non-business individuals through the National Public Service Portal connecting the National Population Database.

Accordingly, the procedures for first-time registration on the Portal of the General Department of Taxation are as follows:

  • Step 1: Taxpayers using the granted account log in to the National Public Service Portal and select “First-time tax registration”
  • Step 2: The National Public Service Portal switches to the Portal of the General Department of Taxation.
  • Step 3: The Portal of the General Department of Taxation checks whether the taxpayer has a tax identification number:
      • If the taxpayer already has a tax code: Display “This object has been granted a tax code.”
      • If the taxpayer does not have a tax code yet: fields for first-time registration will be displayed for taxpayers to choose
  • Step 4: The Portal of the General Department of Taxation accesses the National Population
      • Database to query personal information and return results:
      • No data: Display notice “Personal information in the National Population Database is incomplete/invalid.” If the taxpayer enters the correct information and the portal does not have the information, taxpayers should update their information at the local police station.
      • Correct data: Display sample information 05-DK-TCT, go to step 5.
  • Step 5: Taxpayers check form 05-DK-TCT and supplement any missing information.
      • If the information on the declaration matches the personal information, go to step 6.
      • If the information does not match, report: “The taxpayer did not submit the application to the tax office and contact the commune/ward agency where the individual registered to permanently reside for instructions on adjusting the information”.
  • Step 6: The Portal of the General Department of Taxation checks the professional rules for information received from the National Population Database and taxpayer information.
  • Step 7: The Portal of the General Department of Taxation saves the form and automatically transfers the information to the TMS system as soon as the application is submitted successfully.

The deployment period is from 18 May 2022.

Guidance for implementing rent support policies for employees

On 21 April 2022, the Ministry of Labour, War Invalids, and Social Affairs issued Official Letter 1244/LDTBXH-VL on the implementation of Decision 08/2022/QD-TTg on implementing the policy of housing rental support for employees.

Following the Decision, the Department of Social Insurance of Ho Chi Minh City also released Official Letter 2219/BHXH-QLT guiding to confirm the list of employees requesting rent support according to this Decision.

Process of confirming the list of employees requesting rent support

Accordingly, the list of employees requesting rent support is required to be confirmed by the Department of Social Insurance of Ho Chi Minh City. The specific process is as follows:

  • The Department of Social Insurance will consider and confirm this List (Form No. 02, Form No. 03, Decision 08/2022/QD-TTg) within 2 working days if the information declared by the enterprise matches management data at the Department of Social Insurance. Otherwise, the Department will inform and request the enterprise to revise.
  • Form No. 02 can be confirmed monthly or in every 2 or 3 months.
  • Employees working under 2 or more labour contracts must submit forms at the enterprise that first participating of compulsory Social Insurance and receive support only once in 1 month and not more than 3 months.
  • Failure to confirm participation in compulsory Social Insurance if the employees taking unpaid leave, sick leave, maternity leave, or suspending the labour contract.

The deadline for submission is 15 August 2022.

Application form and method

Accordingly, employers can apply for rent support for their employees in the following forms:

  • Direct submission
  • Public postal service
  • Online submission

The district-level People’s Committees will base on the list prepared by employers and certified by the Social Insurance Agency according to form No. 02 and Form No. 03 (according to Decision 08/2022/QD-TTg) to appraise and submit the list and the funding support to the Provincial People’s Committee for approval.

Reminder of selected key regulations coming into effect in Quarter 3, 2022

RegulationsIssued dateEffective dateKey HR & Payroll items
Decree 38/2022/ND-CP increasing the Minimum Monthly Wages by 6% and regulating Minimum Hourly Wages12 June 20221 July 2022Mentioned above
Decree 35/2022/ND-CP on the management of industrial parks and economic zones28 May 202215 July 2022Mentioned above
Circular No. 78/2021/TT-BTC on using electronic PIT withholding certificate17 September 20211 July 2022

 

For more information on HR & Payroll Updates and other compliance requirements for businesses operating in Vietnam, follow our monthly releases on the website and social media channels at vietnam.acclime.com.

 

Last updated on July 7, 2022
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