Notice of additional subjects participating in social insurance, unemployment insurance, occupational accident and disease insurance and regional minimum wage applicable from January 1, 2018

(Baonghean) - Notice of additional subjects participating in social insurance, unemployment insurance, occupational accident and disease insurance and regional minimum wage applicable from January 1, 2018

Nghe An Provincial Social Insurance has just issued Official Dispatch No. 2102/BHXH-QLT dated December 21, 2017 to Heads of labor-using units regarding the announcement of additional subjects participating in social insurance, unemployment insurance, occupational accident and disease insurance and the regional minimum wage applicable from January 1, 2018.

Accordingly, in order for units to promptly grasp and comply with the provisions of the Law on Social Insurance (SI) No. 58/2014/QH13 dated November 20, 2014; Decree No. 141/2017/ND-CP dated December 7, 2017 of the Government on the Regulation of regional minimum wages for employees working under labor contracts, Nghe An Provincial Social Insurance has announced the addition of subjects participating in SI, UI, ILO-DHI and regional minimum wages applicable from January 1, 2018 as follows:

1. Supplementing subjects of compulsory social insurance payment, including:

- Employees working under labor contracts with a term from 01 month to less than 03 months.

- Foreign employees working in Vietnam with a work permit or practice certificate or practice license issued by a competent authority of Vietnam are eligible to participate in compulsory social insurance according to Government regulations.

2. The monthly salary for compulsory social insurance payment for employees working under labor contracts is the salary and salary allowance as prescribed in Clause 1; Point a, Clause 2 and Point a, Clause 3, Article 4 of Circular No. 47/2015/TT-BLDTBXH dated November 16, 2015 of the Ministry of Labor - Invalids and Social Affairs guiding the implementation of a number of articles on labor contracts, labor discipline, and material responsibility prescribed in Decree No. 05/2015/ND-CP dated January 12, 2015 of the Government.

3. The regional minimum wage stipulated in Clause 1, Article 3 of Decree No. 141/2017/ND-CP dated December 7, 2017 is the lowest level used as a basis for enterprises and employees to agree on the salary stated in the contract and pay wages to employees working in normal working conditions and the simplest jobs, specifically:

a) The level of VND 3,090,000/month/person applies to businesses operating in Vinh City (region III).

b) The level of VND 2,760,000/month/person applies to enterprises operating in districts and towns of Nghe An province (region IV).

c) For employees doing jobs that require vocational training as prescribed in Clause 2, Article 5 of Decree No. 141/2017/ND-CP dated December 7, 2017, the salary stated in the labor contract must be at least 7% higher than the regional minimum wage stated in Clause a and Clause b of this section.

4. Enterprises operating in a specific area shall apply the regional minimum wage prescribed in that area.

a) In case an enterprise has branches operating in areas with different regional minimum wages, the branch or unit operating in each area shall apply the regional minimum wage in that area. For enterprises operating in industrial parks, export processing zones, and high-tech zones located in areas with different regional minimum wages, the area with the highest regional minimum wage shall apply.

b) Enterprises operating in areas with name changes or separations shall temporarily apply the regional minimum wage prescribed for the area before the name change or separation until the Government has new regulations.

c) Enterprises operating in a newly established area from one or more areas with different regional minimum wages shall apply the regional minimum wage according to the area with the highest regional minimum wage.

Nghe An Social Insurance