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Vietnam Labour Law Update (October 2016)

Publication date

I.    Increasing payment for mid-shift meals:
On 1 September 2016, the Ministry of Labor – Invalids and Social Affairs issued Circular No. 26/2016/TT-BLDTBXH (“Circular 26”) providing guidance on the management of employment, salary and bonus for employees working under 100% state-owned one-member limited-liability companies. According to Paragraph 4 Article 22, Section 6 of Circular 26, the maximum payment for mid-shift meals for employees shall be increased from 680,000VND/person/month to no more than 730,000VND/person/month. Circular 26 shall take effect from 15 October 2016.

Companies should please note this change in order to apply the appropriate PIT maximum exemption of VND730,000/person/month for employees’ mid-shift meals from 15 October 2016 (in accordance with the tax exemption level provided in Item g.5, Paragraph 2, Article 2 of Circular No. 111/2013/TT-BTC issued on 15 August 2013).

II.    Application of new standard forms for Declaration of personal income tax as of September 2016:
On 24 September 2016, the General Department of Tax issued a Notification of the upgrade of HTKK application - version 3.4.0 in accordance with Circular No. 92/2015/TT-BTC (“Circular 92”) issued on 16 June 2015. According to the Notification, new forms of declaration and final returns of personal income tax (“PIT”) provided in Circular 92 were upgraded into the HTKK application 3.4.0 and were applied from September 2016. Old forms were changed in name or content in line with the new forms, therefore enterprises should please note this change in order to revise their tax reports from September 2016 accordingly.

New standard forms provided in Circular 92 include:

Forms Description

Declaration of personal income tax (“PIT”)

(By withholding organisations)


Declaration of PIT finalization

(By withholding organisations)


Appendix - detailed list of individuals who are under the progressive tax tariff

(Attachment of PIT finalization form No. 05/QTT-TNCN)


Appendix - detailed list of individuals who are under the partial tax rate (fixed rate)

(Attachment of PIT finalization form No. 05/QTT-TNCN)


Appendix - detailed list of dependents for family circumstances

(Attachment of PIT finalization form No. 05/QTT-TNCN)


Declaration form on PIT

(Applying for resident and non-resident taxpayers who declare directly to the Tax Department)


PIT finalization form

(Applying for individuals who have income from salaries and wages)


List of family circumstances deduction for dependents

(Attachment of PIT finalization form No. 02/KK-TNCN )


The detailed list of dependents who are supported directly by the taxpayer

02/UQ-QTT-TNCN Authorization form for PIT finalization
02/CK-TNCN Commitment letter
07/CK-TNCN Request for issuance of PIT receipt


III.    Guidance on employer-provided training fees:
According to Official Letter No. 3984/TCT/TNCN issued by the General Department of Tax on 31 August 2016 in responding to the Department of Financial Informatics and Statistics, for cases where the representative office provides training fees for refresher courses for employees, which are aligned to their professions or are in accordance with the plans of their employer, and the fees provided are supported by legitimate invoices, the fees shall not be included in the incomes for PIT purposes. For the amounts borne by the representative office which exceed the actual training fees incurred, the excess should be subject to PIT. 
IV.    Guidance on a number of issues related to the social insurance regimes of sick leave and maternity leave:
On 8 September 2016, the Ministry of Labor – Invalids and Social Affairs issued Official Letter No. 3432/LDTBXH-BHXH providing guidance on a number of social insurance regimes regulated in the Law on Social insurance 2014 (“OF 3432”).

Accordingly, OF 3432 guides the implementation of a number of regulations on sick leave and maternity leave as below:

-    For employees taking sick leave from 14 days onwards, the entitlement to sick leave benefits is calculated based on the salary subject to SI contributions in the month before the sick leave was taken. For cases where the employees are still on sick leave in the following months, the sick leave benefits are calculated based on the salary subject to SI contributions in the month before the sick leave began.

-    One-off paternity allowance is also applicable to cases where conditions for maternity benefits are not satisfied and where the father has contributed SI of six months or more within twelve months before the child’s birth.

-    For cases where only the father is subject to SI contributions, where the mother, after giving birth, is certified by a competent medical center as being incapable of taking care of the baby, the father is entitled to take leave until the child is 6 months old, regardless of the months of SI contributions.  

-    Male employee entitled to paternity leave (of 5, 7, 10, or 14 days) whose wives give birth, can take leave of more than one occasion, but the total days of leave must not exceed the regulated entitlement of leave. Regulated paternity leave for male employees is to be taken within the first 30 days from the day their wives give birth, and for cases where leave is taken on more than one occasion, the last day of leave must be used within 30 days from the day their wives give birth.

-    The maximum duration of leave for convalescence or health rehabilitation after maternity is regulated in Paragraph 2, Article 41 of the Law on SI and is calculated on the basis of calendar days, from 1 January to 31 December, including public holidays, new-year holidays and weekly days-off.


This is not a formal legal document.
All information in this document is for reference and general guidance purposes only.

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