Headlines 21/05/2019 15:53 CH

Changes in HI and compulsory SI contributions from July 1, 2019

Quý Nguyễn

The Government’s Decree No. 38/2019/ND-CP prescribes that, from July 1, 2019, the base pay rate shall be 1,490,000 dong/month increased by 100,000 dong compared to the one specified in existing regulations.

Therefore, from July 1, 2019, HI and compulsory SI contributions paid by the following persons will also be changed critically as follows:

1. HI contribution:

- Communal-level part-time public employees: 4.5% * 1,490,000 = 67,050 dong/month (increased by 4,500 dong/month).

- Family-based HI contribution:

+ First person: 4.5% * 1,490,000 = 67,050 dong/month (increased by 4,500 dong/month).

+ Second person: 70% * 67,050 = 46,935 dong/month (increased by 3,150 dong/month).

+ Third person: 60% * 67,050 = 40,230 dong/month (increased by 2,700 dong/month).

+ Fourth person: 50% * 67,050 = 33,525 dong/month (increased by 2,250 dong/month).

+ Fifth person onwards: 40% * 67,050 = 26,820 dong/month (increased by 1,800 dong/month).

2. SI contribution:

- Public employees working part-time at communes, wards or towns who pay the retirement pension, death benefit fund: 8% * 1,490,000 = 119,200 dong/month (increased by 8,000 dong/month).

- The maximum amounts of SI contributions paid by workers or salaried employees will be subject to the State’s regulations.

Clause 3 of Article 89 in the 2014 Law on Social Insurance prescribes that maximum amount of salaries used for calculation of SI contributions shall be 1,490,000 * 20 = 29,800,000 dong.

This means that the maximum amount of compulsory SI contribution paid by workers as provided in the aforesaid regulation will be 1,490,000 x 20 x 8% = 2,384,000 dong/month (increased by 60,000 dong).

Currently, HI and SI contributions mentioned above are prescribed in Article 7 in the Decree No. 146/2018/ND-CP and Article 89 in the 2014 Law on Social Insurance.

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