Hanoi-Vietnam: Does the increase in region-based minimum wages lead to increase in social insurance premiums?

Thu Hien

10:56, 11/07/2024

This is a query from Ms. Nguyen Thi Lien (email: nglienkt**@gmail.com) sent to Lawnet with the content: "I work at a shoe manufacturing enterprise in Ho Chi Minh City. My current salary as the basis for payment of social insurance premiums is 4,300,000 VND/month. So, does the increase in region-based minimum wages lead to increase in social insurance premiums?

Regarding your concerns, the Lawnet would like to share the following information:

According to Clause 2.6 Article 6 of Decision 595/QD-BHXH, the salary as the basis for payment of social insurance premiums for employees working in enterprises must not be lower than the region-based minimum wage at the time of payment for employees doing the simplest jobs under normal working conditions. For employees performing jobs or positions requiring trained or skilled employees (including those trained by the enterprise itself), the salary as the basis for payment of social insurance premiums must be at least 7% higher than the region-based minimum wage.

From 2019, the region-based minimum wages have been increased by 160,000 - 200,000 VND/month, the salary as the basis for payment of social insurance premiums will vary accordingly:

Unit: VND

	Region-based minimum wage in 2018	The lowest salary as the basis for payment of compulsory social insurance premiums		Region-based minimum wage in 2019	The lowest salary as the basis for payment of compulsory social insurance premiums
	Region-based minimum wage in 2018	Employees who have not been trained	Trained employees (+7%)	Region-based minimum wage in 2019	Employees who have not been trained	Trained employees (+7%)
Region I	3.980.000	3.980.000	4.258.600	4.180.000	4.180.000	4.472.600
Region II	3.530.000	3.530.000	3.777.100	3.710.000	3.710.000	3.969.700
Region III	3.090.000	3.090.000	3.306.300	3.250.000	3.250.000	3.477.500
Region IV	2.760.000	2.760.000	2.953.200	2.920.000	2.920.000	3.124.400

In your case, the current salary as the basis for payment of social insurance premiums is 4,300,000 VND/month. If you are classified as performing simple jobs (i.e., unskilled), your social insurance premium may not change. However, if you are classified as a trained/skilled employee, your social insurance premium will be increased.

Respectfully!

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