Average monthly wages in Vietnam grew by more than 10% last year, according to a government economic development report.
The country’s private sector experienced the highest level of salary growth, but employees of state-owned enterprises (SOEs) earned the largest average monthly wages overall. Foreign employers also continued to pay much higher salaries than the national average, reported Dezan Shira’s Vietnam Briefing.
Private sector workers earned the lowest average monthly wages in 2017 at VND 7.37 million (US$314), but they also grew the fastest at a rate of 15.1%. Among SOEs, the average monthly wage hit VND 11.01 million (US$469), an increase of 4.4% compared to 2016. Average monthly wages in foreign firms, meanwhile, grew by 6.2% to VND 9.04 million (US$386).
A separate report from HR consulting firms Mercer and Talentnet also revealed that the highest salary increases for 2018 were in the technology, life sciences, and chemical industries, while the lowest were in the education, financial services, and oil and mining sectors.
Meanwhile, the Vietnamese government has just approved a new Social Security Scheme for expatriate workers, which will come into force on 1 December 2018, according to Dezan Shira’s Vietnam Briefing. Both employers and employees will be expected to contribute to the scheme. The mandatory insurance package covers pensions, sickness and maternity leave, labour and occupational accidents, retirement and surviving relatives.
Employers will be required to make contributions for foreign employees at a rate of 3.5% of their monthly salary between 1 December 2018 and 31 December 2021. From 1 January 2022, the rate will increase to 17.5%, with 14% going towards retirement and surviving relatives, 3% towards sickness and maternity funds and 0.5% towards occupational disease and accident pots.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
OTHER ARTICLES THAT MAY INTEREST YOU
Meeting your payroll obligations in Vietnam
Women in the workforce in the ASEAN region
Vietnam to boost number of employer tax audits
Average monthly wages in Vietnam grew by more than 10% last year, according to a government economic development report.
The country’s private sector experienced the highest level of salary growth, but employees of state-owned enterprises (SOEs) earned the largest average monthly wages overall. Foreign employers also continued to pay much higher salaries than the national average, reported Dezan Shira’s Vietnam Briefing.
Private sector workers earned the lowest average monthly wages in 2017 at VND 7.37 million (US$314), but they also grew the fastest at a rate of 15.1%. Among SOEs, the average monthly wage hit VND 11.01 million (US$469), an increase of 4.4% compared to 2016. Average monthly wages in foreign firms, meanwhile, grew by 6.2% to VND 9.04 million (US$386).
A separate report from HR consulting firms Mercer and Talentnet also revealed that the highest salary increases for 2018 were in the technology, life sciences, and chemical industries, while the lowest were in the education, financial services, and oil and mining sectors.
Meanwhile, the Vietnamese government has just approved a new Social Security Scheme for expatriate workers, which will come into force on 1 December 2018, according to Dezan Shira’s Vietnam Briefing. Both employers and employees will be expected to contribute to the scheme. The mandatory insurance package covers pensions, sickness and maternity leave, labour and occupational accidents, retirement and surviving relatives.
Employers will be required to make contributions for foreign employees at a rate of 3.5% of their monthly salary between 1 December 2018 and 31 December 2021. From 1 January 2022, the rate will increase to 17.5%, with 14% going towards retirement and surviving relatives, 3% towards sickness and maternity funds and 0.5% towards occupational disease and accident pots.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
OTHER ARTICLES THAT MAY INTEREST YOU
Meeting your payroll obligations in Vietnam
Women in the workforce in the ASEAN region
Vietnam to boost number of employer tax audits
