New Minimum Basic Salary, Social Insurance Rates in Vietnam
Vietnam will introduce new regulations on the minimum basic salary for social insurance. The government’s Decree 38/2019/ND-CP on minimum basic salary will take effect from July 1, 2019.
As per the new law, the minimum basic salary cap for social insurance will be raised to US$1,295 (29,800,000 VND) from the current US$1,208 (27,800,000 VND) per month. This means that the mandatory social insurance contribution for both employer and employee will increase from July 1.
Social insurance includes coverage for sickness, maternity, occupational diseases and accidents, as well as retirement and death.
This is an excerpt from an article appearing in Vietnam Briefing, a subsidiary of Dezan Shira & Associates. For the latest economic, regulatory and business news from Vietnam, visit vietnam-briefing.com.