From July 1, 2023, how much is the statutory pay rate in Vietnam? Will the rate of direct health insurance benefit payment increase when the statutory pay rate increases?
From July 1, 2023, how much is the statutory pay rate in Vietnam?
According to the provisions of Clause 2, Article 3 of Decree 38/2019/ND-CP on statutory pay rate for public officials and public employees and armed forces’ personnel as follows:
Statutory pay rate
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2. From July 1, 2019, the statutory pay rate is VND 1,490,000 per month.
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Clause 2, Article 3 of Decree 24/2023/ND-CP on prescribing statutory pay rate for officials, public employees and armed forces as follows:
Statutory pay rate
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2. From July 01, 2023, the statutory pay rate is VND 1.800.000 per month.
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Thus, the statutory pay rate applied until June 30, 2023 is 1,490,000 VND, from July 1, 2023, the statutory pay rate will be 1,800,000 VND, an increase of 310,000 VND/month.
From July 1, 2023, how much is the statutory pay rate in Vietnam? Will the rate of direct health insurance benefit payment increase when the statutory pay rate increases?
Vietnam: Will the rate of direct health insurance benefit payment increase when the statutory pay rate increases?
Article 30 of Decree 146/2018/ND-CP stipulates the rate of direct health insurance benefit payment as follows:
Rate of direct health insurance benefit payment
1. With respect to a patient seeking medical care at a district- or equivalent-level healthcare establishment without any health insurance-covered medical service contract (except that case in which he/she needs emergency care), he/she shall be entitled to payments as follows:
a) If he/she receives outpatient care services, he/she shall be entitled to health insurance coverage which is equivalent to the actual medical costs in the list of health insurance-covered costs with respective coverage rates in accordance with regulations in force, but is not 0.15 times greater than the base pay rate determined on the date of provision of medical services;
b) If he/she receives inpatient care services, he/she shall be entitled to health insurance coverage which is equivalent to the actual medical costs in the list of health insurance-covered costs with respective coverage rates in accordance with regulations in force, but is not 0.5 times greater than the base pay rate determined on the hospital discharge date.
2. In case where a patient receives inpatient care services at a provincial- or equivalent-level healthcare establishment without holding any health insurance-covered medical service contract (except the case in which he/she needs emergency care), he/she shall be entitled to health insurance coverage which is equivalent to the actual medical costs in the list of health insurance-covered costs with respective coverage rates in accordance with regulations in force, but is not 1.0 times greater than the base pay rate determined at the hospital discharge date.
3. In case where a patient receives inpatient care services at a central- or equivalent-level healthcare establishment without holding any health insurance-covered medical service contract (except the case in which he/she needs emergency care), he/she shall be entitled to health insurance coverage which is equivalent to the actual medical costs in the list of health insurance-covered costs with respective coverage rates in accordance with regulations in force, but is not 2.5 times greater than the base pay rate determined at the hospital discharge date.
4. In case where a patient receives medical services at a primary medical care service provider in breach of regulations laid down in clause 1 of Article 28 of the Law on Health Insurance, he/she shall be entitled to the health insurance fund’s coverage which is equivalent to the actual medical costs in the list of health insurance-covered costs with respective coverage rates, but is not 0.15 times greater than the base pay rate determined at the date of receipt of medical services with respect to outpatient care services, and is not 0.5 times greater than the base pay rate determined at the hospital discharge date with respect to inpatient care services.
Thus, the direct payment level of health insurance at medical examination and treatment facilities is specifically regulated as:
- For district-level medical examination and treatment facilities and equivalent:
+ Outpatient medical examination and treatment (except in emergency cases): Not more than 0.15 times the base salary at the time of medical examination and treatment;
+ Inpatient medical examination and treatment: Not more than 0.5 times the base salary at the time of discharge;
- For provincial and equivalent medical examination and treatment establishments:
+ Outpatient medical examination and treatment (except emergency cases): not more than 1.0 times the base salary at the time of discharge from the hospital;
+ Inpatient medical examination and treatment: Not more than 1.0 times the base salary at the time of discharge;
- Inpatient medical examination and treatment at central level medical examination and treatment facilities and equivalent: no more than 2.5 times the base salary at the time of discharge;
- Medical examination and treatment at the wrong place of initial registration but paid by the health insurance fund according to actual costs within the scope of benefits:
+ Outpatient examination (except emergency cases): Not more than 0.15 times the base salary at the time of medical examination and treatment;
+ Inpatient examination: No more than 0.5 times the base salary at the time of discharge.
Thus, the direct payment level of health insurance depends on the base salary, so when the base salary increases, the direct payment level of health insurance will also increase.
Vietnam: Will the health insurance premiums payable by the entities increase when the statutory pay rate increases?
According to the provisions of Clause 1, Article 18 of the Process attached to Decision 595/QD-BHXH in 2017, regulations on health insurance premiums and responsibilities of some subjects eligible for base salary increase are as follows:
Health insurance premiums payable by the entities specified in Article 13 of the Law on Health insurance and its instructional documents
1. Health insurance premiums in the cases specified in Point 1.1 and Point 1.2 Clause 1 Article 17 is 4.5% of the monthly salary, 3% of which is paid by the employer, 1.5% by the employee. The monthly salary as the basis for payment of social insurance is the monthly salary as the basis for payment of compulsory social insurance specified in Article 6.
Health insurance premiums in the cases specified in Point 1.4 Clause 17 Article 4.5% is 4.5% of the monthly salary plus (+) position allowance and seniority pay (for workers paid by the State) or 4.5% of the monthly salary under the employment contract (for workers paid by non-state employers), 3% of which is paid by the employer, 1.5% by the employee.
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Accordingly, the health insurance premium for individuals is calculated according to the following formula:
Health insurance premiums = 1.5% x monthly salary as the basis for payment of social insurance
In addition, Point e, Clause 1, Article 7 of Decree 146/2018/ND-CP stipulates the health insurance contribution rate of family-based insurance policyholders as follows:
Health insurance contribution rates and health insurance contribution responsibilities
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e) The health insurance contribution rate of those policyholders defined in Article 5 hereof shall be determined as follows: The first policyholder shall be required to pay 4.5% of the base pay rate; the second, third and fourth policyholder shall be required to pay 70%, 60% and 50%, respectively, of the contribution rate of the first policyholder; the fifth and subsequent policyholder shall be required to pay 40% of the contribution rate of the first policyholder.
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Accordingly, the health insurance contribution rate of family-based insurance policyholders is specifically regulated as follows:
- The first policyholder shall be required to pay 4.5% of the base pay rate;
- The second policyholder shall be required to pay 70% of the contribution rate of the first policyholder;
- The third policyholder shall be required to pay 60% of the contribution rate of the first policyholder
- The forth policyholder shall be required to pay 50% of the contribution rate of the first policyholder
- The fifth and subsequent policyholder shall be required to pay 40% of the contribution rate of the first policyholder.
Thus, when the statutory pay rate increases, the health insurance contribution rate increases accordingly.
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