Insurance contribution rate and union dues Vietnam 2024
Every month, no later than the last day of the month, the enterprise deducts money from the monthly salary fund of participating employees to pay for various types of insurance, including Compulsory Social Insurance, Unemployment Insurance, and Health Insurance
Simultaneously, the enterprise deducts from the monthly salary of each employee the specified amount for insurance, and transfers it to the collection account of the social insurance agency at a designated bank or State Treasury. The rates for insurance deductions, including social insurance, health insurance, and unemployment insurance, as well as trade union fees (KPCĐ), are outlined in Decision No. 595/QD-BHXH. For more detailed information, please refer to the article below from SMART SOLUTION FOR BUSINESS COMPANY LIMITED.
1. Insurance contribution rate and fixed deposit
1.1 Insurance deduction rate
According to the provisions of Decision No. 595/QD-BHXH, the insurance deduction rate is summarized as follows:
The social insurance payment rate for businesses is 17.5%. In there:
- 14% is allocated to the retirement and death fund.
- 3% is allocated to the sickness and maternity fund.
- 0.5% is allocated to the Labor Accident Insurance Fund.
Thus, every month businesses must pay 32% to the Social Insurance Agency. Of which, businesses bear 21.5%, deducting 10.5% from employees’ salaries.
1.2 Deduction rate of union funds and union dues
Every month, businesses must pay 2% of the monthly salary fund of social insurance participants to the District Labor Federation.
Note regarding union dues: if employees join a trade union, they must pay according to the above deduction rate. If employees do not participate, they do not have to pay union dues.
Social, Health and Unemployment Insurance Contributions in Vietnam
2. Compulsory social insurance salary rate
2.1 For employees implementing the salary regime prescribed by the State
For employees governed by the state-mandated salary regime, the monthly salary used to calculate contributions for compulsory social insurance, unemployment insurance, and health insurance includes the basic salary determined by rank, grade, military rank, and positional allowances, as well as any allowances for over-seniority and length of service, if applicable. However, for individuals employed on a part-time basis in communes, wards, and towns, the monthly salary for calculating compulsory social insurance, unemployment insurance, and health insurance contributions is based on the basic salary alone.
2.2 For employees implementing the salary regime decided by the employer
For employees who pay social insurance according to the salary regime decided by the employer, the monthly salary for compulsory social insurance, unemployment insurance, and health insurance includes:
2.2.1 Salary: Salary according to job or title.
2.2.2 Salary allowances, including:
- Ry allowances to compensate for factors such as working conditions, complexity of work, living conditions, level of labor attraction that the salary agreed upon in the labor contract has not been taken into account or incompleteness;
- Salary allowances are linked to the employee’s work process and job performance results.
2.2.3 Other additional amounts, including:
- Additional payments with a specific amount determined along with the salary agreed in the labor contract and paid regularly in each pay period;
- Additional payments whose specific amount cannot be determined along with the salary agreed in the labor contract, paid regularly or irregularly in each pay period associated with the working process and job performance results of workers.
2.3 Regarding salary, attention should be paid to:
– The monthly salary paid for compulsory social insurance must not be lower than the regional minimum wage at the time of payment for employees doing the simplest job or title under normal working conditions. As follows:
- The lowest monthly salary to calculate the compulsory social insurance payment is the regional minimum salary.
- The maximum monthly salary to calculate the compulsory social insurance payment is 20 times the base salary.
- As for unemployment insurance, the maximum contribution is 20 times the regional minimum wage.
– Employees working in jobs or titles that require trained or vocational workers (including workers trained by the enterprise themselves) must be at least 7% higher than the regional minimum wage.
– Employees working in jobs or positions with heavy, hazardous or dangerous working conditions must be at least 5% higher; Jobs or titles with particularly heavy, toxic or dangerous working conditions must be at least 7% higher than the salary of jobs or titles of equivalent complexity, working in working conditions. normal movement.
Do foreign workers have to participate in unemployment insurance in Vietnam?
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4. Insurance contribution rate for foreign workers working in Vietnam
Pursuant to Decree 143/2018/ND-CP issued by the Government on October 15, 2018 and the Law on occupational safety and hygiene on compulsory social insurance for foreign workers:
– From December 1, 2018 to December 31, 2021:
+ Closed business:
- Social insurance: 3.5%.
- Health insurance: 3%.
- Unemployment insurance: 0%.
+ Employees pay:
- Social insurance: 0%.
- Medical insurance: 0%
- Unemployment insurance: 1.5%.
– From January 1, 2022:
+ Enterprises pay: Social insurance: 17.5%.
+ Employees pay: Social insurance: 8%.
Above are the latest insurance contribution rates (social insurance, health insurance, unemployment insurance), and trade union fees.
SMART SOLUTION FOR BUSINESS COMPANY LIMITED
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