Mandatory costs for employees under the laws of Vietnam
Employment related cost is always a fundamental part of corporate operational costs. Some of these employment related costs are mandatory. The following information will provide foreign investors with an overview of the basic costs of an employee in Vietnam. 1. Salary Basically, the salary of each employee is negotiated and agreed upon by both the employee and the employer, depending on the position, title, professional level, capacity of the employee. Nevertheless, the salary must not be lower than the regional minimum salary prescribed by the Government. The minimum salary level set forth in the table below is applicable on the basis of the locality where the employee works and for the untrained employees. The regional minimum salary for trained employees must be at least 7% higher than the one for the untrained employees. 2. Compulsory Insurance The employer and the employee are required to contribute to compulsory social insurance, health insurance and unemployment insurance funds....