Vietnam: How much are social insurance premiums paid by employees and enterprises? What is the minimum wage as the basis for compulsory social insurance payment in 2023?
What does the monthly salary as the basis for compulsory social insurance payment in Vietnam include?
Pursuant to Clause 2, Article 17 of Decree 115/2015/ND-CP, the salary as the basis for compulsory social insurance payment is prescribed as follows:
- From January 1, 2018 onwards, the monthly salary as the basis for compulsory social insurance payment will be the salary plus salary-based benefit plus additional benefits mentioned in the employment contract as prescribed in the labor code.
- The monthly salary as the basis for social insurance payment applied to each enterprise management receiving salary prescribed in Point dd Clause 1 Article 2 of this Decree will be the salary decided by the enterprise, other than managers in state-owned single member limited companies.
From the above provisions, the salary as the basis for compulsory social insurance payment includes:
- Salary.
- Salary-based benefit.
- Additional benefits.
In addition, Clause 2, Article 6 of the promulgation process attached to Decision 595/QD-BHXH in 2017stipulates that the monthly salary as the basis for compulsory social insurance payment does not include other benefits such as:
- Bonuses are based on annual business results and the level of work performance of employees.
- Rewards for creative ideas.
- Payments for mid-shift meals.
- Subsidies on costs of traveling, calling, housing, child care benefits.
- Benefits provided upon the death or marriage of a worker’s relative, bonus upon the worker’s birthday, benefits for workers suffering from occupational accidents or occupational diseases.
- Other benefits and allowances recorded in separate sections in the employment contract.
How much are social insurance premiums paid by employees and enterprises in Vietnam?
Pursuant to Article 5 of the process attached to Decision 595/QD-BHXH in 2017 and Article 4 of Decree 58/2020/ND-CP on this content as follows:
The compulsory social insurance, unemployment insurance, and health insurance premiums payable by Vietnamese employees are prescribed as follows:
The compulsory social insurance, unemployment insurance and health insurance premiums payable by foreign employees are prescribed as follows:
Note: For enterprises operating in industries with high risk of occupational accidents or occupational diseases, if they have the written request and approved by the Ministry of Labor, Invalids and Social Affairs, they may contribute to the occupational accident or occupational disease benefit fund at the rate of (0.3%).
What is the minimum wage as the basis for compulsory social insurance payment in 2023?
Pursuant to Point 2.6, Clause 2, Article 6 of the process attached to Decision 595/QD-BHXH in 2017, the minimum wage as the basis for compulsory social insurance payment is as follows:
- The monthly salary as the basis for compulsory social insurance payment must not fall below the region-based minimum wage of the person holding the simplest position under working normal conditions.
- A person whose job or position requires training (including training provided by the employer) must be higher than the region-based minimum wage by at least 7%.
- The salary of a person working under strenuous, toxic or dangerous conditions must be higher by at least 5% than that of a person having a similar job or position under normal working conditions.
- The salary of a person working under extremely strenuous, toxic or dangerous conditions must be higher by at least 7% than that of a person having a similar job or position under normal working conditions.
Accordingly, in 2023, the minimum wage as the basis for compulsory social insurance payment in 2023 by month is as follows:
LawNet
