Salary increase, what will be the social insurance contribution level?
The 2018 insurance salary level is specifically regulated for the group receiving salary from the budget and the group of enterprises paying for employees.
The latest levels of social insurance, health insurance, and unemployment insurance contributions are implemented according to Decision No. 595/QD-BHXH dated April 14, 2017 of Vietnam Social Security on promulgating the Procedures for collecting social insurance, health insurance, unemployment insurance, occupational accident and disease insurance (OHI, BNN); issuing social insurance books and health insurance cards.
Decision No. 595/QD-BHXH takes effect from May 1, 2017 and replaces Decision No. 959/QD-BHXH.
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According to Decision No. 595/QD-BHXH, the social insurance contribution rate, the enterprise only contributes 17% to the social insurance fund (3% to the sickness and maternity fund, 14% to the retirement and death fund).
In addition to the above 17%, enterprises must also pay occupational accident and disease insurance, specifically: Before June 1, 2017: pay 1% of the employee's social insurance salary. But from June 1, 2017, they only have to pay 0.5% of the employee's social insurance salary (According to Article 22 of Decision 595). The health insurance and unemployment insurance contribution rates remain unchanged (Article 14, Article 18).
Salary level for insurance participation in 2018
For the administrative sector: The salary is regulated by the State, the monthly salary subject to compulsory social insurance is the salary according to the scale, level, military rank and position allowances, seniority allowances beyond the framework, seniority allowances (if any). This salary is calculated on the basic salary (including the difference coefficient reserved according to the provisions of the law on salary).
For businesses: Salary is decided by the unit
From January 1, 2018, the monthly salary subject to compulsory social insurance is the salary, salary allowances and other supplements as prescribed in Article 4 of Circular No. 47/2015/TT-BLDTBXH.
Allowances subject to compulsory insurance include: position and title allowances; responsibility allowances; heavy, toxic, and dangerous allowances; seniority allowances; regional allowances; mobility allowances; attraction allowances and allowances of a similar nature.
Other supplements are supplements that have been agreed upon by both parties such as:
Supplements are defined as a specific amount of money in addition to the salary agreed upon in the employment contract and paid regularly in each pay period.
Additional amounts that do not have a specific amount of money in addition to the salary agreed upon in the labor contract, paid regularly or irregularly in each pay period related to the work process and work performance of the employee.
The monthly salary subject to compulsory social insurance does not include other benefits and welfare, such as bonuses as prescribed in Article 103 of the Labor Code, initiative bonuses; mid-shift meal allowances; allowances for gasoline, telephone, travel, housing, childcare, childcare; support when employees have relatives who die, employees have relatives who get married, employees' birthdays, subsidies for employees facing difficult circumstances due to work accidents, occupational diseases and other support and subsidies./.
