Currently, there are many businesses interested in paying insurance for employees because it is one of the compulsory provisions of the Law on Social Insurance. In the framework of the following article, we will send to readers the regulations on payment of social insurance, unemployment insurance, health insurance, unemployment insurance and labor insurance – BNN updated last:
I, the lowest salary for participating in compulsory social insurance in 2020:
According to the provisions of Decree 90/2019 / ND-CP stipulating the minimum wage of employees working under labor contracts, the minimum wage is region-based from January 1, 2020 as follows. :
– VND 4,420,000 / month, applicable to enterprises operating in the area of region I.
– VND 3,920,000 / month, applicable to enterprises operating in the area of Region II.
– The level of VND 3,430,000 / month, applicable to enterprises operating in localities of region III.
– VND 3,070,000 / month, applicable to enterprises operating in the area of Region IV.
The above salary is applied on the following principles:
– Enterprises operating in any area shall apply the region-based minimum wage for that area. In case an enterprise has a unit or branch operating in a region with different regional minimum wage, which locality does the unit or branch operate in, applying the region-based minimum wage? there.
– Enterprises operating in industrial parks and export processing zones located in areas with different regional minimum wages, shall apply the highest minimum regional wage areas.
– Enterprises operating in the area having a change of name or splitting shall temporarily apply the region-based minimum wage to the area before changing or splitting the name until a new regulation is issued by the Government.
– Enterprises operating in a locality that is newly established from one locality or areas with different regional minimum wages shall apply the regional minimum wage according to the locality with the highest regional minimum wage. In case an enterprise operating in a provincial city is newly established from one locality or many areas of region IV, the regional minimum wage applicable to the provincial city shall still apply. and in Section 3 of the Appendix to this Decree.
The minimum region-based wage level mentioned above is the lowest level that serves as a basis for enterprises and employees to agree and pay wages, in which the wage level paid to laborers working in normal and guaranteed working conditions having enough normal working hours in the month and fulfilling the agreed labor or work norms must ensure:
– Not lower than the regional minimum wage for laborers performing the simplest jobs;
– At least 7% higher than the regional minimum wage for laborers performing jobs requiring vocational training or vocational training, including:
+ Persons who have been granted a vocational certificate, vocational diploma, professional high school diploma, vocational high school diploma, college diploma, general university certificate, bachelor’s degree, bachelor’s degree, master’s or master’s degree, a doctorate degree according to the provisions of the Government’s Decree No. 90-CP of November 24, 1993 defining the framework structure of the national education system, the system of diplomas and certificates on education and training;
+ Persons who have been granted professional secondary education diplomas, vocational training graduation diplomas, college diplomas, university diplomas, masters degrees, or doctorate degrees; diplomas and certificates of vocational education; higher education diplomas and continuing education diplomas and certificates according to the 1998 Education Law and the 2005 Education Law;
+ Persons who have been granted certificates under regular vocational training programs, primary vocational certificates, vocational intermediate diplomas, vocational college diplomas or completed vocational training programs under vocational training contracts prescribed in Vocational Law;
+ Persons who have been granted a national vocational skill certificate under the Employment Law;
+ Persons who have been granted vocational training degrees, certificates of elementary, intermediate and college education; regular training and other vocational training programs under the Vocational Education Law;
+ Persons who have been granted training diplomas of university education according to the Law on Higher Education;
+ Persons who have been granted diplomas and certificates of foreign training institutions;
+ Persons who have received vocational training by the enterprise or are self-taught by the enterprise and have been tested and arranged to do jobs requiring vocational training.
II, The highest salary to participate in compulsory social insurance in 2020:
According to Decree 38/2019 / ND-CP on the base salary of officials and public employees, the current common minimum wage is 1,490,000 VND / month, starting from July 1, 2020, the common minimum wage will be increased to VND 1,600,000 / month according to the National Assembly’s Resolution No. 86/2019 / QH14 of November 12, 2019, on the 2020 state budget estimate.
Pursuant to Clauses 2 and 3, Article 89 of the Law on Social Insurance 2014 on the monthly salary paid for compulsory social insurance, the maximum level of social insurance premium payment is equal to 20 times the basic salary, that is not more than 20 × 1,490,000 = VND 29,800,000. From July 1, 2020, it will be 20 × 1,600,000 = 32,000,000 VND.
III, Premium rate of insurance contributions from 1/1/2020:
According to Decision No. 595 / QD-BHXH, the rate of deduction for payment of social insurance premium is prescribed as follows:
|Đối tượng đóng||Tỷ lệ trích đóng các loại BHXH bắt buộc|
|Doanh nghiệp||17,5 %||3 %||1 %||21,5 %|
|Người lao động||8 %||1,5 %||1 %||10,5 %|