The changes on salary and insurance will affect labor budget in 2018


2018-01-03

1. REGION-BASED MINIMUM SALARY WILL INCREASE FROM 1 JANUARY 2018

On 07th December, 2017, the Government issued a new Decree No. 141/2017/ND-CP on the new region-based minimum wages for those who work under labor contracts. This Decree effects from 01st January 2018, accordingly, the region-based minimum wages will increased from 180,000 to 230,000 dong each month as compared to the current levels. Details are as below:

Region Current

(Decree 153/2016/ND- CP)

From 01st Jan, 2018

(Decree 141/2017/ND-CP)

I 3,750,000 3,980,000
II 3,320,000 3,530,000
III 2,900,000 3,090,000
IV 2,580,000 2,760,000

Companies should please note that for employees those who in vocational training, they must be paid at least seven (7) per cent higher than the region-based minimum wages regulated by Government

Click here for detailing Decree 153/2016/ND-CP

2. MINIMUM BASIC SALARY WILL INCREASE FROM 1 JULY 2018:

On 13 November 2017, the National Assembly approved the Resolution on State budget estimates for 2018. As a result, the common minimum wage will be increased from 1,300,000 VND/month to 1,390,000VND/month from 01st July, 2018.

Click here for detailing of Resolution 49/2017/QH14

3.CAP SALARY FOR SI-HI-UI CONTRIBUTION WILL INCREASE FROM Y2018

With the increase in minimum basic salary and region-based minimum salary, the maximum salary for SI–HI-UI contribution for Y2018 will be risen as follows:

Unit: VND/month

From 01 July 2018 From 01 Jan 2018
Social Insurance Health Insurance Unemployment Insurance (Region 1)
Maximum salary 27,800,000 VND (20 months’ common minimum salary) 27,800,000 (20 months’ common minimum salary) 79,600,000 (20 months’ region-based minimum wages)
In which EE (8%) ER (17.5%) EE (1,5%) ER (3%) EE (1%) ER (1%)
2,224,000 4,865,000 417,000 834,000 796,000 796,000

The cap salary will be applied for employees who are entitling income over 20 times of minimum basic salary for SI – HI contribution and 20 times of region-based minimum salary for UI contribution.