Social insurance in Vietnam – Contribution of enterprises from June 2017

Thay đổi mức đóng BHXH của doanh nghiệp từ tháng 6/2017

Social insurance in Vietnam – Contribution of enterprises from June 2017

Vietnam social insurance – changes from June 2017

On April 14th, 2017, the government issued the Decree No.47/2017/NĐ-CP regulating the rates of Vietnam social insurance enterprises’ contribution paid in the Insurance Fund for labor accidents and occupational sickness. This will be a change affecting companies’ internal hr management in the future.

vietnam social insurance

Vietnam social insurance

Accordingly, The employers only have to pay 0,5% (current regulation is 1%) of their salary fund which is based to calculate the social insurance for labor accident and occupational sickness fund of employees.

Therefore, the total premium will be reduced to 32% from 01/06/2017. While the current regulation is 32.5%.

This decree will be effective from  June 01st, 2017.

Social premium is reduced but the base salary is expected to rise to VND 1,300,000 and insurance claims (on total wages and allowances), whereby, will be increased in the future.

In order to properly and optimally comply with the state regulations, manage and control monthly payrolls, customers should recalculate the payroll system, salary structure, allowances and the labor contract for proper compliance and cost optimization.

 

VIVA has been an in-depth consultant on business compliance procedures in Vietnam since 2006, based on our professional - integrated background in Business laws - Accounting and corporate finance - Tax management - Labor relation and payroll – Business administration procedures. VIVA offers exclusive services in an integrated tailor-made, consist of 5 specialized-expertise platforms and the inheritance experience up to hundreds of years for every job.

Our extensive expertise and management system that facilitates us to connect local resources and be ready to deliver exclusive solutions that exceed all standard limits and satisfy all expectations of our clients.

 

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Last Updated on August 12, 2020