How does the increase in basic salary to 2.34 million VND affect workers?

Changes in social insurance, health insurance, unemployment insurance contributions

According to Decision 595 of Vietnam Social Insurance (VSI), employees must deduct 8% of their salary every month to participate in compulsory social insurance. Currently, the highest contribution is equal to 20 months of basic salary, so the highest contribution from July 1 will increase from 2.88 million VND to 3.744 million VND/month.

Also according to Decision 595, the monthly salary for health insurance is the monthly salary for compulsory social insurance. Of which, each month, employees pay 1.5%. When the minimum wage increases, the health insurance contribution increases from 540 thousand VND to 702 thousand VND/month.

In addition, according to regulations, employees pay 1% unemployment insurance (UI) every month and the salary used as the basis for UI contribution is up to 20 times the basic salary according to the salary regime paid by the State.

Therefore, when the basic salary increases, the social insurance contribution level is adjusted to increase from 360 thousand VND to 468 thousand VND/month.

Increase health insurance premium when participating as a household

Decree 146 of the Government stipulates that the first person pays health insurance at 4.5% of the basic salary; the second, third, and fourth people pay 70%, 60%, and 50% of the first person's contribution, respectively. From the fifth person onwards, the payment is 40% of the first person's contribution.

Thus, when the first person's contribution increases from 81 thousand VND to 105.3 thousand VND/month, the contribution of the remaining people also increases, respectively in the order of 73.71 thousand VND/month; 63.18 thousand VND/month; 52.65 thousand VND/month and 42.12 thousand VND/month.

Increase the benefit level to 100% of medical examination and treatment costs

According to Decree 146 of the Government, people who have paid health insurance for 5 consecutive years and have the amount of co-payment for medical examination and treatment costs in the year greater than 6 months of basic salary will be paid 100% of the medical examination and treatment costs.

Thus, from July 1, this payment level will increase from VND 10.8 million to VND 14.04 million.

Increase the level of allowance for convalescence and health recovery after illness

The 2014 Social Insurance Law stipulates that the level of health care and recovery benefits after illness per day is equal to 30% of the basic salary.

Therefore, from July 1, when the basic salary increases, the benefit for recuperation and health recovery after illness will increase from 447,000 VND to 540,000 VND/day.

Increase the one-time allowance when giving birth or adopting a child

According to the 2014 Social Insurance Law, female workers who give birth or adopt a child under 6 months old are entitled to a one-time subsidy per child equal to twice the basic salary.

In case of giving birth but only the father participates in social insurance, the father will receive a one-time subsidy equal to 2 times the basic salary in the month of birth for each child.

From July 1, the above subsidy level will be adjusted to increase from VND 2.98 million to VND 3.6 million.

In addition, the level of benefits for recuperation and health recovery after giving birth per day also increased from 447 thousand VND to 540 thousand VND/day.

Increase one-time subsidy for work-related accidents and occupational diseases

The Law on Labor Safety and Hygiene stipulates that employees with a 5% reduction in working capacity will receive 5 times the basic salary, then for each additional 1% reduction, they will receive an additional 0.5 times the basic salary.

From July 1, this level will be adjusted up from 7.45 million VND to 9 million VND if there is a 5% reduction in working capacity; then for each additional 1% reduction, an additional 900,000 VND will be received.

According to the law, workers with a 31% reduction in working capacity are entitled to 30% of the basic salary, then for each additional 1% reduction, they are entitled to an additional 2% of the basic salary. Due to the adjustment of the basic salary, this level increases from 447 thousand VND to 540 thousand VND/month if the working capacity is reduced by 31%, then for each additional 1% reduction, they are entitled to an additional 36 thousand VND/month.

Workers with a reduced working capacity of 81% or more, including spinal paralysis, blindness in both eyes, amputation, paralysis of both limbs, or mental illness, in addition to the monthly allowance, are also entitled to a service allowance equal to the basic salary. From July 1, this level will increase from VND1.8 million to VND2.34 million/month.

Increase the one-time benefit level for death due to work accident or occupational disease

The Law on Labor Safety and Hygiene stipulates that if a worker dies due to a work accident, occupational disease, or dies during treatment without being assessed, his or her relatives will receive a one-time allowance equal to 36 times the basic salary. From July 1, this amount will increase from VND64.8 million to VND84.24 million.

Increase the level of recuperation and health recovery after treatment of injuries and illnesses

According to the Law on Labor Safety and Hygiene, the level of health recovery and recuperation benefits after treatment of injury or illness per day is equal to 30% of the basic salary.

The basic salary increases to 2.34 million VND, then this allowance increases from 540 thousand VND/day to 702 thousand VND/day.

Increase the minimum pension

The 2014 Social Insurance Law stipulates that the lowest monthly pension for employees participating in compulsory social insurance who are eligible for pension is equal to the basic salary.

Therefore, from July 1, this level will increase from 1.8 million VND to 2.34 million VND/month.

Increase monthly funeral and survivor benefits

The 2014 Social Insurance Law stipulates that relatives are entitled to a funeral allowance equal to 10 times the basic salary in the month the employee died. From July 1, this level will increase from VND18 million to VND23.4 million.

In addition, according to the law, the monthly death benefit for each eligible relative is equal to 50% of the basic salary. Therefore, this level has also been adjusted to increase from 900 thousand VND/month to 1.17 million VND/month.

In case the relative has no direct caregiver, the monthly allowance is equal to 70% of the basic salary. Therefore, from July 1, this level will increase from VND 1.26 million to VND 1.638 million/month.