Which amounts are directly deducted from teachers' salaries in Vietnam?
Which amounts are directly deducted from teachers' salaries in Vietnam?
Based on Point 1.1 Clause 1 Article 4 of the Procedure for collecting social insurance, health insurance, unemployment insurance, labor accident insurance, and occupational disease insurance; issuance of social insurance books and health insurance cards (Procedure) issued in conjunction with Decision 595/QD-BHXH of 2017, the regulations are as follows:
Subjects participating as stipulated in Article 2 of the Law on Social Insurance and guiding documents. To be specific:
- Employees who are Vietnamese citizens subject to compulsory social insurance participation include:
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1.3. Officials and public employees as specified in the laws concerning officials and public employees;
Based on Point 1.1 Clause 1 Article 5 of the Procedure issued in conjunction with Decision 595/QD-BHXH of 2017, which stipulates the contribution rates and responsibilities for paying social insurance, as follows:
Article 5. Contribution rates and responsibilities as per Article 85, Article 86 of the Law on Social Insurance and guiding documents. To be specific:
- Contribution rates and responsibilities of employees
1.1. Employees specified in Points 1.1, 1.2, 1.3, 1.4, 1.5, and Subsection b Point 1.7 Clause 1 Article 4 monthly contribute 8% of their monthly salary to the retirement and survivorship fund.
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Based on Point 1.2 Clause 1 Article 17 of the Procedure issued in conjunction with Decision 595/QD-BHXH of 2017, which stipulates the health insurance participation subjects, specifically as follows:
Subjects participating in health insurance as per Article 12 of the Law on Health Insurance and guiding documents. To be specific:
- Group paid for by employers and employees, including:
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1.2. Officials and public employees as specified by laws on officials and public employees.
Based on Clause 1 Article 18 of the Procedure issued in conjunction with Decision 595/QD-BHXH of 2017, which stipulates the contribution rates and responsibilities for paying health insurance as follows:
Contribution rates and responsibilities for health insurance of subjects according to Article 13 of the Law on Health Insurance and guiding documents. To be specific:
- Subjects in Points 1.1, 1.2, Clause 1, Article 17: the monthly contribution rate is 4.5% of the monthly salary, with the employer paying 3% and the employee paying 1.5%. The monthly salary used for health insurance calculation is the monthly salary used for compulsory social insurance according to Article 6.
For subjects specified in Point 1.4, Clause 1, Article 17: the monthly contribution rate is 4.5% of the monthly salary based on rank and allowances for position, seniority beyond framework (for employees implementing state wage policies) or 4.5% of the monthly salary recorded in the labor contract (for employees receiving wages as per employer regulations); of which, local police units contribute 3%, and employees contribute 1.5%.
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Based on Clause 1 Article 57 of the Law on Employment 2013, which stipulates the contribution rates, sources, and usage of the Unemployment Insurance Fund as follows:
Contribution rates, sources, and usage of the Unemployment Insurance Fund
- The contribution rates and responsibilities for paying unemployment insurance are as follows:
a) Employees contribute 1% of their monthly salary;
b) Employers contribute 1% of the total monthly salary fund of employees participating in unemployment insurance;
c) The state supports a maximum of 1% of the total monthly salary fund of employees participating in unemployment insurance, ensured by the central budget.
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Based on Clause 1, Article 26 of the Law on Trade Unions 2012, which stipulates trade union finances as follows:
Trade union finances
Trade union finances include the following revenues:
- Trade union fees paid by trade union members as per the regulations of the Vietnam Trade Union Charter;
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Thus, the amounts directly deducted from teachers' salaries include:
- Compulsory social insurance contributions. Teachers are responsible for contributing 8% of their monthly salary to the retirement and survivors' fund.- Health insurance contributions. Teachers contribute 1.5% of their monthly salary.- Unemployment insurance contributions. Teachers must contribute 1% of their monthly salary to unemployment insurance.- Trade union fees.
Which amounts are directly deducted from teachers' salaries in Vietnam? (Internet image)
Do teachers with monthly salary over 11 million in Vietnam have to pay personal income tax?
Based on Clause 1 Article 7 of Circular 111/2013/TT-BTC, which stipulates tax calculation bases for taxable income from business, salary, and wages as follows:
Tax calculation bases for taxable income from business, salary, and wages
Tax calculation bases for income from business and income from salary and wages are taxable income and tax rates. To be specific:
1. Taxable income is determined by the taxable income as guided at Article 8 of this Circular minus (-) the following deductions:
a) Family circumstance deductions as guided at Clause 1, Article 9 of this Circular.
b) Contributions to insurance, voluntary pension funds as guided at Clause 2, Article 9 of this Circular.
c) Charitable, humanitarian, and educational promotion contributions as guided at Clause 3, Article 9 of this Circular.
Based on Article 9 of Circular 111/2013/TT-BTC, which stipulates deductions as follows:
Deductions
Deductions as guided in this Article are amounts subtracted from taxable income before determining taxable income from salary, wages, and business. To be specific:
- Family circumstance deductions
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- Deductions for contributions to insurance and voluntary pension funds
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- Deductions for charitable, humanitarian, and educational promotion contributions
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Based on Point i Clause 1 Article 25 of Circular 111/2013/TT-BTC, which stipulates tax deduction and tax deduction documents as follows:
Tax deduction and tax deduction documents
1. Tax deduction
Tax deduction means the organization or individual paying income calculates the amount of tax payable and deducts it from the income before paying it to the tax recipient. To be specific:
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i) Tax deduction for some other cases
Organizations or individuals paying wages, remuneration, or other payments to individuals residing in Vietnam without a labor contract (as guided in Points c, d, Clause 2, Article 2 of this Circular) or with a labor contract under three (03) months with a total payment of two million (2,000,000) VND or more per time must deduct tax at the rate of 10% on the income before paying it to the individual.
If the individual has only one source of income subject to this tax deduction rate but estimates that their total taxable income after deducting family circumstances does not reach the taxable level, the individual with income may make a commitment (according to the form issued with tax management documents) and send it to the income-paying organization for temporary non-deduction of personal income tax.
Based on the individual's commitment, the income-paying organization does not deduct tax. At the end of the tax year, the income-paying organization must still aggregate the list and income of individuals not reaching the tax deduction level (in the form issued with tax management documents) and submit it to the tax authority. The individual making the commitment must take responsibility for their commitment; if fraud is detected, they will be handled according to the Law on Tax Administration.
Individuals making the commitment as guided here must have taxpayer registration and have a tax code at the time of making the commitment.
Therefore, teachers without dependents must pay personal income tax if their total income from salary and wages exceeds 11 million VND per month.
Note: The salary of teachers subject to personal income tax is the salary after deducting the following:
- Contributions to insurance, voluntary pension funds, charitable, humanitarian, and educational promotion contributions.
- Income exempt from personal income tax.
- Non-taxable income.
What is the retirement age for teachers in Vietnam in 2024?
Based on Clause 1 Article 46 of the Law on Public Employees 2010 stipulating pension policies in Vietnam:
Pension policies
- Public employees are entitled to pension as per the laws on labor and social insurance.
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Based on Article 169 of the Labor Code 2019, which stipulates the retirement age as follows:
Retirement age
- Employees who meet the conditions for the duration of social insurance contributions as per the laws on social insurance are entitled to a pension upon reaching the retirement age.
- The retirement age of employees under normal working conditions is adjusted according to the schedule until reaching 62 years for men in 2028 and 60 years for women in 2035.
From 2021, the retirement age of employees in normal working conditions is 60 years 03 months for men and 55 years 04 months for women; subsequently, each year the age increases by 03 months for men and 04 months for women.
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Therefore, the retirement age of teachers in 2024 in normal working conditions is as follows:
Male teachers: retirement age From 61 years old.
Female teachers: retirement age From 56 years 4 months.
Additionally, teachers can retire at a lower age than the above regulation but not more than 05 years if they are subject to an 81% or more reduction in working capacity; working in areas with especially difficult socio-economic conditions.
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