Recently, the Government of Vietnam has issued Decree 141/2017/ND-CP regulating the increase of region-based minimum wages for 2018, effective from January 1, 2018. Therefore, the social insurance premium paid by employees from January 1, 2018, will be subject to change. To be specific:
Article table of contents
According to the provisions of Section 2.6, Article 6 of Decision 595/QD-BHXH, the salary serving as the basis for social insurance premium payment must not be lower than the region-based minimum wage at the time of payment for employees performing the simplest tasks or functions under normal working conditions.
The salary serving as the basis for social insurance premium payment of employees performing tasks or functions requiring training or vocational training (including employees trained by the enterprise itself) must be at least 7% higher than the region-based minimum wage.
|
Region |
Region-based minimum wage 2018 |
Lowest salary to participate in compulsory insurance |
|
|
For employees who have not undergone vocational training (doing the simplest job) |
For employees who have undergone vocational training (plus 7%) |
||
|
I |
3.980.000 |
3.980.000 |
4.258.600 |
|
II |
3.530.000 |
3.530.000 |
3.777.100 |
|
III |
3.090.000 |
3.090.000 |
3.306.300 |
|
IV |
2.760.000 |
2.760.000 |
2.953.200 |
Moreover, according to the provisions of the Social Insurance Law 2014, Employment Law 2013, and Decree 105/2014/ND-CP, the social insurance (SI), health insurance (HI), and unemployment insurance (UI) premiums based on the statutory minimum wage are as follows:
| Types of SI premiums | Rate (%) |
| SI | 8 |
| HI | 1.5 |
| UI | 1 |
| Total | 10.5 |
Therefore, the minimum social insurance premium for employees from January 01, 2018 is stipulated as follows:
| Region | Minimum SI premium of employees |
| I | 4,258,600 x 10.5% = 447,153 |
| II | 3,777,100 x 10.5% = 396,595.5 |
| III | 3,306,300 x 10.5% = 347,161.5 |
| IV | 2,953,200 x 10.5% = 310,086 |
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