The salary as the basis for insurance payment is determined as follows:

From January 1, 2018 all wages, allowances and other benefits that employees are given in accordance with the labor law.

The salary for participation in the insurance must not be lower than the regional minimum salary prescribed by the state at the time of participation. If skilled workers have been trained, add 7%.

From January 1, 2018, the minimum wage for each region will be applied as follows:

  • Minimum salary region 1: 3,980,000 VND/month
  • Regional minimum salary 2: 3,530,000 VND/month
  • Minimum salary zone 3: 3,090,000 VND/month
  • Regional minimum salary 4: 2,760,000 VND/month

Region 1 includes the districts and districts of Hanoi City, Ho Chi Minh City, Hai Phong City, Thu Dau Mot City and the districts of Binh Duong, Bien Hoa City and the districts of Dong Nai. Regions 2 to 4 as detailed in Decree 153/2016/ND-CP.

 

Example: An enterprise has an investment project in Thu Dau Mot, Binh Duong province. How much does the enterprise have to pay to participate in compulsory insurance according to regulations for 1 trained worker?

Thu Dau Mot, Binh Duong province belongs to Region 1. The minimum salary as the basis for participating in compulsory insurances in Region 1 is currently:
3,980,000 VND x (1+7%) = 4,258,600 VND.

The minimum amount an enterprise must pay social insurance, health insurance and unemployment insurance premium for 01 employee in Region 1 is:
21.5% x 4,258,600 vnd = 915,599 vnd