What must an employer pay when a work accident occurs in Vietnam? Under Articles 38 and 145 of the Labor Code 45/2019/QH14 (as amended by Laws 71/2025 and 113/2025 — consult the latest consolidated text), employers must pay four groups of costs: medical expenses, salary during treatment, compensation scaled by the degree of working capacity reduction, and allowances where the accident was the employee’s fault.
The four cost groups employers must pay
1. First aid, emergency and medical treatment costs
The employer must cover all first aid, emergency and medical costs for the employee from first aid through to stable treatment.
2. Full salary during treatment
The employee receives full salary during treatment and functional rehabilitation after the work accident.
3. Compensation scaled by the degree of working capacity reduction
Compensation is scaled by the employee’s percentage of working capacity reduction: from 1.5 months’ salary (5% reduction) to 30 months’ salary (81% or more). The exact amount for each percentage must be checked against the detailed table in the latest Labor Code text.
4. Allowance when the employee was at fault
If the accident was caused by the employee’s fault, the employer pays an allowance instead of compensation — at least 40% of the corresponding compensation amount for that reduction rate.
Key distinction: “compensation” vs “allowance”
- Compensation: applies when the accident was the employer’s fault — higher amounts, on the 1.5 → 30 months’ salary scale.
- Allowance: applies when the accident was the employee’s fault — at least 40% of the corresponding compensation amount.
Mixing up these two concepts is a common mistake — employers must correctly identify the party at fault to apply the right payment.
Frequently asked questions
Must the employer keep paying salary while the employee is treated?
Yes. The employee receives full salary for the entire treatment and rehabilitation period.
What is the exact compensation for each reduction percentage?
The scale runs from 1.5 months’ salary (5%) to 30 months’ salary (81% or more); exact figures for each percentage must be taken from the detailed table in the latest Labor Code text.
If the employee was at fault, must the employer still pay compensation?
Not “compensation” but an “allowance” — at least 40% of the corresponding compensation amount.
Legal sources cited
- Labor Code 45/2019/QH14 — Articles 38 and 145 on employer payment obligations for work accidents;
- Laws 71/2025 and 113/2025 amending the Labor Code — consult the latest consolidated text to apply the exact compensation scale.
FLAT Law Firm advises businesses on labor law: handling work accidents, determining compensation/allowance liability and resolving labor disputes — contact our legal team.
Transparency note: This article was drafted by AI and reviewed by the AI QA Council — it is not advice from a human lawyer.
Disclaimer: The information in this article is for reference only and does not constitute legal advice. Labor law may be amended; you should verify the current legal texts or consult a lawyer before applying them.
Legal content reviewed by the FLAW AI Legal Council and submitted to the owner for approval; not a practicing lawyer’s opinion, not a substitute for legal advice on a specific matter.