Lawyer Bui Tuong Vu Highlights Changes in Social Insurance Contributions for Employees from January 01, 2020

Regarding this issue, Legal Expert Bui Tuong Vu, Chairman of the Law Secretary Council, clarifies as follows:

Firstly, the social insurance contribution rates (social insurance, unemployment insurance, health insurance) remain unchanged as currently, at a rate of 10.5% of the employee's salary.

Illustration (Source: Internet)

Secondly, the maximum amount of unemployment insurance contributions will change from January 1, 2020. To be specific:

- Point a, Clause 1, Article 57 of the Employment Law 2013 stipulates: Employees shall contribute unemployment insurance at a rate of 1% of their monthly salary.

- Clause 2, Article 58 of the Employment Law 2013 stipulates: Employees contribute unemployment insurance based on the salary policies decided by the employer, the monthly salary used as the basis for unemployment insurance contributions is the salary used to determine mandatory social insurance contributions according to the Social Insurance Law. If the monthly salary used as the basis for unemployment insurance contributions exceeds twenty times the regional minimum wage, the monthly salary used as the basis for unemployment insurance contributions shall be twenty times the regional minimum wage as prescribed by the Labor Code at the time of unemployment insurance contribution.

- It is projected that from January 1, 2020, the regional minimum wage will increase to 4,420,000 VND/month (Region I), 3,920,000 VND/month (Region II), 3,430,000 VND/month (Region III), 3,070,000 VND/month (Region IV).

Thus, the maximum monthly unemployment insurance contribution amount for employees will be adjusted to increase accordingly, specifically 884,000 VND (Region I), 784,000 VND (Region II), 686,000 VND (Region III), 614,000 VND (Region IV).

Legal Expert Bui Tuong Vu

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