Sick Leave in Vietnam: Social Insurance Sickness Benefits Explained

Vietnam’s sick leave law provides employees with sickness benefits from the Social Insurance (SI) fund after the first day of illness. The employer pays salary for the first day, and the SI fund pays a benefit at 75% of the salary used for social insurance contributions from day 2. The system is governed by the Labour Code and the Social Insurance Law.

Key Takeaways

• Employers pay salary for the first day of illness
• Social Insurance pays sickness benefit at 75% of the SI salary from day 2
• A medical certificate from the SI-designated facility is required from day 1
• For occupational accidents, the rate is 100% from day 1
• The maximum benefit period depends on the contribution months

Vietnam’s Sick Leave Entitlement

Vietnam’s sick leave system operates under the Labour Code (2019) and the Social Insurance Law (2014). When an employee falls ill (non-work-related), the employer pays salary for the first day, and the Social Insurance fund pays a sickness benefit from day 2.

The entitlement is based on the employee’s social insurance contribution history. Employees with at least 12 months of contributions are entitled to the full benefit period. Those with fewer contributions receive a reduced entitlement.

For occupational accidents, the SI fund pays 100% of the SI salary from day 1, and the employer continues to pay the difference between the SI salary and the actual salary.

Who Pays for Sick Leave?

Period	Pay Rate	Who Pays
Day 1	100% of salary	Employer
Day 2+	75% of SI salary	Social Insurance Fund
Occupational accident	100% of SI salary from day 1	SI Fund + employer top-up

Sick Leave Pay Rates

Period	Pay Rate	Source
Employer period (day 1)	100% of salary	Labour Code
SI sickness benefit (day 2+)	75% of SI salary	Social Insurance Law
Maximum benefit (12+ months contributions)	30 days/year	Social Insurance Law
Maximum benefit (< 12 months contributions)	Reduced proportionally	Social Insurance Law

The SI salary is the salary on which social insurance contributions are calculated. It may differ from the employee’s actual take-home pay.

Medical Certificate Requirements

Vietnam requires a medical certificate from a SI-designated healthcare facility from the first day of illness. The certificate must be issued by a facility authorized by the Social Insurance agency.

The certificate specifies:

• The date of examination
• The expected duration of the absence
• The diagnosis

The employee must present the certificate to the employer, who uses it to process the SI claim.

How to Calculate Sick Pay in Vietnam

Example: An employee with an SI salary of VND 12,000,000/month and 15 months of contributions is off sick for 20 calendar days.

1. Employer period (day 1): VND 12,000,000 ÷ 30 = VND 400,000
2. SI benefit (days 2–20): 19 days
3. Daily SI benefit: VND 12,000,000 × 0.75 ÷ 30 = VND 300,000/day
4. SI payment: VND 300,000 × 19 = VND 5,700,000

Total paid to employee: VND 400,000 (employer) + VND 5,700,000 (SI) = VND 6,100,000

Contribution-Based Entitlement

The maximum sick leave days per year depend on the employee’s social insurance contribution history:

Contribution Period	Maximum Sick Days/Year
12+ months	30 days
6–11 months	15 days
3–5 months	10 days
Less than 3 months	Not eligible

This tiered system means new employees receive fewer paid sick days through SI.

Employer Obligations and Penalties

Vietnamese employers must:

• Pay salary for the first day of illness
• Process SI sickness benefit claims
• Maintain records for at least 5 years
• Register employees with the Social Insurance agency
• Cooperate with SI verification

Non-compliance can result in fines from the Ministry of Labour, Invalids and Social Affairs (MOLISA) and potential labour court proceedings.

Comparison With Other Countries

Country	Sick Days	Pay	Certificate Required
Vietnam	1 day employer + 30 days SI	100% / 75%	Day 1
UK	28 weeks SSP	£116.75/week	Day 7
Australia	10 days personal/carer’s leave	Full rate	2+ consecutive days
US	Varies by state	Varies	Employer policy

FAQ

What is the SI salary and how is it calculated?

The SI salary is the salary on which social insurance contributions are calculated. It is typically the employee’s basic salary plus regular allowances. It may differ from the employee’s actual take-home pay. The SI salary is used as the basis for calculating sickness benefits.

Can the employer require a medical certificate from a specific facility?

Yes. Vietnam requires a medical certificate from a Social Insurance-designated healthcare facility. Certificates from non-designated facilities may not be accepted for SI claims. The employee should check with the employer or SI agency for the list of designated facilities.

What happens if the employee has fewer than 12 months of contributions?

Employees with fewer than 12 months of contributions receive a reduced sick leave entitlement. Those with 6–11 months receive 15 days, those with 3–5 months receive 10 days, and those with fewer than 3 months are not eligible for SI sickness benefits.