From July 01, 2018, a series of policies on wages and social insurance for employees officially take effect, notably including the following 03 changes.
Article table of contents
1. Increase statutory pay rate to 1.39 million VND/month
Decree 72/2018/ND-CP, effective from July 1, 2018, regulates the increase in statutory pay rate for officials, public employees, and those serving in the people's armed forces.
To be specific, the statutory pay rate is increased from 1.3 million VND/month to 1.39 million VND/month.
2. Increase pension and social insurance allowance by 6.92% from July 1, 2018
In accordance with the increase in the statutory pay rate, the Government of Vietnam issued Decree 88/2018/ND-CP, which stipulates a 6.92% increase in pensions and allowances effective from July 1, 2018.
3. Increase the maximum salary for social insurance contributions
As prescribed in Clause 3, Article 89 of the Law on Social Insurance 2014, the maximum salary for social insurance contributions is 20 times the statutory pay rate.
With the increase in the statutory pay rate, the maximum salary for social insurance contributions will also increase. Specifically, the new maximum salary will be 27,800,000 VND, up from the current 26,000,000 VND.
