Minimum and Maximum Salary Levels for Calculating Social Insurance Contributions in 2019

Section 2.6, Article 6 of Decision 595/QD-BHXH stipulates that the salary for compulsory social insurance contributions must not be lower than the regional minimum wage for the simplest job under normal conditions; thus, the minimum salary for social insurance contributions must correspond to the regional minimum wage stipulated in Decree 157/2018/ND-CP, specifically:

- 4,180,000 VND/month, applicable to enterprises operating in Region I;

- 3,710,000 VND/month, applicable to enterprises operating in Region II;

- 3,250,000 VND/month, applicable to enterprises operating in Region III;

- 2,920,000 VND/month, applicable to enterprises operating in Region IV.

Meanwhile, according to Article 89 of the Law on Social Insurance 2014, if the salary for social insurance contributions exceeds 20 times the statutory pay rate, then the monthly salary for social insurance contributions shall be 20 times the statutory pay rate.

Currently, the statutory pay rate is applied according to the provisions of Decree 38/2019/ND-CP at the rate of 1,490,000 VND/month, therefore the maximum salary for social insurance contributions is determined as follows:

Maximum salary for social insurance contributions = 1,490,000 x 20 = 29,800,000 VND.

The monthly social insurance contributions of an employee are calculated based on the salary for social insurance contributions and the rate of social insurance contributions, in which the employee contributes 8% to the social insurance fund, 1% to the unemployment insurance fund, and 1.5% to the health insurance fund.

Duy Thinh

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