Deductions from Employees' Monthly Wages

16:12, 10/07/2024

Salary is the amount of money that an employer pays to an employee for performing work according to an agreement; however, the monthly salary of the employee may be deducted by the following amounts.

1. Social Insurance Contribution

Pursuant to Clause 1, Article 85 of the 2014 Social Insurance Law, employees are required to contribute mandatory social insurance at the rate of 8% of their monthly salary for social insurance contributions.

2. Unemployment Insurance

Based on Point a, Clause 1, Article 57 of the 2013 Employment Law, employees must contribute unemployment insurance at the rate of 1% of their monthly salary for social insurance contributions.

3. Health Insurance

According to Point a, Clause 1, Article 13 of the 2008 Health Insurance Law and Point a, Clause 1, Article 7 of Decree 146/2018/ND-CP, the contribution rate for health insurance is 4.5% of the employee's monthly salary.

Of this, the employer bears 2/3 of the percentage (equivalent to 3%), and the employee bears 1/3 of the percentage (equivalent to 1.5% of their monthly salary for social insurance contributions).

4. Union Fees

In the case that an employee participates in a trade union, the monthly union fee contribution is 1% of the salary that is the basis for social insurance contributions, as stipulated in Article 23 of Decision 1908/QD-TLD.

5. Personal Income Tax

After deducting contributions for social insurance (BHXH), health insurance (BHYT), occupational liability insurance for certain professions, other deductions (such as family exemptions and charitable contributions), and tax-exempt items, employees are subject to personal income tax if their minimum monthly salary exceeds 9 million VND.

Duy Thinh

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