From July 1, collect social insurance, health insurance, unemployment insurance according to the new basic salary level

Vietnam Social Security has just issued Official Letter 2159/BHXH-BT on the contribution level to the occupational accident and disease insurance fund and collection of social insurance, health insurance, unemployment insurance, occupational accident and disease insurance according to the new basic salary level.

Accordingly, from July 1, the basic salary of 1.3 million VND/month will be applied as the basis for calculating the salary for compulsory social insurance (SI), health insurance (HI), unemployment insurance (UI), and occupational accident and disease insurance (OAD-BNN).

Applicable subjects are: Employees participating in compulsory social insurance, health insurance, unemployment insurance, occupational accident and disease insurance under the provisions of Article 2 of Decree No. 47/2017/ND-CP; people working abroad under contracts and people enjoying spouse and husband benefits at Vietnamese representative agencies abroad; full-time managers, full-time party secretaries, deputy party secretaries, full-time union chairmen at single-member limited liability companies with 100% charter capital held by the State...

According to the official dispatch, from June 1, 2017, employers shall make monthly contributions to the Occupational Accident and Occupational Disease Insurance Fund according to the provisions of Clause 3, Article 44 of the Law on Occupational Safety and Hygiene at the following rates:

- 0.5% of the salary fund used as the basis for social insurance contributions of employees as prescribed in points a, b, c, d, dd and h, Clause 1, Article 2 of the Law on Social Insurance, except for the case of employees who are domestic workers.

- 0.5% of the basic salary for employees as prescribed in Point e, Clause 1, Article 2 of the Law on Social Insurance.

The monthly income level that voluntary social insurance participants choose to calculate the voluntary social insurance contribution level from July 1st is up to 26 million VND/month (1,300,000 VND/month x 20 times).

Apply the basic salary of 1,300,000 VND/month to calculate the health insurance contribution level for those who only participate in health insurance.

Subjects whose health insurance premiums are fully paid by the state budget: From July 1, 2017, the health insurance premium is calculated based on the basic salary of VND 1,300,000/month. In case of being issued a health insurance card before July 1, from July 1, the Social Insurance agency will adjust the health insurance premium based on the basic salary of VND 1,300,000/month.

Subjects receiving partial state budget support for premiums and family health insurance participants from July 1, 2017: Health insurance premiums are calculated based on the basic salary of VND 1,300,000/month.

According to PLO