Social insurance allowances will increase significantly in 2019
From July 1st, 2019, Clause 8 of Article 4 in Resolution 70/2018/QH14 on State budget estimate for 2019 stipulates the adjustment of the basic monthly salary from 1.39 million VND to 1.49 million VND. Therefore, social insurance allowances will also increase accordingly. Here are 7 social insurance allowances that significantly increase in 2019, employees should seize to relish their rights.
1. The wage ceiling to pay social insurance
The wage ceiling to pay social insurance in accordance with the current law is equal to 20 times the minimum salary. When the Law on Social insurance 2006 came into effect from January 1, 2007, to the end of 2015 and the new Law No. 58/2014/QH13 on Social insurance became effective since January 01, 2016 to present, there have been 8 times of the salary increase, dragging the increase of the wage ceiling to pay social insurance.
From July 01, 2019, the basic monthly salary will be 1.49 million VND per month. As a result, the wage ceiling to pay social insurance will be 29.8 million VND per month instead of 27.8 million VND (because the previous basic monthly salary was 1.39 million VND).
Legal basis: Article 89, Law on Social insurance.
2. The allowance for convalescence and health rehabilitation after sickness
An employee who has taken leave under the sickness regime for the full number of days in a year prescribed in Article 26 of Law on Social insurance, but whose health has not yet recovered within 30 days after return to work, is entitled to a leave of between 5 days and 10 days in a year for convalescence and health rehabilitation. The allowance for convalescence and health rehabilitation after sickness must equal 30% of the basic salary.
Since, from July 1st, 2019, the allowance for convalescence and health rehabilitation after sickness will be adjusted from 417.000 VND per day to 447.000 VND per day.
Legal basis: Article 29, Law on Social insurance.
3. Lump-sum allowance upon childbirth
Female employees giving birth are entitled to a lump-sum allowance equaling 2 times the basic salary for each child in the month of childbirth. In case the mother gives birth to a child but only the father is covered by social insurance, the father is entitled to a lump-sum allowance equaling 2 times the basic salary for each child in the month of childbirth.
From July 1st, 2019, the lump-sum allowance upon childbirth will be 2.98 million VND (the previous allowance was 2.78 million VND).
Legal basis: Article 38, Law on Social insurance.
4. Convalescence and health rehabilitation after the maternity leave period
Female employees whose health has not yet recovered within the first 30 working days after the maternity leave period, are entitled to a leave for convalescence and health rehabilitation of between 5 and 10 days. The allowance for convalescence and health rehabilitation after the maternity leave period must equal 30% of the basic salary.
In detail, the convalescence and health rehabilitation after the maternity leave period from July 1st, 2019 will be 447.000 VND per day, higher than before 30.000 VND per day.
Legal basis: Article 41, Law on Social insurance.
5. Minimum monthly pension
The lowest monthly pension of employees covered by compulsory social insurance who fully satisfy the conditions for pension enjoyment must equal the basic salary (except for exceptional cases).
Consequently, from July 1st, 2019, the minimum monthly pension of employees will be 1.49 million VND.
Legal basis: Article 56, Law on Social insurance.
6. Funeral allowance
When the following persons die, the persons who take charge of their funeral are entitled to a lump-sum funeral allowance:
Employees who are paying social insurance premiums or employees who have their period of social insurance premium payment reserved and have paid social insurance premium payment for at least full 12 months; employees who die of a labor accident or an occupational disease; persons who are on pension or monthly labor accident or occupational disease allowance and have ceased working…
The funeral allowance must equal 10 times the basic salary of the month when the above-mentioned persons die. From July 1st, 2019, the funeral allowance will be 14.9 million VND.
Legal basis: Article 66, Law on Social insurance.
7. Levels of monthly survivorship allowance
When the following persons die, their relatives are entitled to a monthly survivorship allowance:
Employees who have paid social insurance premiums for at least full 15 years but have not yet received a lump-sum social insurance allowance; employees who are on pension; employees who die of a labor accident or an occupational disease; employees who are on monthly labor accident or occupational disease allowance for their working capacity decrease of 61% or more.
The monthly survivorship allowance for each relative must equal 50% of the basic salary or 70% of the basic salary for relatives who have no direct fosterer.
From July 1st, 2019, the monthly survivorship allowance for each relative will increase from 695.000 VND to 745.000 VND per month; the monthly survivorship allowance for relatives who have no direct fosterer will increase from 973.000 VND to 1.043 million VND per person per month.
Legal basis: Article 68, Law on Social insurance.
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