Recently, the Government has issued Decree 72/2018/ND-CP regulating the statutory pay rate, effective from July 01, 2018. Accordingly, from the effective date of this Decree, the statutory pay rate is 1,390,000 VND per month. This policy has led to a series of significant changes in related matters.
Article table of contents
1. Increase in Maximum Salary Contribution to Social Insurance
To be specific, according to Clause 3, Article 89 of the 2014 Law on Social Insurance, the maximum monthly salary for social insurance contributions of an employee is 20 times the statutory pay rate.
Thus, before July 1, 2018, the maximum monthly salary for social insurance contributions was 26,000,000 VND, but from July 1, 2018, the maximum will be 27,800,000 VND.
At the same time, according to the regulations in Notice 1228/TB-BHXH, if the salary used as the basis for social insurance, health insurance contributions exceeds 27,800,000 VND, the employee will contribute social insurance, health insurance, unemployment insurance - occupational accident and disease insurance up to a maximum of 27,800,000 VND. The highest monthly income chosen by participants of voluntary social insurance is 27,800,000 VND (20 times the statutory pay rate) at the time of contribution.
2. Increase in Health Insurance Contribution for Household Members
Based on Point g, Clause 1, Article 2 of Decree 105/2014/ND-CP, before July 1, 2018, the annual health insurance contribution for household members according to Clause 5, Article 12 of the 2014 Amended and Supplemented Law on Health Insurance was 702,000 VND. However, from July 1, 2018, with the change in the statutory pay rate, this contribution will increase to 750,600 VND. The monthly health insurance contribution for a household is 4.5% of the statutory pay rate.
3. Maternity Leave Lump-Sum Benefit Increased by 180,000 VND
According to Article 38 of the 2014 Law on Social Insurance, female employees giving birth or employees adopting a child under 6 months of age are entitled to a one-time allowance for each child equal to 2 times the statutory pay rate for the month the female employee gives birth or the month the employee adopts the child.
In the case where the child is born but only the father participates in social insurance, the father is entitled to a one-time allowance equal to 2 times the statutory pay rate for the month the child is born for each child.
Thus, if the subsidy calculated according to the statutory pay rate for 2017 was 2,600,000 VND, then from July 1, 2018, when employees take maternity leave, they will receive 2 months of allowance with a new amount of 2,780,000 VND.
4. The Benefit for Convalescence and Health Rehabilitation after Maternity and Sickness Also Significantly Increases
According to Clause 3, Article 29 and Clause 3, Article 41 of the 2014 Law on Social Insurance, the benefit for convalescence and health rehabilitation after maternity and sickness per day is 30% of the statutory pay rate.
Therefore, before July 1, 2018, the daily benefit was 390,000 VND, but from July 1, 2018, with the new statutory pay rate, this benefit will increase to 417,000 VND, and the amount received will multiply according to the number of days off for convalescence.
