New regulation on the social insurance contribution
NEW REGULATION ON THE SOCIAL INSURANCE CONTRIBUTION
From 1/6/2017, Decree No. 44/2017/NĐ-CP which stipulates for compulsory social insurance contribution to the occupational accident and disease insurance fund will be effective.
Accordingly, the employer’s contribution to the occupation accident and disease insurance fund will be reduced from 1% to 0.5% of the salary fund used to pay the social insurance in the following cases (except for domestic helper):
- Persons working under labor contracts with indefinite terms or definite terms or seasonal jobs or for certain jobs with a term of from 3 months to under 12 months, including the labor contract signed between the employer and the legal representative of the person under 15 in accordance with the Labor law;
- Persons working under labor contracts with a term ranging from 1 month to less than 3 months;
- Officials and civil servants;
- National defense workers, police workers, other working persons in cipher organizations;
- Officers, professional soldiers of the people's army; Professional officers, non-commissioned officers, officers and non-commissioned officers of the People's Public Security Forces; Cipher workers earned wages as for military personnel;
- The manager of the enterprise, the executive manager of the cooperative who is salaried.
For non-commissioned officers, soldiers of the people's army; Non-commissioned officers and soldiers of the People's Police for a definite term; Military cadres, police officers, custodians enrolled for living expenses, the level of payment reduced to 0.5% of base salary.
Employers are enterprises, cooperatives, individual business households and cooperative groups operating in the fields of agriculture, forestry, fishery and salt industry, which pay wages according to products, the monthly contribution is 0.5% (instead of 1% before) base on the salary fund as the basis for social insurance; the contribution is paid every month, every 3 months or every 6 months.
Therefore, the employer’s contribution is decreased while that of employees is unchanged, as follows:
| Kind of insurance | Before 1/6/2017 | Since 1/6/2017 | ||||
| Employer | Employee | Total | Employer | Employee | Total | |
| Social insurance | 18% | 8% | 26% | 17,5% | 8% | 25,5% |
| Health insurance | 3% | 1.5% | 4,5% | 3% | 1.5% | 4,5% |
| Unemployment insurance | 1% | 1% | 2% | 1% | 1% | 2% |
| Total | 22% | 10.5% | 32.5% | 21.5% | 10.5% | 32% |