Social insurance participation rate. Maximum and minimum social insurance (SI), health insurance (HI), unemployment insurance (UI) contribution rates for businesses and employees.
I. Rate of participation in social insurance, health insurance, unemployment insurance of enterprises and employees
1. For domestic workers
The rate of participation in social insurance, health insurance and unemployment insurance for domestic workers is 32%, specifically according to the following tables.
➤ For businesses and organizations (Vietnamese employers):
| Insurance type | Social insurance | Health insurance | Social Insurance | ||
| Fund | Retirement and death benefits | Sickness, maternity | TNLĐ – BNN | ||
| Closing level | 14% | 3% | 0,5% | 3% | 1% |
| Total | 21,5% | ||||
➤ For Vietnamese workers:
| Insurance type | Social insurance | Health insurance | Social Insurance | ||
| Fund | Retirement and death benefits | Sickness, maternity | TNLĐ – BNN | ||
| Closing level | 8% | – | – | 1,5% | 1% |
| Total | 10,5% | ||||
2. For foreign workers
The rate of participation in social insurance, health insurance and unemployment insurance for foreign workers is 30%, specifically according to the following tables.
➤ For businesses and organizations (foreign employers):
| Insurance type | Social insurance | Health insurance | Social Insurance | ||
| Fund | Retirement and death benefits | Sickness, maternity | TNLĐ – BNN | ||
| Closing level | 14% | 3% | 0,5% | 3% | – |
| Total | 20,5% | ||||
➤ For foreign workers:
| Insurance type | Social insurance | Health insurance | Social Insurance | ||
| Fund | Retirement and death benefits | Sickness, maternity | TNLĐ – BNN | ||
| Closing level | 8% | – | – | 1,5% | – |
| Total | 9,5% | ||||
Note:
For enterprises operating in industries with high risks of work-related accidents and occupational diseases, if they meet the conditions and have a written request approved by the Ministry of Labor, War Invalids and Social Affairs, they will be allowed to contribute to the work-related accident and occupational disease fund at a lower rate of 0.3%.
Refer to the list of occupations with high risk of occupational accidents and diseases in Circular No. 07/2016/TT-BLDTBXH.
>> See more: How to calculate occupational accident and disease benefits.
II. Salary levels for social insurance, health insurance, unemployment insurance for businesses and employees
1. Minimum contribution salary
The salary level for social insurance contributions for civil servants and public employees is regulated by the state, while for organizations and enterprises, it is decided by the unit.
1.1 For employees working at the enterprise
Pursuant to Article 3 of Decree 38/2022/ND-CP, the monthly regional minimum wage and hourly minimum wage for employees working at enterprises by region are as follows:
| Region | Minimum monthly wage
(VND/month) |
Minimum hourly wage
(VND/hour) |
| Region I | 4.680.000 | 22.500 |
| Region II | 4.160.000 | 20.000 |
| Region III | 3.640.000 | 17.500 |
| Region IV | 3.250.000 | 15.600 |
>> Refer to: List of areas of region I, region II, region III, region IV according to the appendix issued with Decree 38/2022/ND-CP.
1.2 For civil servants and public employees working at state agencies
Pursuant to Article 3 of Decree 38/2019/ND-CP from July 1, 2019 to June 30, 2023, the minimum salary for social insurance, health insurance, and unemployment insurance for civil servants and public employees will be based on the basic salary of VND 1,490,000/month.
And from July 1, 2023, according to Decree 24/2023/ND-CP, the basic salary will be increased to 1,800,000 VND/month.
2. Maximum contribution salary
According to the provisions of Section 3 of Official Dispatch 1952/BHXH-TST:
➤ Monthly salary for social insurance, health insurance, and occupational accident and disease insurance must not exceed 20 times the basic salary.
| Maximum salary for social insurance and health insurance | |
| Before 01/07/2023 | 1,490,000 x 20 = 29,800,000 VND/month |
| From 01/07/2023 | 1,800,000 x 20 = 36,000,000 VND/month |
➤ The maximum monthly salary for social insurance contribution will be equal to 20 times the regional minimum wage.
| Maximum salary for social insurance contribution | |
| Region I | 4,680,000 x 20 = 93,600,000 VND/month |
| Region II | 4,160,000 x 20 = 83,200,000 VND/month |
| Region III | 3,640,000 x 20 = 72,800,000 VND/month |
| Region IV | 3,250,000 x 20 = 65,000,000 VND/month |
3. Salary for social insurance, health insurance, unemployment insurance for foreigners paid in foreign currency
According to Article 26 of Decree No. 115/2015/ND-CP dated November 11, 2015 of the Government detailing a number of articles of the Law on Social Insurance on compulsory social insurance, employees whose salaries are paid in foreign currency will have their monthly salary for social insurance payment converted into Vietnamese Dong.
The basis for conversion to Vietnamese Dong is based on the average exchange rate on the interbank foreign exchange market. This exchange rate is announced by the State Bank of Vietnam on January 2 for the first 6 months of the year and on July 1 for the last 6 months of the year. Specifically:
- From January 3, 2023, the foreign currency exchange rate converted to Vietnamese Dong for the first 6 months of 2023 is: 23,606 VND/USD (according to Notice No. 16/BHXH-TST);
- From July 1, 2023, the foreign currency conversion rate in Vietnamese Dong for the last 6 months of 2023 is: 23,800 VND/USD (according to Notice No. 3095/BHXH-TST).
See also:
>> Basic salary, regional minimum wage – Regulations, penalties;
>> Social insurance registration service for businesses – From 1,500,000 VND.
III. Example of salary for social insurance, health insurance, unemployment insurance
Ms. A has been working at the company since January 2023, her social insurance salary is 6,000,000 VND/month. Based on the social insurance contribution rate prescribed by the state, the monthly social insurance contribution amount of the company and Ms. A is as follows:
- Deducted from business expenses is 21.5% = 6,000,000 x 21.5% = 1,290,000 VND;
- Deducted from Ms. A’s salary is 10.5% = 6,000,000 x 10.5% = 630,000 VND.
IV. Frequently asked questions about salary for social insurance, health insurance, unemployment insurance
1. Who does the business have to pay social insurance for?
There are 4 groups of subjects that businesses are required to pay social insurance for, including:
- Business managers receive salaries;
- Employees working under labor contracts with a working term from 1 full month to less than 3 months;
- People working under a labor contract with a definite or indefinite term, seasonal or for a certain job with a working term from 3 months to less than 12 months;
- Workers are foreign citizens working in Vietnam and have a work permit for foreigners or a professional certificate issued by a competent authority of Vietnam.
>> See more: Work permit service.
2. Are businesses required to register for social insurance?
Registering for social insurance is the responsibility and obligation of the enterprise when employing labor. The enterprise must carry out the procedure of registering for social insurance for the first time within 30 days from the date the enterprise signs the labor contract or recruits the employee.
3. How will businesses that do not pay social insurance for their employees be penalized?
- In case the enterprise does not pay social insurance and unemployment insurance for all employees, the fine will be from 18% to 20% of the total amount of compulsory social insurance and unemployment insurance payable at the time the enterprise is recorded as an administrative violation;
- In case the enterprise does not pay for some individual cases, it will be fined from 12% to 15% of the total amount of compulsory social insurance and unemployment insurance.
>> See more: Regulations on social insurance payment deadline of enterprises.
4. What documents need to be submitted for the first time social insurance registration for businesses?
The application documents include:
- Form TK3-TS and form D02-LT (enterprise declaration);
- Copy of business registration certificate;
- Labor contract;
- Form TK1-TS (declared by employee).
>> See details: Procedures for first-time social insurance registration for businesses.