8 major changes in salary and social insurance that employees need to know

1. Supplementing regulations on regional minimum hourly wages

Currently, the Government has only announced the monthly regional minimum wage. However, for employees working part-time for businesses, there is no regulation on the hourly minimum wage.

Thus, adding regulations on regional minimum hourly wages will contribute to ensuring the rights of workers in this group as well as ensuring the flexibility of the labor market.

2. Increase regional minimum wage in the period 2018 - 2020

For this period, the State's goal is to adjust and increase the regional minimum wage so that by 2020 the minimum wage will ensure a minimum living standard for workers and their families (not the current minimum living needs).

3. Abolish basic salary, apply 5 new salary scales

According to the plan to reform the salary policy for employees working in the public sector, from 2021, the basic salary will be abolished and 5 new salary scales will be applied. Specifically:

The salary scale for positions applies to cadres, civil servants, and public employees holding leadership positions (elected and appointed) in the political system from the central to communal level.

Professional and technical salary scale according to civil servant ranks and professional titles of public employees applies generally to public employees and civil servants who do not hold leadership positions.

Salary table for military officers, police officers and non-commissioned officers (by position, title and military rank or grade).

Salary scale of professional military personnel, police technical specialists.

Salary table of defense workers and police workers.

4. Reduce the time to pay social insurance to receive pension from 20 years to 15 years

In order to create conditions for elderly workers with low social insurance participation years to access and enjoy social insurance benefits, the State will reduce the minimum social insurance payment period from 20 years to 15 years and gradually to only 10 years to receive pension.

5. Add 4 groups of subjects required to pay compulsory social insurance

In addition to the subjects currently required to pay compulsory social insurance according to the provisions of the Social Insurance Law 2014, the subjects required to pay will be expanded to include: Business owners, Business managers; Cooperative managers and operators who do not receive salaries; Employees working under flexible working regimes.

6. Amending regulations on contribution levels and bases for social insurance contributions

In order to overcome the situation of evasion and underpayment of social insurance, affecting the rights of employees, the social insurance policy will soon amend the regulations on the basis of social insurance contributions of the business sector to be at least equal to about 70% of the total salary and other income of quality of employees.

7. Amend the law to reduce the situation of receiving social insurance benefits at one time

The above amendment will be implemented in the direction of increasing benefits if the social insurance participation time is reserved to enjoy retirement benefits, and reducing benefits if receiving one-time social insurance benefits.

In addition, regulations will be amended to encourage workers to participate in social insurance for a longer period of time, gradually increase the average retirement age, and increase the pension deduction rate for workers who want to receive early retirement benefits.

8. Abolish 5 types of allowances (public sector)

Along with the construction of 5 new salary tables, the State will abolish 5 types of allowances:

- Seniority allowance (except for military, police, and cryptography to ensure salary correlation with cadres and civil servants).

- Leadership position allowance (by leadership positions in the political system to implement salary ranking).

- Allowance for party work, political and social organizations.

- Public service allowance (included in the basic salary).

- Toxic and hazardous allowances (due to including working conditions with toxic and hazardous factors in occupational allowances).