The latest social insurance, health insurance and unemployment insurance contribution amount are paid according to Decision No. 595/QD-BHXH dated April 14, 2017 of the Vietnam Social Security.
Decision No. 595/QD-BHXH takes effect from May 1, 2017 and replaces Decision No. 959/QD-BHXH. The biggest change in Decision No. 595/QD-BHXH dated April 14, 2017 compared to Decision No. 959/QD-BHXH dated September 9, 2015 is:
- The latest insurance deduction rate table applied from June 1, 2017 is as follows:
| Contribution obligation
of each group |
Rate of deduction for compulsory insurance contributions | ||||
| SI | OA&DI | HI | UI | Total | |
| Company | 17% | 0.5% | 3% | 1% | 21,5% |
| Employee | 8% | 0 | 1.5% | 1% | 10,5% |
| TỔNG | 32% | ||||
| (Insurance contribution rate = Monthly salary as the basis for insurance contribution X Rate of deduction of insurance contributions) | |||||
| (According to Decision No. 595/QD-BHXH) | |||||
Note:
+ Monthly salary as the basis for contributing insurance: Please see details in Section II (below).
+ In addition to the compulsory insurance deductions mentioned above, enterprises must also pay union fees to the District Labor Confederation. Union fee contribution rate = 2% of the salary fund as the basis for paying social insurance for employees. (According to Decree 191/2013/ND-CP). Of 2% of this union fee, the enterprise must pay the full amount, the employee does not have to pay the union fee. But if employees join a union, they will have to pay union fees.
- Salary level for insurance participation in 2017: guided in Article 6 of Decision No. 595/QD-BHXH
- For the administrative and non-business sector: The salary is regulated by the State, the monthly salary on which the compulsory social insurance contribution is based is the salary according to the rank, grade, and military rank and position allowances, seniority allowances beyond the bracket, seniority allowance (if any). This salary is calculated on the base salary. (including the coefficient of difference reserved in accordance with the law on salary).
- For corporate sector: Salary is decided by the unit
+ From January 1, 2016 to December 31, 2017: the monthly salary for contribution of compulsory social insurance is the salary and salary allowance specified in Clause 1 and Point a, Clause 2, Article 4 of Circular No. 47/2015/TT-BLDTBXH.
+ From January 1, 2018 onward: the monthly salary for contribution of compulsory social insurance is the salary and salary allowance specified in Clause 1 and Point a, Clause 2, Article 4 of Circular No. 47/2015/TT-BLDTBXH and other additional amounts specified in Point a, Clause 3, Article 4 of Circular No. 47/2015/TT-BLDTBXH.
2.1. Allowances:
* Allowances that must be added to participate in compulsory insurance:
Salary allowances as prescribed at Point a, Clause 2, Article 4 of Circular No. 47/2015/TT-BLDTBXH are salary allowances to compensate for factors such as working conditions, job complexity, living conditions, the level of labor attraction that the salary agreed in the labor contract has not been taken into account or is not fully calculated such as allowances for positions and titles; responsibility allowance; heavy, hazardous and dangerous labor allowance; seniority allowance; regional allowance; mobile allowance; attraction allowance and allowances of a similar nature.
* Allowances not subject to compulsory insurance:
The monthly salary for contribution of compulsory social insurance does not include other regimes and benefits, such as bonuses as prescribed in Article 103 of the Labor Code, initiative bonuses; mid-shift meal; allowances for petrol, phone, travel, housing, child care, child rearing; support when employees have relatives died, employees have relatives getting married, employees’ birthdays, allowances for employees in difficult circumstances when suffering from occupational accidents, occupational diseases and other supports and allowances shall be recorded in separate sections in the labor contract according to Clause 11, Article 4 of Decree No. 05/2015/ND-CP.
2.2. Salary participating in social insurance:
Note-worthy points when determining the salary to participate in social insurance in 2017:
The monthly salary contributed for compulsory social insurance in 2017 is not lower than the regional minimum salary in 2017
+ The regional minimum salary in 2017 according to Decree 153/2016/ND-CP is as follows:
| REGION | Regional minimum salary in 2017
(applicable from January 1, 2017) |
Comparing with the regional
minimum salary in 2016 |
| Region 1 | 3.750.000 VND/month | Increase 250.000 VND/month |
| Region 2 | 3.320.000 VND/month | Increase 220.000 VND/month |
| Region 3 | 2.900.000 VND/month | Increase 200.000 VND/month |
| Region 4 | 2.580.000 VND/month | Increase 180.000 VND/month |
+ For employees who have undergone vocational training (including those trained by vocational enterprises), the salary contributed for compulsory social insurance must be at least 7% higher than the regional minimum salary, if they do heavy, hazardous or dangerous work then add 5%.
+ The monthly salary contribution for which compulsory social insurance is based must not be higher than 20 months’ basic salary. (The basic salary is the general minimum salary: Currently, the general minimum salary has increased: 1,300,000 VND/month according to Circular 02/2017/TT-BNV guiding the salary increase from July 1, 2017 according to Resolution 27/2016/QH14 on the state budget estimate for 2017 approved by the National Assembly on November 11, 2016.
* Highest salary to participate in insurance:
+ Social insurance and health insurance must not be higher than 20 times the general minimum salary
+ Unemployment insurance must not be higher than 20 times the regional minimum salary
Conclusion:
- Lowest salary to contributed in social insurance, health insurance, unemployment insurance in 2017
| Regional Enterprises | The lowest salary to participate in compulsory insurance
(SI, HI, UI) |
|
| For untrained workers (doing the simplest jobs) | For employees who have undergone vocational training (Must add 7%) | |
| Region 1 | 3.750.000 | 4.012.500 |
| Region 2 | 3.320.000 | 3.552.400 |
| Region 3 | 2.900.000 | 3.103.000 |
| Region 4 | 2.580.000 | 2.760.600 |
- Highest salary to participate in each type of insurance:
| Insurance type | Highest salary to participate in insurance by time | |
| Applicable from January 1, 2017 to June 30, 2017 | Applicable from July 1, 2017 | |
| Social insurance
and health insurance |
= 20 * 1.210.000 = 24.200.000 | = 20 * 1.300.000 = 26.000.000 |
| Unemployment insurance | = 20 * “Minimum salary of each region” | |
In 2018, the regional minimum salary will increase to 6.5% compared to 2017. From July 1, 2018, the general minimum salary will increase from 1,300,000 to 1,390,000: UPDATE ON MINIMUM SALARY IN 2018
III. A few notes that you need to pay attention to when paying for insurance:
- Employees who simultaneously have 02 or more labor contracts with different units shall pay social insurance and unemployment insurance according to the first signed labor contract, pay health insurance according to the labor contract with the highest salary, and pay occupational accident and occupational disease insurance according to each labor contract.
- Cases where social insurance contribution is not required:
+ Employees who do not work and do not receive salary for 14 working days or more in a month shall not pay social insurance for that month. This period is not counted to receive social insurance benefits.
+ Employees who take sick leave for 14 working days or more in a month in accordance with the law on social insurance are not required to pay social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance but still enjoy health insurance benefits.
- If the employee stops working in accordance with the provisions of the labor law but still enjoys salary, the employee and the unit shall pay social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance according to the salary the employee is entitled to during the period of cessation of work.
- If the employee takes maternity leave for 14 working days or more in a month, the unit and the employee are not required to pay social insurance, unemployment insurance, occupational accident and occupational disease insurance, this time is counted as the period of payment of social insurance, not calculated as the period of payment of unemployment insurance and the health insurance is paid by the social insurance agency for the employee.
The time off work for maternity benefits is recorded in the social insurance book according to the salary paid for social insurance of the month before taking leave to enjoy the maternity regime. In case the employee is entitled to a salary increase during the maternity leave period, it shall be recorded according to the employee’s new salary from the time of salary increase.
Employees who are doing heavy, hazardous or dangerous occupations or jobs or particularly heavy, hazardous or dangerous jobs on the list promulgated by the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Health or where there is a regional allowance coefficient of 0.7 or more, if they take leave and enjoy the maternity regime, the time off work and enjoy the maternity regime is counted as the time of doing heavy, hazardous, dangerous or especially heavy, hazardous, dangerous occupations or jobs or working in a place with a regional allowance coefficient of 0.7 or more.
– In case the labor contract expires while the employee is on leave to enjoy the maternity regime, the period of enjoying the maternity regime from the time of leaving the job to enjoy the maternity regime until the expiry of the labor contract is counted as the period of payment of social insurance, the time off from work to enjoy the maternity regime after the labor contract expires is not counted as the period of payment of social insurance.
– The maternity leave period of employees who terminate their labor contracts or quit their jobs before the time of giving birth or adopting a child under 6 months old is not counted as the period of social insurance payment.
– In case female employees go to work before the end of the prescribed maternity leave period, the period of enjoying the maternity benefits from the time they leave work until the time they go to work before the end of the maternity leave period is counted as the period of payment of social insurance, counting from the date of birth, from the time of going to work before the maternity leave expires, female employees and their units must pay social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance.
– In case the father or person directly fostering, the mother asking for surrogacy, the father asking for surrogacy or the person directly fostering enjoy the maternity regime without taking leave, the employee and the unit still have to pay social insurance, health insurance, unemployment insurance, occupational accident and disease insurance.
(According to Article 42 of Decision 595/QD-BHXH)