Navigating Vietnam's Sick Leave Regulations: A Guide for International Employers

As global expansion accelerates, Vietnam has emerged as a strategic destination for businesses seeking growth in Southeast Asia. However, navigating local labor laws, particularly sick leave policies, is crucial for compliance. SailGlobal provides expert insights to help multinational companies manage human resources effectively in Vietnam.

Annual Sick Leave Entitlement: Key Factors

Vietnam's Social Insurance Law (2014) stipulates that sick leave duration depends on work conditions and social insurance contribution history. For instance, an employee in standard conditions with under 15 years of contributions receives 30 days annually, while those in hazardous roles with over 30 years get 70 days. Cases like chronic illnesses may extend up to 180 days, with possible extensions based on insurance history.

Sick Leave Allowance Calculations

Allowances are calculated as a percentage of the social insurance salary from the previous month. Regular sick leave grants 75% of wages, while long-term treatment scales down to 50-65% based on contribution years. Special groups, such as military personnel, receive 100%. Daily rates are derived by dividing the monthly allowance by 24 days.

Employer Responsibilities During Sick Leave

Under Vietnam's Labor Code (2019), employers are not required to pay salaries during sick leave unless otherwise agreed. Income support is provided by Vietnam's social insurance system, reducing financial burdens on companies. For example, a manufacturing firm in Hanoi avoided penalties by adhering to this rule, fostering trust with local staff.

Best Practices for Compliance and Risk Management

To mitigate risks, businesses should: ensure transparent sick leave policies, maintain accurate social insurance records, and train managers on local regulations. SailGlobal recommends periodic audits to align with updates, as seen in a tech company that streamlined processes after a compliance review.

Vietnam Sick Leave Policy Guide for International Businesses | SailGlobal