Headlines 11/01/2019 09:07 SA

Rates and percentages of employee’s salaries retained as regulatory contributions in 2019 are now specified

Quý Nguyễn

Below are rates and percentages of employee’s salaries retained as payments to insurance and trade union contributions (contributions paid by employees):

- SI, UI and HI contributions:

* Vietnamese employees:

+ 8% of the base pay rate paid into the retirement pension or death insurance benefit fund.

+ 1% of the base pay rate paid into the unemployment insurance benefit fund.

+ 1.5% of the base pay rate paid into the health insurance benefit fund

* Foreign nationals working in Vietnam: 1.5% of the base pay rate paid into the health insurance benefit fund.

- The trade union fee will be equal to 1% of the pay base rate if they are admitted into trade unions.

Amount retained = Base pay rate x Retaining rate

This calculation method must ensure that the base pay rate of each employee in 2019 will adhere to principles under which it is not lower than the region-specific base pay rate and does not exceed the prescribed maximum rate.

Legal bases: 2014 Law on Social Insurance; 2013 Law on Employment; Decree No. 146/2018/ND-CP dated October 17, 2018; Decree No. 143/2018/ND-CP dated October 15, 2018; Decision No. 595/QD-BHXH dated April 14, 2017; Decision No. 1908/QD-TLD dated December 19, 2016.

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