Decree 141/2017/ND-CP has just been issued stipulating an increase in the regional minimum wage from 180,000 - 230,000 per month starting from January 1, 2018. Therefore, the mandatory social insurance contributions of enterprises in Vietnam will also increase accordingly. For specific content, you can follow the article below.
Article table of contents
Based on Clause 2.6, Article 6 of Decision 595/QD-BHXH, the minimum wage for calculating the social insurance (SI) contribution in Vietnam is:
| Region | Minimum regional wage from January 1, 2018 Decree 141/2017/ND-CP | Lowest wage for compulsory insurance participation | |
| For unskilled labor (performing simplest tasks) | For skilled labor (7% additional) | ||
| 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 |
| Article 6. 2.6. The monthly wage for compulsory SI contribution specified in this Clause shall not be lower than the regional minimum wage at the time of contribution for employees performing the simplest tasks under normal working conditions. a) For employees performing tasks or holding positions that require trained labor, including laborers trained by the enterprise itself, the wage must be at least 7% higher than the regional minimum wage; |
According to Clause 2, Article 5, Clause 1, Article 18 of Decision 595/QD-BHXH; Point a, Clause 1, Article 3 of Decree 44/2017/ND-CP, and Point b, Clause 1, Article 57 of the Employment Law 2013, the specific SI contribution rates for enterprises in Vietnam are detailed in the table below:
| Enterprise SI Contribution Rates | |||||
| SI | Unemployment insurance | Health insurance | |||
| Retirement | Occupational accident | Sickness, maternity | |||
| 14% | 0.5% | 3% | 1% | 3% | |
| 21.5% | |||||
Thus, based on the aforementioned grounds, the compulsory SI contribution rates for enterprises from January 1, 2018, are specified as follows:
| Region | Compulsory SI contribution of enterprises |
| I | 4,258,600 x 21.5% = 915,599 |
| II | 3,777,100 x 21.5% = 812,076.5 |
| III | 3,306,300 x 21.5% = 710,854.5 |
| IV | 2,953,200 x 21.5% = 634,938 |
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