Decrease contribution rate of unemployment insurance for employers in Y2017
According to the Article 51 in the Law on Employment 2013, the levels of and responsibility to pay unemployment insurance premiums are specified as follows:
- Employees shall pay unemployment insurance premiums equal to 1% of their monthly wage;
- Employers shall pay unemployment insurance premiums equal to 1% of the monthly wage fund of the employees currently participating in unemployment insurance;
- The State shall provide at most 1% of the monthly wage fund of unemployment insurance premiums of employees currently participating in unemployment insurance.
Based on this Article, currently, both employees and employers as well as the state have responsibility to contribute 1% to Employment fund monthly. However, recently, in a frequently meeting in March, 2017, Government raised a proposition to adjust decrease the level of contribution rate for employers from 1% as current to 0.5%. The purpose is to create conditions for enterprise’s development.
Duration of the adjustment is from the effective date of the Resolution No. 34/NQ-CP until 31 December, 2019. The Ministry of Labor, War Invalids, & Social Affairs will coordinate with the relevant ministry to complete procedures and issue the particular guideline.
NVM Group will continue to update and inform you as soon as we get the guideline from MOLISA.