Important Accounting Tasks to be Carried Out When Regional Minimum Wages Increase

1. Submit the new salary scale to the Department of Labor, Invalids, and Social Affairs

Decree 157/2018/ND-CP has just been issued, stipulating an increase in regional minimum wage, effective from January 1, 2019.

Companies currently using a salary scale with a minimum wage lower than the level prescribed in Decree 157/2018/ND-CP must re-establish their salary scales.

Pursuant to Clause 6, Article 7 of Decree 49/2013/ND-CP, when amending or supplementing salary scales, companies must submit the new salary scales to the Department of Labor, Invalids, and Social Affairs.

Download the complete notification dossier for changing the salary scale HERE.

2. Notify the increase in social insurance contributions to the social insurance agency

An increase in the regional minimum wage also means a rise in the minimum social insurance contributions for employees. Therefore, if any company has a salary used to calculate social insurance contributions lower than the new required level, they must notify the increase in social insurance contributions.

The notification is to be carried out in accordance with Article 23 of Decision 595/QD-BHXH. Specifically:

For employees:

- Declaration of participation, adjustment of social insurance information, health insurance (Form TK1-TS);- In case the employee is entitled to higher health insurance benefits: provide additional proof documents (if any) as per Appendix 03.

For employers:

- Declaration of unit participation, adjustment of social insurance information, health insurance (Form TK3-TS);- List of employees participating in social insurance, health insurance, unemployment insurance, labor accident insurance, occupational disease insurance (Form D02-TS);- Information table (Form D01-TS).

Download the complete notification dossier for increasing social insurance contributions HERE.

Duy Thinh

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