03 amounts of money employees are required to pay when receiving monthly salary in Vietnam

10:30, 23/12/2020

Every month, the employee will receive a sum of money to perform the work as agreed in the labor contract. However, before receiving salary, employees are required to pay the following 03 amounts.

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1. Social insurance, health insurance and unemployment insurance premiums

Specifically, according to Article 168 of the Labor Code 2019 of Vietnam, employers and employees shall participate in compulsory social insurance, compulsory health insurance and unemployment insurance and enjoy the benefits in accordance with provisions of the law on social insurance, health insurance and unemployment insurance.

When receiving monthly salary, employees are required to pay the following social insurance, health insurance and unemployment insurance premiums:

- The social insurance premium rate is 8% of the monthly salary to the retirement fund and death benefits fund;

- The unemployment insurance premium is 1% of the monthly salary to the unemployment insurance fund;

- The health insurance premium is 1.5% of the monthly salary to the health insurance fund;

(According to Article 5 and 14 of the Decision No. 595/QĐ-BHXH and Clause 1 Article 7 of the Decree No. 146/2018/NĐ-CP)

2. Union fee payment in case of being a member

According to Article 23 of the Decision No. 1908/QĐ-TLĐ of Vietnam Federal Confederation of Labor, in case the employee joins a trade union, the monthly union fee shall be equal to 1% of the salary as the basis for paying social insurance payment.

3. Personal income tax payment

According to the Law on personal income tax of Vietnam and Resolution No. 954/2020/UBTVQH14, every month, an employee with an income of VND 11 million/month or more will have to pay personal income tax (PIT) depending on the amounts are exempted and exempted from personal income tax. In which, deductions and exemptions from PIT include:

- Deduction for taxpayers themselves;

- Deduction based on family circumstances;

- Payments for social insurance, health insurance and professional liability insurance for a number of professions;

- Contributions to charity, humanitarian, study promotion;

- …

Therefore, after deductions for PIT deductions and exemptions but still positive, the method of partial progressive tax calculation specified in the Tax Schedule in Appendix 01/PL-TNCN will promulgated together with Circular No. 111/2013/TT-BTC of the Ministry of Finance of Vietnam shall be applied to calculate the amount of PIT payable by employees. Specifically:

Level	Assessable income/month	Tax rate	Tax payable
Level	Assessable income/month	Tax rate	Method 1	Method 2
1	Up to 5 million VND	5%	0 million VND + 5% of assessable income	5% of assessable income
2	From over 5 million VND to 10 million VND	10%	0.25 million VND + 10 % of assessable income in excess of 5 million VND	10% of assessable income - 0.25 million VND
3	From over 10 million VND to 18 million VND	15%	0.75 million VND + 15 % of assessable income in excess of 10 million VND	15% of assessable income - 0.75 million VND
4	From over 18 million VND to 32 million VND	20%	1.95 million VND + 20 % of assessable income in excess of 18 million VND	20% of assessable income - 1.65 million VND
5	From over 32 million VND to 52 million VND	25%	4.75 million VND + 25 % of assessable income in excess of 32 million VND	25% of assessable income - 3.25 million VND
6	From over 52 million VND to 80 million VND	30%	9.75 million VND + 30 % of assessable income in excess of 52 million VND	30% of assessable income - 5.85 million VND
7	From over 80 million VND	35%	18.15 million VND + 35 % of assessable income in excess of 80 million VND	35% of assessable income - 9.85 million VND

Ty Na

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