April 26, 2019 Increasing the common minimum wage from 01 July, 2019

The current common minimum wage is 1,390,000 applied from 01st July, 2018 under the Resolution on state budget estimate in 2018 and the Decree No. 72/2018/NĐ-CP providing for the basic wage level for cadres, civil servants, public employees and armed forces. Recently, the National Assembly has issued the Resolution No. 70/2018/QH14 on state budget estimate in 2019 where National Assembly decided to increase the common minimum wage from 1,390,000 VND/month to 1,490,000VND/month which is going to take effect from 01st July, 2019 (increasing 100,000 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

Salary Cap for SHI contribution Social Insurance Health Insurance Occupational accidents and diseases insurance
EE

(8%)

ER

(17%)

EE

(1,5%)

ER

(3%)

ER

(0.5%)

27,800,000 (applied from 01st July 2018 to 30th June 2019) 2,224,000 4,726,000 417,000 834,000 139,000
29,800,000 (applied from 01st July 2019) 2,384,000 5,066,000 447,000 894,000 149,000
Different amount 160,000 340,000 30,000 60,000 10,000
Total of different amount 500,000 90,000 10,000

The new common minimum wage will be applicable from 1st July, 2019.

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