Increasing the common minimum wage from 01st July, 2018


2017-11-15

The current common minimum wage applied is 1,300,000, effect from 01st July, 2017 under the Resolution No.27/2016/QH14 on state budget estimate in 2017 and the Decree No.47/2017/NĐ-CP providing for the basic wage level for cadres, civil servants, public employees and armed forces. Recently, the National Assembly has approved the Resolution on state budget estimate in 2018 where National Assembly decided to increase the common minimum wage from 1,300,000 VND/month to 1,390,000VND/month which is going to take effect from 01st July, 2018 (increasing 90,000 VND/month from the current common minimum wage).

Relating to adjustment of the common minimum wage, the maximum salary and contribution rate to Social Insurance and Health Insurance will be risen as follows:

Unit: VND/month

Maximum salary Social Insurance Health Insurance

EE

(8%)

ER

(17.5%)

EE

(1,5%)

ER

(3%)

26,000,000 (applied from 01st July 2017 to 30th June 2018) 2,080,000 4,550,000 390,000 780,000
27,800,000 (applied from 01st July 2018) 2,224,000 4,865,000 417,000 834,000
Different amount     144,000    315,000   27,000   54,000
Total of different amount 459,000 81,000

The new common minimum wage will be applicable from 1st July, 2018.