Executive Summary
Official Dispatch No. 1198/CTL&BHXH-BHXH identifies 14 bonuses, allowances and welfare payments that may be excluded from compulsory social insurance contributions when they are separately specified, welfare-related and paid based on actual circumstances rather than on a fixed or regular basis.
01. General Conditions
Separately specifiedThe payment should be clearly distinguished from salary in the employment contract or internal policy.
Welfare or support purposeThe payment should serve employee welfare, support or productivity-related objectives.
Based on actual circumstancesThe payment should arise from actual events or needs and should not be fixed or recurring.
Important: Renaming a salary-based payment as an “allowance” or “welfare benefit” does not change its legal nature. Salary-like payments may still form part of the compulsory social insurance contribution base.
02. The 14 Additional Payments
01
Bonuses under Article 104 of the Labor CodeBased on business performance and task completion.
02
Initiative bonusesFor recognized initiatives under internal rules, not regular payments.
03
Mid-shift meal allowanceBased on actual working days.
04
Vehicle allowanceFor roles requiring regular work-related travel.
05
Travel allowanceFor employees whose duties involve business trips.
06
Cell phone allowanceBased on actual business communication needs.
07
Lodging allowanceGranted only to eligible employees for a specified period.
08
Daycare allowanceFor employees with daycare-aged children.
09
Children-raising allowanceFor employees with legally eligible young children.
10
Bereavement supportPaid when the employee has a deceased relative.
11
Marriage supportPaid when the relevant family event occurs.
12
Employee birthday allowanceProvided on the birthday, not monthly.
13
Occupational accident hardship allowanceRequires complete accident documentation.
14
Occupational disease hardship allowanceRequires a legally recognized diagnosis.
03. Practical Application
| Payment type | Recommended application |
|---|---|
| Performance and initiative bonuses | Link the payment to business performance, task completion or recognized initiatives under written internal rules. |
| Meal, vehicle and travel allowances | Calculate based on actual working days or genuine job-related travel requirements. |
| Cell phone and lodging allowances | Apply only where there is an actual business need and a defined eligibility period. |
| Childcare and family support | Restrict payment to eligible employees and retain evidence of the relevant event or condition. |
| Occupational accident and disease support | Require complete accident records or a legally recognized occupational disease diagnosis. |
04. Supporting Documents Required
- Internal regulations on bonuses, allowances and welfare benefits.
- Employment contracts stating eligibility conditions and payment levels.
- Employee support request forms or meeting minutes.
- Documents proving the relevant event.
- Decisions and lists of eligible employees.
- Supporting payment documents.
05. Common Errors Leading to Social Insurance Arrears
Paid consistently in every payroll periodRegular and fixed payments may be recharacterized as salary.
No clear internal policyMissing written rules makes the welfare nature difficult to prove.
No eligibility conditionsPayments made uniformly to all employees create higher compliance risk.
Insufficient supporting documentsMissing evidence increases the risk of contribution reassessment.
Need support with payroll and social insurance compliance?
JPA Vietnam assists employers with payroll reviews, employee benefit policies, social insurance contribution assessments and supporting documentation.
