How does the amount of social insurance and health insurance contributions change from July 01, 2019?

1. Increase in the Maximum Wage for Social Insurance Contribution

According to Article 89 of the 2014 Social Insurance Law, the maximum wage used to calculate social insurance (SI) contributions is 20 times the statutory pay rate. Therefore, the maximum wage used to calculate SI contributions from July 1, 2019, is 29.4 million VND, corresponding to a statutory pay rate of 1.49 million VND (the current rate is 27.8 million VND corresponding to a statutory pay rate of 1.39 million VND).

Additionally, the SI contribution rate for employees participating in SI is 10.5%. Thus, the maximum SI contribution amount will be 29.4 x 10.5% = 3.087 million VND/month.

For employees and beneficiaries with salaries regulated by the State, the maximum SI contribution amount is calculated as follows: 1.49 x 20 x 8% = 2.384 million VND/month.

2. Increase in Contributions for Participants of Family-Based Health Insurance

The contribution rates for family-based health insurance (HI) are based on the statutory pay rate, as stipulated in Point e Clause 1 Article 7 of Decree 146/2018/ND-CP.

e) The health insurance premium rates for individuals specified in Article 5 of this Decree are as follows: the first person pays 4.5% statutory pay rate; the second, third, and fourth persons pay 70%, 60%, and 50% of the first person's premium, respectively; from the fifth person onwards, the premium is 40% of the first person's premium.

Thus, with the new statutory pay rate of 1.49 million VND/month, the family-based HI contributions are specifically as follows:

- First person: 67,050 VND;- Second person: 49,935 VND;- Third person: 40,230 VND;- Fourth person: 33,525 VND;- Fifth person onwards: 26,820 VND.

Duy Thinh

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