How will the social insurance contribution rate change when the regional minimum wage increases in 2019?
From January 1, 2019, the regional minimum wage will increase by 160,000 - 200,000 VND/month, so the lowest salary for social insurance contributions will change.
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According to Clause 2.6, Article 6 of Decision 595/QD-BHXH, the salary for social insurance contributions of employees working in enterprises must not be lower than the regional minimum wage (LTT) at the time of payment for employees doing the simplest job or position under normal working conditions. For employees doing jobs or positions requiring trained or apprenticed workers (including workers trained by the enterprise itself), the salary must be at least 7% higher than the regional minimum wage.
From 2019, the regional minimum wage will increase by 160,000 - 200,000 VND/month, so the lowest salary for social insurance contributions will change as follows:
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Therefore, based on the above regulations, your current salary is 4.3 million VND/month. If the employee does simple work, the current salary is higher than the regional minimum wage that will be applied from January 1, 2019. If you are learning a trade, the regional minimum wage will have to increase accordingly (the lowest is 4,472,600 VND from January 1, 2019). At the same time, the social insurance contribution will also be adjusted to increase accordingly.