Proposal to lower health insurance contribution rates to alleviate economic burden on citizens in Vietnam

Proposal to lower health insurance contribution rates to alleviate economic burden on citizens in Vietnam

The content is addressed in Official Dispatch 142/BYT-VPB1 of 2025, responding to the petition of voters from Nghe An Province before the 8th Session of the 15th National Assembly, issued by the Ministry of Health.

Voters state that the increase in the statutory pay rate effective from July 1, 2024, from 1.8 million to 2.34 million according to Decree 73/2024/ND-CP of the Government of Vietnam has contributed to improving the living standards of officials and workers. However, this also results in a significant increase in health insurance contributions compared to before July 1 (from 972,000 VND/year to 1,263,600 VND/year). There is a petition to reduce health insurance contributions to alleviate economic burdens on citizens and ensure access to this social security policy for all groups.

Proposal to lower health insurance contribution rates to alleviate economic burden on citizens in Vietnam (Image from the internet)

Based on legal regulations, the National Assembly and the Government of Vietnam have stipulated that health insurance contributions are 4.5% of salary or pension, loss of work capacity allowance, unemployment allowance, or statutory pay rate based on the country's socio-economic development conditions and the contribution capability of the state, enterprises, workers, and citizens.

To encourage and support citizens in participating in Health Insurance, Decree 146/2018/ND-CP dated October 17, 2018, and Decree 75/2023/ND-CP dated October 19, 2023, of the Government of Vietnam amended and supplemented several articles of Decree 146/2018/ND-CP dated October 17, 2018, regulating contributions and support for health insurance contributions for the poor, near-poor, ethnic minorities, people living in economically challenging areas, middle-income farming, forestry, fishery, and salt production households.

In point e, clause 1, Article 7 of Decree 146/2018/ND-CP and clause 11, Article 1 of Law No. 51/2024/QH15, the contribution levels for health insurance for family participants are defined as follows: (1) The first person contributes 4.5% of the statutory pay rate; (2) The second, third, and fourth persons contribute 70%, 60%, and 50% respectively of the first person's rate; (3) From the fifth person onwards, the contribution is 40% of the first person's rate.

Additionally, point b, clause 3 of Decree 75/2023/ND-CP specifies: Based on local budget capacity and other legal funding sources, the People's Committee of the province and centrally-run city submits to the People's Council of the province and centrally-run city to decide on higher support levels for health insurance contributions for subjects rather than the minimum support levels, and support levels for health insurance contributions for subjects not eligible for the current support regulations.

With the relatively comprehensive scope of benefits covered by health insurance, the current health insurance contribution level is considered relatively low compared to countries with similar socio-economic development conditions. Therefore, the Ministry of Health hopes that voters understand and support the health insurance policy of the Communist Party and the State and actively participate in health insurance to ensure financial protection in times of illness and disease.

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