Notice of regional minimum wage and late payment interest rate for social insurance, health insurance, unemployment insurance, occupational accident and disease insurance

Accordingly, from January 1, 2019, the salary and late payment interest for social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance are as follows:

I. About salary for social insurance, health insurance, unemployment insurance, occupational accident and disease insurance

1.As of January 1, 2019,Applying the regional minimum wage stipulated in Clause 1, Article 3 of Decree No. 157/2018/ND-CP dated November 16, 2018 of the Government is the lowest level as a basis for enterprises and employees to negotiate and pay wages to employees working in normal working conditions and the simplest jobs, specifically:

- The level of 3,250,000 VND/month/person applies to businesses operating in Vinh city (region III);

- The level of VND 2,920,000/month/person applies to businesses operating in districts and towns of Nghe An province (region IV).

Social insurance experts are concerned that workers receiving one-time social insurance payments will greatly affect long-term social security. Photo courtesy

2.For workersFor jobs requiring vocational training as prescribed in Clause 2, Article 5 of Decree No. 157/2018/ND-CP of the Government, the salary stated in the labor contract must be at least 7% higher than the regional minimum wage stated in Clause 1 of this Section.

3.Businessactivities in the areaIn case an enterprise has branches operating in areas with different regional minimum wages, the unit or branch operating in each area shall apply the regional minimum wage according to that area. For enterprises operating in industrial parks and export processing zones located in areas with different regional minimum wages, the area with the highest regional minimum wage shall apply.

4.Businessoperations in the area have changed names or splitThe regional minimum wage prescribed for the area before the name change or separation shall be temporarily applied until the Government has new regulations.

5.Newly established businesses operating in the areaIf one or more localities have different regional minimum wages, the regional minimum wage will be applied according to the locality with the highest regional minimum wage.
In case an enterprise operates in a provincial city newly established from one or more localities in region IV, the regional minimum wage prescribed for the remaining provincial cities in Section 3, Appendix issued with Decree 157/2018/ND-CP shall apply (applying the regional minimum wage of region III).

II. On late payment interest for social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance

Adjusted salary and income levels for social insurance contribution in 2019. Photo: Document

From January 1, 2019, the interest rate for late payment of social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance shall be implemented according to the provisions of Clause 3, Article 6 of Decision No. 60/2015/QD-TTg of the Prime Minister, specifically regulated as follows:

1.Interest rate for cases where employers have not paid or are late in paying health insuranceimplemented according to the provisions in Point a, Clause 3, Article 6, Decision No. 60/2015/QD-TTg: “In case of late payment of health insurance for 30 days or more, the amount of interest to be collected is equal to 02 times the interbank market interest rate for a 9-month term announced by the State Bank of Vietnam on the Electronic Information Portal of the State Bank of Vietnam in the previous year, calculated on the amount and time of late payment. In case the interbank interest rate for the previous year does not have a 9-month term, the interest rate of the term immediately before the 9-month term shall apply”.

- The 9-month interbank market interest rate announced by the State Bank of Vietnam on the State Bank of Vietnam's Electronic Information Portal on December 28, 2018 is 5.2%/year; equivalent to 0.433%/month.

- The interest rate applied to cases of non-payment or late payment of health insurance from January 1, 2019 is 0.866%/month.

People of Cua Lo town carry out procedures to adjust personal information according to regulations of the Social Insurance agency. Photo: Document

2.Interest rates for cases where employers have not paid or are late in paying social insurance,Social InsuranceImplement according to the provisions at Point b, Clause 3, Article 6, Decision No. 60/2015/QD-TTg: "In case of evasion, late payment, appropriation of payment and receipt of social insurance and unemployment insurance for 30 days or more, the amount of interest to be collected is equal to 02 times the average investment interest rate of the social insurance and unemployment insurance fund of the previous year".

- The average investment interest rate in 2018 is 6.4%/year; equivalent to 0.533%/month.

- The interest rate applied to cases of non-payment or late payment of social insurance and unemployment insurance from January 1, 2019 is 1.066%/month.