LE&TRAN.Labor.april.2018

©2018 LE & TRAN. All rights reserved. Attorney Advertising.
APRIL + MAY
2018
LABOR
LAW
REVIEW

CONTENT
Amending 03 important Decrees that guide the imple-
mentation of the Labor Code on salary, labor contracts,
labor discipline and implementation of regulations on
grassroots democracy at the workplace.
Is it advisable to expand the right of employers to unilat-
erally terminate the labor contract?
Labor Law (Drafted and Issued).
February 2018
3
9
11
2 © 2018 LE & TRAN

Amending
Important Decrees
that guide the
implementation
LABOR CODE on:
Salary
Labor contracts
Labor discipline
Implementation of
regulation on grassroots
democracy at the workplace
&
3
3© 2018 LE & TRAN

LEGAL INSIGHT
The Draft amends several provisions related to salary scales and tables, gradually reduces enterprise and labor norms and
aims to abolish State intervention in the creation of salary scales and tables. Instead, the State shall manage by common prin-
ciples and allow an enterprise independence in the creation and adjustment of salary scales and tables as well as labor norms
and organization which are compatible with production and market principles. Specifically:
1. For salary scales and tables, the Draft proposes an amendment of several principles in creating a salary scales and
tables as specified in Article 7, Decree No.49/2013/ND-CP, specifically:
a. As for the gap between two consecutive salary levels, the Draft provides two options:
The Draft Decree amending, supplementing several articles of Decree
No.49/2013/ND-CP dated May 14, 2013 which provides details for the
implementation of several provisions of the Labor Code concerning salary.*
b. As for the minimum salary rate for work or a job title that requires employees to go through training and apprentice-
ship, the Draft provides two options:
Option 1
To abolish the provision of a 5% minimal gap between
two consecutive salary levels.
Option 1
To abolish the provision of a 7% minimal gap between the
lowest salary rate for work or a job title that requires em-
ployees to go through training and apprenticeship and
the minimum regional salary rate; companies will only
need to ensure that the lowest salary rate for work or a
job title that requires employees to go through training
and apprenticeship shall be higher than the minimum
regional salary rates prescribed by the Government.
Option 1
To abolish the provisions of a 5% - 7% minimal gap be-
tween the salary rates for work or a job title which in-
volves heavy, hazardous or dangerous labor conditions
(or for work or a job title for work which involves espe-
cially heavy, hazardous or dangerous labor conditions)
and the salary rates for work or a job title of equivalent
complexity but with normal labor conditions.
Option 2
To retain the provision of a minimal gap between two
consecutive salary levels, but decreasing the gap from
5% to 3%.
Option 2
The minimal gap shall decrease from 7% to 5% between
the lowest salary rate for work or a job title that requires
employees to go through training and the minimum
regional salary rates prescribed by the Government;
this gap will only be applied to the elementary level and
its equivalents upward.
Option 2
To decrease the minimal gap from 5% down to 3% for
the salary rate for work or a job title involving heavy,
hazardous or dangerous labor conditions, or from 7%
down to 5% for work or a job title involving especially
heavy, hazardous or dangerous labor conditions com-
pared to salary rates for work or a job title of equivalent
complexity but with normal labor conditions.
c. As for the salary rate for work or a job title which is heavy, hazardous or dangerous and work which involves especially
heavy, hazardous or dangerous labor conditions, the Draft provides two options:
The above proposed amendment in the principles of creating salary scales and tables is to rectify an enterprises’ practical
difficulties and obstacles encountered throughout the application process, specifically:
- Principles for the gap between salary levels (minimum 5%) and between salary amounts of each specific job (jobs that
require trained labor, jobs with heavy, hazardous, dangerous conditions, etc.), have greatly affected enterprises’ policies
on salary and structure of salary scales and tables, and has been found not to be compatible with the market mechanism.
- Many enterprises create salary scales and tables by seniority (to ensure the minimum gap of 5%) which discourages re-
tention of long-term employees, i.e. seniors receive a higher salary, and the insurance fees are also higher (with the same
job, an enterprise has to pay employees of 15 – 20 years of seniority a salary and insurance amounts of approximately 2 – 3
4 © 2018 LE & TRAN

LEGAL INSIGHT
Salary payment by time shall be
based on the real working time of
months, weeks, days, hours;
Salary payment by products shall be
based on the labor norm and unit price
of the assigned product;
Salary payment by outsourcing shall be
based on quantity and the quality of the
work and the time needed for completion.
times higher compared to new employees). This phenomenon leads to enterprises unwilling to use senior employees,
laying them off to employ new people.
2. As for the creating of labor norms as prescribed in Article 8, Decree No.49/2013/ND-CP, the Draft clarifies that the
creation of labor norms is basically applied to the payment of salaries of employees who earn salaries by product.
This proposed amendment is to match the regulations on the method of salary payment stipulated in the Labor Code and in
Decree No.05/2015/ND-CP dated January 12, 2015. The 2012 Labor Code provided 03 methods of salary payment which con-
sisted of payments by time, product and outsourcing; on that basis the Government provided details in Article 22 of Decree
No.05/2015/ND-CP as follows:
Therefore, in practice an enterprise only provides the labor norms for jobs earning salary by product. For jobs earning salary by
time the enterprise shall determine the scale of the job, and for jobs earning salary by outsourcing it shall be determined by
the outsourcing norms. Concurrently, Decree No.49/2013/ND-CP provides principles to create a common labor norm, which
is not compatible with an enterprise’s methods of salary payment under the provisions of the 2012 Labor Code and Decree
No.05/2015/ND-CP. The current regulation makes it difficult for enterprises, because if they fail to create a labor norm applica-
ble to all employees with different methods of salary payment, the enterprise shall be sanctioned.
3. Regarding enterprises employing fewer than 10 employees, the Draft proposes an exemption from several admin-
istrative procedures to facilitate these enterprises, specifically:
a. Small enterprises shall be exempt from the procedure of submitting salary scales and tables and labor norms to the
state labor management agencies at the district level where enterprises locate their production facilities.
b. Small enterprises shall be exempt from the procedure of collecting the immediate higher-level trade union’s com-
ments upon creating, amending, or supplementing the salary scales/tables and labor norms if the enterprise has no
grassroots trade union.
(*): Click here to see the full contents of the draft (in Vietnamese).
5© 2018 LE & TRAN

The Draft amends several provisions related to the contents of
labor contracts such as the time calculations for severance al-
lowances and salary as well as expanding the employer’s labor
discipline rights. Specifically:
1. As for the contents of labor contracts stipulated in Arti-
cle 4, Decree No.05/2015/ND-CP, the Draft proposes ref-
erencing the internal policies of the employer (e.g. labor
regulations, collective labor agreement, employer’s reg-
ulations) instead of inserting mandatory details into the
labor contract concerning:
a. Regime for promotion of rank, level raises, and salary
raises (conditions, time, location, salary rate after the
level raise, salary);
b. Working time (working time in one day or, one week;
starting time and ending time of the working day or,
working week; number of working days in one week);
c. Break time (duration, starting time, ending time of
the break during working hours; period of weekly
leave, annual leave, holiday, new year leave, personal
leave, unpaid leave); and
d. Protective equipment for employees working in jobs
with dangerous or harmful conditions. (quantity, types
and useful life of personal protective equipments).
This proposal facilitates open negotiations during the creation
of the labor contract between the employer and the employee.
It also solves the “rigidity” of current regulations under which
the employer and the employee are required to include man-
datory provisions required by law in the labor contract. These
mandatory provisions are usually very long, detailed and spe-
cific, and contain some very technical contents (e.g protective
equipment). Further, these required provisions often already
exist in the labor handbook, collective labor agreement or the
employer’s policy. This proposal in the Draft also promotes
flexibility when parties amend or supplement the contract and
frees the parties from having to renegotiate and then write the
mandatory terms into the labor contract.
2. As for determining the time in which the employee has
actually worked for the enterprise when calculating sev-
erance allowances as stipulated in Article 14, Decree
No.05/2015/ND-CP, the Draft proposes that the follow-
ing periods of time shall NOT be considered as periods
in which the employee has actually worked for the em-
ployer:
a. Probationary period;
b. Period of apprenticeship and training in order to work
for the employer;
c. Period in which the employer sent the employee to
training without full-time salary; and
d. Period of leave with benefit of entitlement under the
provisions of the Law on Social Insurance (the period
in which the employee takes paid leave for maternity
or sickness above 14 working days shall not affect their
monthly salary but shall entitle the employee to social
insurance).
The reason for abolishing these periods of working time for cal-
culating severance allowance is that:
• During the periods of probation, traineeship, appren-
ticeship and period of paid leave under provisions of
the Social Insurance Regulation (the period in which
the employee takes leave for maternity or sickness
above 14 working days without paid salary but with
social insurance allowance), the employee shall not
be subject to the unemployment insurance contribu-
tion.
• Although employees taking leave for maternity, as
mentioned above, are not 15subject to the unem-
ployment insurance allowance, social insurance is to
be paid during this period. Previously, for the period
preceding the time when the 2013 Labor Law took ef-
fect, maternity leave was considered a time in which
unemployment insurance was paid under the 2006
Law on Social Insurance. Therefore, abolishing the
unemployment payment obligation during this peri-
od is compatible with principles of calculating sever-
ance allowance under the 2013 Labor Law (i.e. not in-
cluding the time in which unemployment insurance
was paid).
• These periods of leave are usually short (01 – 06
months), and upon calculation of the severance al-
lowance they are rounded to halves of a year, which is
difficult for employers. This also pushes the enterpris-
es’ expenses higher when severance allowance is paid
to employees, whereas for most of the actual working
period, the employees were already compensated
with unemployment insurance by the employer.
The Draft Decree amending and supplementing several Articles of Decree
No.05/2015/ND-CP dated January 12, 2015 which provides details and guides
the implementation of several provisions of the Labor Code.**
6 © 2018 LE & TRAN
LEGAL INSIGHT

3. As for the settlement of interests between employers and
employees upon termination of the labor contrac:
a. The Draft clarifies the benefits payable, whereby, in
addition to severance allowance, the parties must
settle the details regarding salary, social insurance
premium, compensation and other amounts related
to the interests of each party.
b. The Draft retains the time period of settlement to be
07 working days from the date of termination of the
labor contract and can potentially be extended up to
30 days in special cases. The draft also adds merg-
er, consolidation, division, separation of enterprises,
co-operatives, transfer of ownership and property use
rights under Article 45 of the Labor Code as consti-
tuting special cases in which the time for settlement
may be extended.
4. Regarding the salary used as the basis for calculating
payment to employees for work suspension, annual leave,
public holiday, paid leaves, salary advances and deduc-
tions, and compensation as stipulated in Article 26, De-
cree No.05/2015/ND-CP:
a. The Draft adjusts the salary used as the basis for cal-
culating payment to employees during annual leave
days in Article 111; the increments of annual leave
days according to an employee’s seniority in Article
112; public holidays in Article 115 and the paid leave in
Clause 1 Article 116 of the Labor Code, specifically ap-
plying the salary stated in the labor contract at the
time the employer calculates and remits payment
to the employee, instead of the salary stated in the
labor contract for the preceding month as in the cur-
rent regulations.
b. The Draft includes additional provisions on the salary
used as the basis for calculating sums of payment in
02 cases:
•• The salary used as the basis for calculating com-
pensation due to a violation of the regulations
concerning the time of prior notice when the
employer or the employee unlawfully unilaterally
terminate the labor contract (as stipulated in Ar-
ticle 42.5 and Article 43.2 of the 2012 Labor Code)
is the salary indicated in the labor contract at the
time the employer or the employee unlawfully
unilaterally terminate the labor contract.
•• The salary used as the basis for the employer to
calculate the payment of compensation, allow-
ances and salaries to employees who leave work
due to labor accidents or occupational diseases
(as stipulated in Article 38.10 of the 2015 Law on
Occupational Safety and Hygiene) is the salary in-
dicated in the labor contract at the time the em-
ployee leaves their work due to labor accident
or occupational disease.
5. For disciplinary dismissal of an employee who has been
absent from work without permission for a total of 05
incremental working days within 01 month (30 days) or
20 incremental days within 01 year (365 days) without
any plausible reason as stipulated in Article 30 and 31,
Decree No.05/2015/ND-CP, the Draft allows the employer
to shorten the procedure for labor discipline as follows:
a. A disciplinary hearing is allowed to be conducted after
01 written notice where one of the participants is ab-
sent, instead of 03 of written notices as in other cases.
b. The procedures for disciplinary dismissal may now be
conducted without having to wait until the end of the
month or the year.
This proposal is based on the fact that most employees spon-
taneously quit their job and never return to work and, there-
fore, never participate in the disciplinary hearing. As such, the
existing procedure for disciplinary hearings lengthens the time
of the process, affecting the enterprise’s production and busi-
ness.
On the other hand, an employee spontaneously quitting their
job is similar to cases where an employee unilaterally termi-
nates the labor contract unlawfully. However, these two cases
require different solutions. In fact, most enterprises will opt for
the scenario where the employee unilaterally terminates the
labor contract, so that they do not have to proceed to a discipli-
nary hearing for dismissal.
6. Regarding an employer’s authority to issue a disciplinary
decision concerning an employee, the Draft expands the
right to issue disciplinary decisions for all types of dis-
cipline to the person authorized to sign labor contracts,
instead of confining this to the person or committee in
the company that conducts disciplinary complaints as in
the current regulations. This proposal aims to streamline
disciplinary proceedings in enterprises, especially enter-
prises with many employees or with many business facili-
ties located in different localities. In addition, this amend-
ment is intended add flexibility and shorten the period for
labor discipline which will facilitate the production and
business operations of an enterprise.
(**): Click here to see the full contents of the draft (in Vietnamese).
7© 2018 LE & TRAN
LEGAL INSIGHT

legal insight
The Draft amends several contents related to the implementation of regulations on grassroots democracy at the workplace in a
flexible way and simplifies the procedure, providing enterprises decision-making power so as to guarantee its suitability with busi-
ness conditions. Specifically:
Draft Decree amending and supplementing several articles in Decree No.60/2013/
ND-CP dated June 19, 2013 which provides details for Clause 3, Article 63 of the Labor
Code concerning the implementation of regulations on grassroots democracy at
the workplace. ***
(***): Click here to see the full contents of the draft (in Vietnamese).
1. Abolishing the provisions for creating a Regular Dialogue
Regulation at the workplace and a Regulation for holding
an employee conference. The Draft provides that an en-
terprise need only create, issue and implement one Grass-
roots Democracy Regulation at the workplace instead
of creating 3 regulations as under the current provisions
(which are the Grassroots Democracy Regulation, the Reg-
ular Dialogue Regulation, and the Employee Conference
Regulation) which are overly burdensome to businesses.
The Grassroots Democracy Regulation at the workplace
must receive the opinion of the trade union before issu-
ance.
2. Abolishing the duty of creating a grassroots Democracy
Regulation at the workplace for enterprises employing
fewer than 10 employees. Accordingly, for these small busi-
nesses, depending on the actual conditions of the enter-
prise, the Draft only requires enterprises to retain and set
up several forms of grassroots democracy practices at the
workplace in order to promote and efficiently implement
the democratic rights of employees.
3. Providing guidance for the main contents of the Grass-
roots Democracy Regulation to assist the enterprise in the
creation of its regulation, including: (i) the purpose and re-
quirement; (ii) the contents of the grassroots democracy;
(iii) the methods of implementing the grassroots democ-
racy; and (iv) the parties’ responsibilities in the implemen-
tation of the grassroots democracy.
4. Simplifying the procedure for holding regular dialogues at
the workplace, e.g. (i) abolishing the requirement that an
employer has to issue a written decision on holding regular
dialogues at the workplace after the parties agree on the
contents, time, location, and participants, and (ii) abolish-
ing the minimum rate of attendance for members of each
party (i.e. two-thirds of each party’s representative mem-
bers). Also, the Draft provides that the term for submitting
the dialogue contents to the parties to the dialogue shall
be 15 days before a regular dialogue takes place.
5. Simplifying the procedures for holding employee con-
ferences by allowing enterprises to choose the time and
method of holding employee conferences (i.e. a collective
conference or a delegate conference), procedural rules,
number of delegates, methods of voting (in the case of a
delegate conference) and provisions in the Grassroots De-
mocracy Regulation at the workplace of the enterprise.
The Draft also abolishes the delegates’ responsibility for
disseminating the result and decision of the conference
to employees who did not attend the conference. Name-
ly, the employees from the offices, factories, or groups of
production that voted for the delegate to attend the con-
ference.
The Draft adds “salary and income reporting” and “award-
ing the individuals and collectives with outstanding results
in business and production” into the contents of employee
conferences.
6. As for information which employers are required to pub-
licize, as stipulated in Article 6, Decree No.60/2013/ND-CP,
the Draft provides that (i) employers shall publicize “targets
and missions of the business and production” of enterpris-
es, workshops, production teams and groups, which will
replace publication of “production and business plans” as
in recent regulations, and (ii) the provision for “publicizing
an enterprise’s annual financial information with contents
relating to employees” will be abolished.
7. The Draft abolishes such provisions as stipulated in Article
9, Decree No.60/2013/ND-CP, that allows employees to ex-
amine and supervise the implementation of production
and business plans of enterprises, divisions, departments,
workshops, production teams and groups.
8 © 2018 LE & TRAN

Is it advisable to expand
the right of employers
to unilaterally terminate
the labor contract
YES NO ?OR
9© 2018 LE & TRAN

LEGAL INSIGHT
Over the last few years, the Ministry of Labor – Invalids and Social Affairs has been in the process of amending the 2012 Labor
Code. One of the recent proposals for amendment, contained in the application file proposals of the 3rd Labor Code amend-
ment (see the details here), is to expand the employee’s right to unilateral termination of the labor contract. There are two
proposed alternatives:
If one of these two options is passed, it will greatly enhance the
rights of employees in the labor relationship.
However, the actual submitted document to the 3rd amend-
ment of the Labor Code does not mention these proposals
concerning expanding the employee’s right to unilaterally ter-
minate the labor contract. On the contrary, referring to the 2nd
Draft amendment of the Labor code (see the details here), the
2nd Draft proposes several adjustments to the unilateral termi-
nation rights of the employer. For example:
•• Supplementing several cases in which employers are al-
lowed to unilaterally terminate the labor contract, such
as: (i) when the employee has reached retirement age; (ii)
when the employee submits false information related to
identification upon signing the labor contract, which af-
fects the employer’s recruitment decision; (iii) when the
employee spontaneously leaves their job for 05 accumu-
lated days in 01 month or 20 accumulated days in 01 year
without proper reason.
•• Allowing the employer to unilaterally terminate the la-
bor contract earlier in the event that the employee has
received treatment for sickness or an accident, but has
not recovered their working capabilities. Specifically, this
applies to cases in which (i) an employee working under
a labor contract with indefinite term has received treat-
ment for 06 consecutive months (instead of 12 consecutive
months as in the current regulations) or (ii) an employee
working under a labor contract with definite term has re-
ceived treatment for 03 consecutive months (instead of 06
consecutive months as in the current regulations).
Until the 3rd detailed Draft is issued, it is not known whether
these changes in the unilateral termination rights of the em-
ployer will be approved. However, when assessing the matter
of expanding the employer’s rights in this area, from the per-
spective of the legislature and public policy, we can see that
the approval of additional unilateral termination rights for the
employer faces extreme difficulties. The reasons for this are:
a. Most employees in Vietnam can currently be classified as
common laborers (group 1), which means that their living
income is not high. It is possible that the unemployment
rate will increase following approval of a policy that allows
employers to more easily terminate labor contracts. Fac-
ing a higher unemployment rate, would the Government
have enough capabilities to deal with such a develop-
ment? In particular, would the State budget be sufficient
to support large numbers of unemployed laborers, and
would the police be able to handle the potential for in-
creased crime rates and social unrest? For this labor group
(group 1), their biggest concern is the very burden of daily
living expenses, not the laws or reasons behind the regu-
lations. Nor do they have enough financial capability to
afford the legal services provided by lawyers. Evidence of
this can be clearly seen in the unlawful strikes which often
occur at factories.
b. Apart from the common laborers, mentioned above, who
sign lawful labor contracts, there is still a massive group of
people who work as freelancers under no labor contract
(freelancers – group 2). This group not under control of the
labor law. If the State wishes to control this group and en-
courage greater social stability, there must be some way
for these people to easily participate in the lawful labor re-
lationship., As such, from the viewpoint of the Government
and in the interests of long term stability, the law must fa-
cilitate the rights of the laborer (to the detriment of em-
ployer rights). An easily observable example is the recent
rise of new business models like Uber, Grab, DeliveryNow,
etc. The great number of laborers participating in the
business networks of Uber, Grab, and DeliveryNow has re-
cently helped to reduce unemployment. Despite opinions
on whether the business of Uber, Grab, and DeliveryNow is
legitimate, the immediate benefit is that many people are
no longer unemployed. It is very difficult to create lawful
jobs for laborers, and it is even more difficult to convince
the laborers to participate in lawful long-term labor rela-
tions.
c. The remaining labor group is the group of office workers
(group 3) with a higher and more stable income than that
of the above two groups. This group is has enough edu-
cation to understand and obey the law, as well as protect
themselves under the provisions of the law. They usually
do not behave improperly or create any unrest in society,
so the State doesn’t need to be overly concerned about
this group. However, if group 1 and group 2 create social
unrest, group 3 will be greatly affected. Therefore, from the
Government’s viewpoint, the State needs to concentrate
on facilitating a better legal environment for the common
laborer (and tightening the legal rules for employers) in
order to better manage and stabilize the employment cir-
cumstances for groups 1 and 2.
And so, this is a very comprehensive answer as to why employ-
ers will likely not be granted greater legal advantages when it
comes to unilaterally terminating labor contracts..
Option 1: the employee will be allowed to lawfully ter-
minate the labor contract without specifying reasons,
with only the requirement to give advance notice.
Option 2: the employee will be allowed to lawfully ter-
minate the labor contract without specifying reasons
under the law and without providing advance notice
to the employer.
10 © 2018 LE & TRAN

LABOR LAW
DRATED LABOR LAW - FEBRUARY 2018
ISSUED LABOR LAW - FEBRUARY 2018
The Draft Circular amends several articles relating to:
•• The determination of profit targets when forming the planned average salary level, the average
salary level actually implemented to calculate the fund for planned salary, and the fund for actually
implemented salary.
•• The exclusion of objective factors when determining the fund for planned salary, the fund for the
actually implemented salary of an employee.
CONTENT
Draft Circular amending several articles in Circular No.37/2016/TT-BLDTBXH
dated October 25, 2016 guiding the management of employees, salary,
remuneration and bonuses in the Vietnam Asset Management Company.
STATUS: Collecting public’s comments from February 01, 2018 to April 01, 2018
Click here to see the full contents of the draft (in Vietnamese).
(1) This decree provides for:
•• The issuing and resolving of complaints which concern the decisions on, and the actions of la-
bor; vocational education; the action of sending Vietnamese employees to work overseas under
labor contract; employment; work safety and hygiene.
•• The denouncing and the resolving of denunciation over acts that violate the law by agencies,
organizations, and individuals in the field of labor; vocational education; the action of sending
Vietnamese employees to work overseas under labor contract; employment; work safety and
hygiene.
(2) The Decree’s provisions apply to:
•• Employees, trainees, and apprentices working for an employer; probationary workers, students
in vocational education facilities or in facilities with vocational education operations; employees
entitled to an unemployment insurance policy; Vietnamese employees working overseas under
labor contracts.
•• Employers.
•• Vocational education facilities, facilities with vocational education operations.
•• Enterprises or State enterprises that send Vietnamese employees to work overseas under con-
tract.
•• Job services organizations; organizations related to the activity of creating jobs for employees.
•• Organizations of assessment or that grant professional skills at a national level.
•• Other related agencies, organizations, individuals.
CONTENTS
Decree No.24/2018/ND-CP dated February 27, 2018 providing for the resolution
of complaints and denunciation in the field of labor, vocational education,
the action of sending Vietnamese employees to work overseas under labor
contract, employment, work safety and hygiene.
ISSUING DATE: February 27, 2018
EFFECTIVE DATE: April 15, 2018
12 © 2018 LE & TRAN

LABOR LAW
The circular promulgates the list of heavy, hazardous, and dangerous industries and professions at the
junior college level and college level as the basis for Ministries and local authorities to implement the
provisions in vocational education relating to industries and professions at the junior college level and
college level.
CONTENT
Circular No.36/2017/TT-BLDTBXH dated December 29, 2017 promulgating the
List of heavy, hazardous, and dangerous industries and professions at the junior
college level and college level.
The circular provides adjustment levels for salary and monthly income for which social insurance that has
been paid regarding the retirement schemes of employees participating in compulsory and voluntary
social insurance. Specifically:
(1) Adjusting the salary for which social insurance that has been paid:
(a) The circular provides adjustment levels for the salary for which social insurance that has been
paid, which are applicable to the 02 following objects:
•• Employees who contribute to social insurance under a salary scheme provided by the State,
who start their social insurance participation from January 01, 2016 onwards, who receive
lump-sum social insurance entitlement or die leaving their relatives entitled to a lump-sum
survivorship allowance between January 01, 2018 and December 31, 2018.
•• Employees who contribute to social insurance under a salary scheme decided by the em-
ployer, who receive lump-sum pension and allowance entitlement upon retirement, who
receive lump-sum social insurance or die leaving their relatives entitled to a lump-sum sur-
vivorship allowance between January 01, 2018 and December 31, 2018.
CONTENT
Circular No.32/2017/TT-BLDTBXH dated December 29, 2017 providing
adjustment levels for salary and monthly income for which social insurance
that has been paid.
Monthly salary for which SI
is payable after adjustment
in each year
= x
Total monthly salary for
which SI is payable in
each year
Adjustment levels
for salary for which SI
has been paid in the
corresponding year
ISSUING DATE: December 29, 2017
EFFECTIVE DATE: Ferbruary 12, 2018
(b) Monthly salary for which social insurance has been paid is adjusted according to the following
formula:
13© 2018 LE & TRAN

LABOR LAW
(2) Adjusting the income for which social insurance has been paid:
(a) The circular provides adjustment levels for monthly income for which social insurance has been
paid, applicable to voluntary social insurance participants who receive a lump-sum pension and
allowance upon retirement with a lump-sum social insurance entitlement or die leaving their
relatives entitled to a lump-sum survivorship allowance between January 01, 2018 and Decem-
ber 31, 2018.
(b) Monthly income for which social insurance is payable is adjusted according to the following
formula:
Therein, the adjustment levels for monthly income for which social insurance has been paid in
the corresponding year are implemented as follows:
Monthly income for
which voluntary SI is
payable after adjust-
ment in each year
= x
Total monthly income
for which SI is pay-
ment in each year
Adjustment levels for
monthly income for
which SI has been paid in
the corresponding year
Therein, adjustment levels for the salary for which social insurance has been paid in the corresponding year
are implemented as followed:
ISSUING DATE: December 29, 2017
EFFECTIVE DATE: February 15, 2018
IMPLEMENTATION DAY: January 01, 2018
14 © 2018 LE & TRAN

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