Maximum Unemployment Insurance Contribution Rate for Employees in 2019

Clause 2, Article 58 of the Employment Law 2013 stipulates:

Employees contributing to unemployment insurance based on wage policies determined by the employer shall have their monthly wage for unemployment insurance contributions be the wage used as the basis for mandatory social insurance contributions in accordance with the provisions of the Social Insurance Law. If the monthly wage for unemployment insurance contributions exceeds twenty times the regional minimum wage, then the monthly wage for unemployment insurance contributions shall be equal to twenty times the regional minimum wage as stipulated by the Labor Code at the time of unemployment insurance contribution. Point a of Clause 1, Article 57 of the Employment Law 2013 states, "Employees contribute 1% of their monthly wage." The regional minimum wages for 2019 are stipulated in Clause 1, Article 3 of Decree 157/2018/ND-CP as follows:

- Rate of 4,180,000 VND/month, applicable to enterprises operating in Region I;

- Rate of 3,710,000 VND/month, applicable to enterprises operating in Region II;

- Rate of 3,250,000 VND/month, applicable to enterprises operating in Region III;

- Rate of 2,920,000 VND/month, applicable to enterprises operating in Region IV. Based on the above regulations, if the employee's wage used as the basis for unemployment insurance contributions exceeds 20 times the regional minimum wage listed below, the monthly wage for unemployment insurance contributions will be equal to 20 times the regional minimum wage. Specifically:*

- Region I = 20 x 4,180,000 VND = 83,600,000 VND => The maximum unemployment insurance contribution an employee in Region I can make is 1% x 83,600,000 VND = 836,000 VND/month

- Region II = 20 x 3,710,000 VND = 74,200,000 VND => The maximum unemployment insurance contribution an employee in Region II can make is 1% x 74,200,000 VND = 742,000 VND/month

- Region III = 20 x 3,250,000 VND = 65,000,000 VND => The maximum unemployment insurance contribution an employee in Region III can make is 1% x 65,000,000 VND = 650,000 VND/month

- Region IV = 20 x 2,920,000 VND = 58,400,000 VND => The maximum unemployment insurance contribution an employee in Region IV can make is 1% x 58,400,000 VND = 584,000 VND/month

The editorial board wishes to inform you!

Sincerely!