How to calculate social insurance (SI), health insurance (HI), unemployment insurance (UI) contributions? Regulations on new basic salary and regional minimum wage in 2025.
I. Regulations on basic salary and regional minimum wage in 2025
1. Regulations on basic salary in 2025
The basic salary is the salary used as the basis for calculating salary, allowances and other benefits according to regulations.
1.1. Subjects applying the new basic salary
- Officials and civil servants in state agencies;
- Officials in public service units;
- People working under labor contracts at agencies and public service units;
- People working on the state payroll;
- Officers, professional soldiers of the People’s Army and People’s Police;
- People working in key organizations;
- People working in non-professional organizations at the commune/ward, village/residential group level.
1.2. Cases where the basic salary is applied
The basic salary is applied to groups of people working in state agencies and public service units, and those receiving salaries from the state budget. This means that the basic salary does not apply to those working in enterprises and organizations established and operating under the Enterprise Law.
From the basic salary and salary coefficient of each civil servant and public employee, the salary, benefits and professional responsibility and title allowances (if any) will be calculated.
1.3. Increase basic salary in 2025
On June 21, 2024, the Central Executive Committee issued Conclusion 83-KL/TW of the Politburo, officially concluding the adjustment of the basic salary as follows:
- Increase 30% of basic salary – increasing basic salary from 1,800,000 VND to 2,340,000 VND;
- Applicable time: From July 1, 2024.
2. Regulations on regional minimum wages in 2025
Is the lowest wage that a business is allowed to pay its employees under normal conditions, working enough hours in a month and completing assigned work. The minimum wage is regulated to ensure a minimum standard of living for employees.
2.1. Subjects applying regional minimum wage
- Employees work under labor contracts established based on the provisions of the Labor Code;
- Enterprises established and operating under the Law on Enterprises;
- Cooperatives, business households, individuals, organizations, and agencies that use and hire workers to work under agreements;
- Other individuals, organizations and agencies related to the implementation and application of minimum wages as prescribed.
2.2. Cases where regional minimum wages are applied
From the above regulations on subjects, you can see that the regional minimum wage only applies to employees working in domestic and foreign enterprises and cooperatives… and does not apply to civil servants, public employees, and people working in state agencies and public service units.
There are 4 minimum wages according to economic regions. Enterprises in which economic regions apply the minimum wage according to that region. Accordingly, the regional minimum wages are specified in the following table.
| From 01/07/2022 | |||
| Region I | Region II | Region III | Region IV |
| 4.680.000 | 4.160.0000 | 3.640.0000 | 3.250.0000 |
(Unit: VND/month)
2.3. Increase regional minimum wage 2025
According to Decree 74/2024/ND-CP, the Politburo also concluded on salary reform, specifically increasing the regional minimum wage. Accordingly, from July 1, 2024, the regional minimum wage will increase by 6% compared to the 2023 regional minimum wage and will be applied according to the following table:
|
From 01/07/2024 |
|||
| Region I | Region II | Region III | Region IV |
| 4.960.000 | 4.410.000 | 3.860.000 | 3.450.000 |
(Unit: VND/month)
>> See details: List of areas applying regional minimum wage.
II. Basic salary, regional minimum salary over the years, penalty for paying salary lower than regional minimum
1. Regulations on basic salary over the years
The basic salary is always adjusted every year to match the inflation of the economy to meet the living needs of civil servants, public employees, and people working under the state payroll.
To make adjustments to the basic salary, the state will base on the budget and the socio-economic situation at the time of the adjustment decision.
➤ Summary of basic salary over the years
| Time of application | Base salary | Legal basis |
| 01/10/2004 – 30/09/2005 | 290,000 VND | Decree 203/2004/ND-CP |
| 01/10/2005 – 30/09/2006 | 350,000 VND | Decree 118/2005/ND-CP |
| 01/10/2006 – 31/12/2007 | 450,000 VND | Decree 94/2006/ND-CP |
| 01/01/2008 – 30/04/2009 | 540,000 VND | Decree 166/2007/ND-CP |
| 01/05/2009 – 30/04/2010 | 650,000 VND | Decree 33/2009/ND-CP |
| 01/05/2010 – 30/04/2011 | 730,000 VND | Decree 28/2010/ND-CP |
| 01/05/2021 – 30/04/2012 | 830,000 VND | Decree 22/2011/ND-CP |
| 01/05/2012 – 30/06/2013 | 1,050,000 VND | Decree 31/2012/ND-CP |
| 01/07/2013 – 30/04/2016 | 1,150,000 VND | Decree 66/2013/ND-CP |
| 01/05/2016 – 30/06/2017 | 1,210,000 VND | Decree 47/2016/ND-CP |
| 01/07/2017 – 30/06/2018 | 1,300,000 VND | Decree 47/2017/ND-CP |
| 01/07/2018 – 30/06/2019 | 1,390,000 VND | Decree 72/2018/ND-CP |
| 01/07/2019 – 30/06/2023 | 1,490,000 VND | Decree 38/2019/ND-CP |
| 01/07/2023 – 30/06/2024 | 1,800,000 VND | Decree 24/2023/ND-CP |
| From 01/07/2024 | 2,340,000 VND | Conclusion 83-KL/TW |
So:
From July 1, 2024, the basic salary will increase from VND 1,800,000/month to VND 2,340,000/month.
Learn more:
>> Latest regulations of the Social Insurance Law 2025;
>> Regulations on building salary scales;
>> Latest salary and bonus regulations and allowances;
>> New points on salary policy 2025 (according to Resolution 27-NQ/TW).
2. Regulations on regional minimum wages over the years
Similar to the basic salary, the regional minimum wage also needs to be adjusted over the years to meet the quality of life of workers, in accordance with the payment capacity of businesses and the economic development of the country.
➤ Summary of regional minimum wages over the years (up to present)
| Time | Salary
(VND/month) |
Pursuant to Decree No. | |||
| Region I | Region II | Region III | Region IV | ||
| From 01/01/2009 | 800.000 | 740.000 | 690.000 | 650.000 | 110/2008/ND-CP |
| From 01/01/2010 | 980.000 | 880.000 | 810.000 | 730.000 | 97/2009/ND-CP |
| From 01/01/2011 | 1.350.000 | 1.200.000 | 1.050.000 | 830.000 | 108/2010/ND-CP |
| From 01/01/2012 | 2.000.000 | 1.780.000 | 1.550.000 | 1.400.000 | 70/2011/ND-CP |
| From 01/01/2013 | 2.350.000 | 2.100.000 | 1.800.000 | 1.650.000 | 103/2012/ND-CP |
| From 01/01/2014 | 2.700.000 | 2.400.000 | 2.100.000 | 1.900.000 | 182/2013/ND-CP |
| From 01/01/2015 | 3.100.000 | 2.750.000 | 2.400.000 | 2.150.000 | 103/2014/ND-CP |
| From 01/01/2016 | 3.500.000 | 3.100.000 | 2.700.000 | 2.400.000 | 122/2015/ND-CP |
| From 01/01/2017 | 3.750.000 | 3.320.000 | 2.900.000 | 2.580.000 | 153/2016/ND-CP |
| From 01/01/2018 | 3.980.000 | 3.530.000 | 3.090.000 | 2.760.000 | 141/2017/ND-CP |
| From 01/01/2019 | 4.180.000 | 3.710.000 | 3.250.000 | 2.920.000 | 157/2018/ND-CP |
| From 01/01/2020 | 4.420.000 | 3.920.000 | 3.430.000 | 3.070.000 | 90/2019/ND-CP |
| From 01/07/2022 | 4.680.000 | 4.160.000 | 3.640.000 | 3.250.000 | 38/2022/ND-CP |
| From 01/07/2024 | 4.960.000 | 4.410.000 | 3.860.000 | 3.450.000 | 74/2024/ND-CP |
3. Penalty for paying wages lower than the regional minimum wage
The regional minimum wage is the wage set by the government to ensure the lives and rights of workers. If employers pay wages lower than the regional minimum wage, they will be fined according to Decree 12/2022/ND-CP.
Depending on the number of employees that the employer violates, the regulations on fines will be different, specifically according to the following table.
3.1. For individuals paying wages to employees who violate the law
| Fine | Number of employees |
| 20,000,000 – 30,000,000 VND | 1 – 10 |
| 30,000,000 – 50,000,000 VND | 11 – 50 |
| 50,000,000 – 75,000,000 VND | 51 and up |
3.2. For violating enterprises and organizations
| Fine | Number of employees |
| 40,000,000 – 60,000,000 VND | 1 – 10 |
| 60,000,000 – 100,000,000 VND | 11 – 50 |
| 100,000,000 – 150,000,000 VND | 51 and up |
So:
As you can see, businesses and organizations will be fined twice as much as individuals if they violate the regulations on paying wages below the regional minimum.
III. Monthly salary for social insurance, health insurance, unemployment insurance
1. Minimum salary for social insurance, health insurance, unemployment insurance
Pursuant to Point 2.6, Clause 2, Article 6 of Decision 595/QD-BHXH dated April 14, 2017 and the guidance in Section 3 of Official Dispatch 1952/BHXH-TST dated April 28, 2023, the minimum salary for social insurance, health insurance and unemployment insurance is prescribed as follows:
- Group 1 – For employees doing simple jobs that do not require expertise or technical skills, under normal working conditions, the compulsory social insurance, health insurance, and unemployment insurance contribution level must not be lower than the regional minimum wage;
- Group 2 – For employees doing jobs that require specialized and technical training, the minimum social insurance, health insurance, and unemployment insurance contribution rate is 7% higher than the regional minimum wage.
Note:
At the time Decree 38/2022/ND-CP takes effect, enterprises are not required to apply the regulations on minimum wage for social insurance, health insurance, and unemployment insurance for employees in group 2. However, enterprises that have been applying a contribution rate 7% higher than the regional minimum wage can consider the following options:
- Continue to apply a contribution rate 7% higher than the regional minimum wage;
- Proactively review labor contracts, collective labor agreements or enterprise regulations to adjust and apply appropriate contribution rates. If the agreements in labor contracts or signed documents of the same value have more favorable content for employees than Decree 38/2022/ND-CP, enterprises will continue to apply it as the basis for social insurance contributions.
➤ Minimum salary table for social insurance, health insurance, unemployment insurance by region, different job requirements under normal working conditions
| Minimum regional social insurance salary | Group 1 employees | Employees in group 2 | ||
| As of June 30, 2024 | From 01/07/2024 (*) | As of June 30, 2024 | From 01/07/2024 (**) | |
| Region I | 4,680,000 VND | 4,960,000 VND | 5,007,600 VND | 5,307,200 VND |
| Region II | 4,160,000 VND | 4,410,000 VND | 4,451,200 VND | 4,718,700 VND |
| Region III | 3,640,000 VND | 3,860,000 VND | 3,894,800 VND | 4,130,200 VND |
| Region IV | 3,250,000 VND | 3,450,000 VND | 3,477,500 VND | 3,691,500 VND |
(*), (**): According to Decree 74/2024/ND-CP regulating the minimum wage for employees working under labor contracts of the Ministry of Labor – Invalids and Social Affairs.
2. Maximum salary for social insurance, health insurance, unemployment insurance
- The highest salary when participating in social insurance and health insurance is 20 times the basic salary:
- 20 x 1,800,000 = 36,000,000 VND/month (applicable from now until June 30, 2024);
- 20 x 2,340,000 = 46,800,000 VND/month (effective from July 1, 2024);
- The highest salary when participating in social insurance is 20 times the regional minimum wage.
For example:
Mr. A is a skilled worker and works under normal conditions in region I. The regional minimum wage applied to calculate the maximum level of social insurance participation for Mr. A is:
- 20 x 4,680,000 = 93,600,000 VND/month (considered from now until June 30, 2024);
- 20 x 4,960,800 = 99,216,000 VND/month (considered from July 1, 2024).
Note:
The regional minimum wage for calculating the maximum social insurance contribution does not include the 7% higher rate for qualified workers.
3. Salary for social insurance, health insurance, unemployment insurance in case the employee signs official contracts in many places
Unlike workers who sign labor contracts at only one place and pay insurance at a single salary, workers who sign contracts at many places have the following differences:
- For social insurance: Including sickness, maternity, retirement, death, occupational accident and disease insurance:
- Sickness, maternity, retirement and death insurance: Pay insurance at the first place where the labor contract is signed;
- Occupational accident and disease insurance: Pay insurance at all places where you have signed a labor contract for 1 month or more.
- For health insurance: Pay health insurance at the place with the highest payment rate;
- For unemployment insurance: Similar to sickness, maternity, and death insurance, employees who sign labor contracts in many places must pay unemployment insurance at the place where they first signed the contract.
IV. Social insurance, health insurance, unemployment insurance contribution levels over the years for businesses and employees
1. For Vietnamese workers
➤ Social insurance, health insurance, unemployment insurance contribution rate from 2018 to present
| Employers | Workers | ||||||||
| Social insurance | Social Insurance | Health insurance | Social insurance | Social Insurance | Health insurance | ||||
| HT | ÔĐ-TS | TNLĐ-BNN | HT | ÔĐ-TS | TNLĐ-BNN | ||||
| 14% | 3% | 0.5% | 1% | 3% | 8% | – | – | 1% | 1.5% |
| 21.5% | 10.5% | ||||||||
| 32% | |||||||||
2. For foreign workers who have signed an official contract with a business in Vietnam
➤ Social insurance, health insurance, unemployment insurance contribution rates from December 1, 2018 to December 31, 2021
| Employers | Workers | ||||||||
| Social insurance | Social Insurance | Health insurance | Social insurance | Social Insurance | Health insurance | ||||
| HT | ÔĐ-TS | TNLĐ-BNN | HT | ÔĐ-TS | TNLĐ-BNN | ||||
| – | 3% | 0.5% | – | 3% | – | – | – | – | 1.5% |
| 6.5% | 1.5% | ||||||||
| 8% | |||||||||
➤ Social insurance, health insurance, unemployment insurance contribution rates from January 1, 2022 to present
| Employers | Workers | ||||||||
| Social insurance | Social Insurance | Health insurance | Social insurance | Social Insurance | Health insurance | ||||
| HT | ÔĐ-TS | TNLĐ-BNN | HT | ÔĐ-TS | TNLĐ-BNN | ||||
| 14% | 3% | 0.5% | – | 3% | 8% | – | – | – | 1.5% |
| 20.5% | 9.5% | ||||||||
| 30% | |||||||||
3. Support to reduce insurance premiums
In 2021, due to the complicated developments of the Covid-19 epidemic, businesses were severely affected, so the government issued 2 specific support resolutions:
- Resolution No. 68/NQ-CP issued on July 1, 2021 supports reducing the occupational accident and disease insurance premium to 0% from July 1, 2021 to June 30, 2022;
- Resolution No. 116/NQ-CP issued on September 24, 2021 supports reducing unemployment insurance premiums to 0% from October 1, 2021 to September 30, 2022 for businesses participating in unemployment insurance as of September 30, 2022.
Subjects eligible for support to reduce insurance premiums: Employers except state agencies, socio-political organizations, people’s armed forces units, and public service units.
If the business is eligible for support, the business deducts the corresponding insurance premiums for the corresponding period.
V. Penalty for not paying social insurance, health insurance, unemployment insurance
- If a company is subject to compulsory insurance but does not participate in compulsory insurance for all employees, the company may be fined from 18% to 20% of the total amount of compulsory insurance, up to a maximum of VND 75,000,000;
- If a company evades compulsory insurance payments but not to the extent of criminal prosecution, the fine will be from VND 50,000,000 to VND 75,000,000;
- In addition to the above penalty, the company will have to pay additional insurance arrears and late payment interest;
- If the amount reaches the level of criminal liability, the company may be prosecuted.
VI. Union fee payment level of enterprises
The monthly union fee contribution is 2% of the company’s salary fund to pay social insurance for employees.
For example:
The company pays social insurance for 5 employees with the social insurance salary for each employee being 6,000,000 VND/employee. Thus, the salary fund for social insurance is 30,000,000 VND. The union fee to be paid is 600,000 VND/month.
See also:
>> How to calculate union fee payment;
>> Distinguish between union funds and union dues.
VII. Some frequently asked questions about salary and insurance contribution rates
1. Do I have to pay social insurance if I take maternity leave for more than 14 days/month?
During maternity leave of more than 14 days/month, both the employer and the employee do not have to pay social insurance. However, the employee’s maternity leave is still counted in the social insurance payment process, and they are still entitled to the same benefits as if they were paying social insurance. During maternity leave, the employee is covered by the social insurance agency to ensure their rights when examining and treating patients.
2. What is the basic salary? How is the basic salary different from the basic salary and the regional minimum wage?
➤ For civil servants and public employees:
- Basic salary = Basic salary x Salary coefficient;
- Salary coefficient: Each civil servant and public employee will have a different salary coefficient depending on the characteristics of the job position, seniority, etc.
➤ For employees in enterprises:
- The basic salary is the salary agreed upon by the employee and the employer, but must not be lower than the regional minimum wage.
Thus, the basic salary is different from the basic salary and the regional minimum salary but is related to each other. In other words, the basic salary is calculated and given based on the basic salary and the regional minimum salary.
3. Will employees be penalized if they agree with their employers not to participate in compulsory insurance?
According to Article 39 of Decree 12/2022/ND-CP, employees will be fined from VND 500,000 to VND 1,000,000 if they agree with their employers not to participate in compulsory insurance or participate in the wrong subjects or at the wrong level as prescribed. In addition, businesses can also be fined according to the fine levels for evading participation in social insurance, health insurance, and unemployment insurance.