Guidance on Collecting Social Insurance, Health Insurance, Unemployment Insurance, and Occupational Accident and Disease Insurance according to the Statutory Pay Rate of 2.34 Million VND/Month in Vietnam

Guidance on Collecting Social Insurance, Health Insurance, Unemployment Insurance, and Occupational Accident and Disease Insurance according to the Statutory Pay Rate of 2.34 Million VND/Month in Vietnam (Image sourced from the internet)

On July 04, 2024, Vietnam Social Security issued Official Dispatch 2156/BHXH-TST regarding the collection of social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance according to a statutory pay rate of 2,340,000 VND/month.

Guidance on Collecting Social Insurance, Health Insurance, Unemployment Insurance, and Occupational Accident and Disease Insurance according to the Statutory Pay Rate of 2.34 Million VND/Month in Vietnam

Based on the legal regulations on social insurance, health insurance, unemployment insurance, occupational accident, and disease insurance, Decree 73/2024/ND-CP stipulates the statutory pay rate and bonus policies for officials, public employees, and armed forces; Vietnam Social Security requests the social insurance agencies in provinces and centrally-controlled cities, the social insurance agency of the Ministry of National Defense, and the People's Public Security Force to implement the collection of social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance according to the new statutory pay rate (2,340,000 VND/month) from July 01, 2024, for the following groups:

- Participants in social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance who are subject to State-specified wage policies, and participants in social insurance with their wage as the basis for calculating contributions according to the statutory pay rate.

- Participants in voluntary social insurance choosing the highest monthly income as the basis for calculating voluntary social insurance contributions up to 46,800,000 VND.

- Participants in health insurance calculating health insurance contributions according to the statutory pay rate for groups: paid by the social insurance agency, funded by the state budget, partially subsidized by the state budget, participants in household health insurance, and paid by the employer.

Additionally, Vietnam Social Security assigns the Information Technology Center to promptly adjust and update the contribution management software to meet management requirements and provide technical support for units affiliated with Vietnam Social Security, provincial and centrally-controlled city social insurance agencies, the social insurance agency of the Ministry of National Defense, and the People's Public Security Force for timely implementation.

Highest Social Insurance Contribution Rate in 2024 in Vietnam

According to the regulations, there are currently two types of social insurance organized by the State: compulsory social insurance and voluntary social insurance. The contribution rates for these two types are as follows:

(1) Highest Contribution Rate for Compulsory Social Insurance:

According to Clause 1, Article 85 of the 2014 Social Insurance Law, monthly, employees participating in compulsory social insurance must contribute the following amount into the retirement and survivorship fund:

Compulsory Social Insurance Contribution = 8% x Monthly Salary Basis for Social Insurance Contribution

In which:

The highest Monthly Salary Basis for Compulsory Social Insurance = 20 x Statutory Pay Rate

From July 01, 2024, the statutory pay rate is adjusted from 1.8 million VND to 2.34 million VND, so the highest compulsory social insurance contribution will be determined as follows:

(2) Highest Contribution Rate for Voluntary Social Insurance:

According to Clause 1, Article 87 of the 2014 Social Insurance Law, employees participating in voluntary social insurance must contribute 22% of their chosen monthly income to the retirement and survivorship fund each month. The monthly income basis for voluntary social insurance contributions must be at least the poverty line for rural areas and at most 20 times the statutory pay rate.

Voluntary Social Insurance Contribution = 22% x Monthly Income Basis for Social Insurance Contribution

In which:

The highest Monthly Income Basis for Voluntary Social Insurance Contribution = 20 x Statutory Pay Rate

Thus, the highest voluntary social insurance contribution will be determined as follows:

Nguyen Ngoc Que Anh

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