From July 1, 2019, changes to the salary used to calculate social insurance contributions that employees should be aware of

00:59, 11/07/2024

With the issuance and effect of Decree 38/2019/ND-CP on the statutory pay rate increase starting from July 1, 2019, the salary used for calculating social insurance contributions of employees will also see a significant change.

Entire Process and Documentation for Enjoying Latest Social Insurance Benefits

Article 89 of the 2014 Social Insurance Law stipulates that if the salary is more than 20 times the statutory pay rate, the monthly salary for social insurance contributions shall be equal to 20 times the statutory pay rate.

Decree 38/2019/ND-CP has just been issued with the provision to increase the statutory pay rate to 1.49 million dong, thus the maximum salary for social insurance contributions will also change significantly.

The maximum salary for social insurance contributions from July 1, 2019 = 1.49 million dong x 20 = 29.8 million dong (the current level is 27.8 million dong corresponding to the statutory pay rate of 1.39 million dong).

Based on the salary for social insurance contributions along with the deduction rates for social insurance funds, the monthly social insurance contribution of the employee can be calculated, in which the employee contributes 8% to the social insurance fund, 1% to the unemployment insurance fund, and 1.5% to the health insurance fund.

Duy Thinh

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