1. Increase the retirement age

Worker’s retirement age is expected to increase in 2021. From 01/01/2021, the worker's retirement age will be specified as follows:

• The mandatory retirement age of male and female workers or employees in normal working condition will be 60 years and 3 months, and 55 years and 4 months, respectively
• Every year following 2021, 3 months and 4 months will be added, respectively, to the retirement age of male and female workers and employees to reach their mandatory retirement age. Accordingly, retirement ages of employees in normal working conditions shall be gradually increased to 62 for males by 2028 and 60 for females in 2035.

2. Change in regulations on pension rates

- For male workers:

• In case of retirement in 2021: Get 45% with full 19 years of social insurance payment (currently retired in 2020 get 45% of the full 18 years of social insurance payment);
• In case of retirement from 01/01/2022: Get 45% with full 20 years of social insurance payment.
• After that, for each additional year, the employee will get an additional rate at 2%; the maximum entitlement pension rate (%) is up to 75%.

- For female workers: Get 45% with full 15 years of social insurance payment, for each additional year of paying social insurance will get an additional rate at 2%; the maximum entitlement pension rate is up to 75%.

3. Changes in the rate of entitlement to health insurance when taking medical examination and treatment

From January 1, 2021, in case the person having the health insurance card does not take health check up at the correct level of hospital which is paid by the health insurance fund at the rate specified in Clause 1, Article 22 of the Law on Health Insurance (the rate of entitlement to medical examination at the right level), such person will be paid according to the following rate below:

• At central hospitals: 40% of inpatient treatment costs;
• At provincial hospitals: 100% of inpatient treatment costs which is effective from January 1, 2021 with nationwide range (currently there is only 60% of inpatient costs are paid in accordance with the stipulated health insurance rate).
• At district hospitals: 100% of medical care costs.

Legal grounds:

- Article 169 of the Labor Code 2019.

- Article 56 of the Law on Social Insurance 2014.

- Article 22 of Law on Health Insurance 2008 (amended by the Law on Health Insurance 2014).

To get into details for specific cases, please feel free to contact us as at:

Unit 602A, Tower A, Handi Resco Office Building

521 Kim Ma Street, Ba Dinh District, Hanoi

Tel: + 84 24 3974 4181/ 4182

Fax: + 84 24 3974 3090

Email: service@s4b.com.vn

Resolution No. 116/2020/QH14 on reduction of Corporate income tax (CIT) payable in 2020 incurred by enterprises, cooperatives, non-business units and other organizations is adopted by the National Assembly on 19^th June 2020.

Resolution No.116/2020/QH14 applies to CIT taxpayers that are organizations engaged in production and trading of goods and services with taxable income in accordance with the Law on Enterprise income tax (hereinafter referred to as enterprises), including:

• Enterprises are established under the provisions of Vietnamese law;
• Organizations are established under the Law on Cooperatives;
• Non-business units are established under the provisions of Vietnamese law;
• Other organizations are established under the Vietnamese law and engaged in income-generating production and business activities.

Accordingly, the National Assembly has passed a decision to reduce 30% of CIT incurred by enterprises whose revenue in 2020 is less than VND 200 billion, regardless of small or large enterprises, domestic or foreign- invested enterprises. 

Enterprises shall themselves determine reduced tax amount in their quarterly tax periods of 2020 and make the tax accounting at the end of the year.

This Resolution shall take effect from August 3^rd, 2020, i.e. 45 days after the signing date (19 June 2020), just CIT calculation from quarter 3 FY2020 shall be entitled to such 30% reduction.

This Policy is only applied in 2020 exclusively.

To get into details for specific cases, please feel free to contact us as at:

Unit 602A, Tower A, Handi Resco Office Building

521 Kim Ma Street, Ba Dinh District, Hanoi

+ 84 24 3974 4181/ 4182

+ 84 24 3974 3090

service@s4b.com.vn