Each quarter, Acclime Vietnam releases our Quarterly HR & Payroll Updates focusing on relevant legislation, regulations, and 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 or upcoming reporting obligations to authorities.
Increase to the Minimum Basic Wage from 1 July 2023
Following the Resolution of the National Assembly on 11 November 2022 regarding the increase of the Minimum Basic Wage (base salary) from 1 July 2023, on 14 May 2023, the Government officially issued Decree 24/2023/ND-CP providing details.
Accordingly, the Minimum Basic Wage was raised to 1.8 million VND/month, an increase of 20.8% compared to the current basic wage of 1.49 million VND/month. The change took effect from 1 July 2023 and results in an increase in the maximum caps for calculating Social Insurance and Health Insurance payments, and consequently increasing the potential payments by employees and employers for these insurances.
We have also released a detailed practical guide for employers on this and how it impacts salary (insurance) payments recently, please click here for your reference.
Extension of payment deadlines for PIT and other kinds of tax in 2023
Decree 12/2023/ND-CP (Decree 12) was issued by the Government on 14 April 2023, extending the deadline for paying PIT, VAT, CIT, and land rental. Specifically, the payment deadline for PIT of business households/ individuals in 2023 is extended by 30 December 2023.
Applicable entities under Decree 12 include enterprises and business households or individuals that manufacture or operate businesses in certain industries/economic sectors, and small and micro enterprises.
Certain industries/economic sectors include below:
- Agriculture, forestry, and fishery
- Food processing and production of textiles, apparel, leather, wood, paper, rubber and plastic, metal, electronic appliance, computer, and optical products; automobiles etc.
- Publishing; cinematography; television program, audio recording, music production
- Crude oil and natural gas mining
- Drink production; printing, copying records of all kinds; coke and refined petroleum product manufacturing; chemical and chemical product manufacturing; etc.
- Water drainage and wastewater treatment
*Operating business in:
- Transport and storage; accommodation and food and drink; education and training; medical and social assistance; real estate trading
- Labour and employment services; operation of travel agents, tour operators, and services assisting, relating to advertisement and organisation of travel tours
- Composing, artistic and recreational activities; operation of libraries, archives, museums, and other cultural activities; sports and recreational activities; movie screening
- Radio and television broadcasting; computer coding, consulting services, and other activities relating to computers; communication operations
- Services assisting mining operations
Salary for Social Insurance contribution in 2023
On 28 April 2023, Ho Chi Minh City Social Insurance (SI) issued Official Letter 1952/BHXH-TST guiding on the salary used as a basis for SI contribution decided by the enterprise as follows:
1. Salary for SI contribution of employees, includes:
- Salary stated in the labour contract
- Salary allowances
- Additional amounts that can be determined specifically along with the salary agreed in the labour contract and paid regularly in each salary payment period from 1 January 2018.
2. Monthly salary for SI contribution does not include initiative bonus, mid-shift meal, allowances for petrol, phone, travel, housing, childcare, child rearing and other specific allowances separately mentioned in the labour contract.
3. Monthly salary for SI contribution of the enterprise’s manager is decided by the enterprise.
4. Monthly salary for SHUI contribution is not lower than the minimum monthly wage at the time of payment to employees who do the simplest job/ position under normal working conditions.
5. Monthly salary for contribution of SI, Health Insurance and Occupational Accident and Disease Insurance is not exceeding 20 times of monthly basic salary. And monthly salary for contribution of Unemployment Insurance is not exceeding 20 times of minimum monthly wage.
A new process for labour policy registration in Ho Chi Minh City from 28 March 2023
On 28 March 2023, the People’s Committee of Ho Chi Minh City issued Decision 1067/QD-UBND promulgating a new process for registering labour policies in Ho Chi Minh City. In accordance with the new procedure taking effect from 28 March 2023, an application to be submitted to the authority is to include the following:
- Written request for registration of the labour policy (1 original)
- Supporting documents in relation to labour discipline and material responsibility of the enterprise (1 original)
- Written comments of the grassroots Trade Union (1 original)
- Labour policy (2 originals)
In addition to the form of direct submission at the authority’s office, the applications can be submitted online at the Public Service Portal https://dichvucong.hochiminhcity.gov.vn.
Updates to the methods for Unemployment Insurance contribution and new forms for Social Insurance
Decision 490/QD-BHXH released by Vietnam Social Insurance on 28 March 2023, taking effect from 1 April 2023, updates the methods of Unemployment Insurance (UI) contributions and updates forms for Social Insurance (SI), Health Insurance (HI) and UI. Under this decision:
- All employers are required to pay UI and deduct from employees salaries to contribute at the same time to the UI Fund on a monthly basis. (Previously, there were some cases where employers were allowed to deduct UI every 3 or 6 months).
- 18 forms for SI, HI, UI under previous Decision 595/QD-BHXH in 2017 are waived.
- 28 new forms for SI, HI and UI were introduced
Official Letter Released
Official Letters are releases showing the interpretation and application of Vietnam’s Taxation Laws by applicable authorities, providing guidance to enterprises and individuals in Vietnam. In this update, we will focus on Official Letters indicating HR & Payroll matters.
Vietnam to implement tax collection by payable ID numbers
On 24 April 2023, the General Department of Taxation of Vietnam promulgated Official Letter 1483/TCT-KK on tax collection by payable ID numbers.
According to the Official Letter, starting from 10 May 2023, the web portal of the General Department of Taxation of Vietnam, including eTax service and eTax Mobile, will be upgraded to allow taxpayers to:
- Track their tax obligations
- Arrange the payment order according to the Law on Tax Administration
- Prepare state budget payment records by payable ID numbers and trace and adjust information on state budget payments by payable ID numbers.
To implement Circular 19/2021/TT-BTC, the General Department of Taxation of Vietnam guides the tax collection and other state budget revenues by payable ID numbers collected by tax authorities as follows:
- Provide payable ID numbers for taxpayers and notify them of such numbers
- Provide information on payable ID numbers for organisations cooperating in the collection
- Provide instructions on how to use payable ID numbers
Reminder of selected key regulations coming into effect in Quarter 3 of 2023
|Effective date||Key HR & Payroll items|
|Decree 24/2023/ND-CP on increase to Minimum Basic Wage from 1 July 2023||14 May 2023||1 July
|The “base salary” will be increased from 1.49 to 1.8 million VND/month as mentioned above|
Reminder of upcoming periodical reports in Quarter 3 of 2023
|Upcoming Periodical Reports||Deadline|
|Semi-annual Report on Labour Accidents 2023||5 July 2023|
|Semi-annual Report on Employment of Foreign Employees 2023||5 July 2023|
|Monthly Report on Labour Change in July 2023||3 August 2023|
|Monthly Report on Labour Change in August 2023||3 September 2023|
|Monthly Report on Labour Change in September 2023||3 October 2023|
|PIT Declaration in Quarter 2, 2023||30 July 2023|
|Report on Using PIT withholding certificate in Quarter 2, 2023||30 July 2023|
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.