Only a few days remain until the advent of 2019. We invite esteemed members to join Thu Ky Luat in reviewing some notable changes regarding salaries, contribution levels, and social insurance benefits to be implemented in 2019 as detailed below.
Article table of contents
1. Increase in regional minimum wage for workers
The Government of Vietnam has issued Decree 157/2018/ND-CP which stipulates the regional minimum wage for workers employed under labor contracts in enterprises.
The regional minimum wage in 2019 increases by VND 160,000 - 200,000/month compared to the regional minimum wage in 2018.
The wage paid to workers will be adjusted to be higher than the regional minimum wage if the current wage is lower than the regional minimum wage.
The new regional minimum wage will be applied from January 1, 2019.
2. Increase in statutory pay rate for officials and public employees
The National Assembly has issued Resolution 70/2018/QH14 which stipulates the 2019 state budget estimate, adjusting the statutory pay rate from VND 1.39 million/month to VND 1.49 million/month.
The statutory pay rate is the basis for calculating the salary scale, allowances, pensions, and other benefits for officials and public employees.
This statutory pay rate will be effective from July 1, 2019.
3. Increase in salary used to calculate mandatory social insurance
According to the provisions of Decision 595/QD-BHXH of 2017, “the salary used to calculate social insurance contributions for employees in enterprises shall not be lower than the regional minimum wage at the time of payment for employees doing the simplest jobs or titles under normal working conditions.”
The 2019 regional minimum wage changes and increases; therefore, the salary used to calculate social insurance will also increase accordingly.
In addition, under this Decision, the salary for Vietnamese officials and public employees used to calculate social insurance contributions is based on the statutory pay rate. Therefore, when the statutory pay rate increases in 2019, the social insurance contributions for Vietnamese officials and public employees will also increase accordingly.
4. Increase in social insurance benefits
Due to the statutory pay rate change from July 1, 2019, various types of social insurance benefits calculated based on the statutory pay rate will also increase as follows:
- Increase in the benefit for convalescence and health rehabilitation after childbirth;- Increase in the one-time allowance after childbirth;- Increase in the benefit for convalescence and health rehabilitation after illness;- Increase in the minimum monthly pension;- Increase in the funeral allowance;- Increase in the monthly survivor allowance;- Increase in the occupational accident allowance.
>>> See details Increase in benefits policies of SSHI for workers from July 1, 2019.
- Ngoc Duyen -
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