For employees contributing to social insurance based on wages determined by the employer, the monthly wage used to calculate social insurance includes salary, salary allowances, and other additional amounts according to labor law. Thus, the employee’s salary is the basis for calculating social insurance, health insurance, and unemployment insurance contributions.

From July 1, 2024, the percentage of social insurance, health insurance, and unemployment insurance contributions will remain the same; the salary level for social insurance, health insurance, and unemployment insurance contributions will be based on the salary scale or agreed labor contract.

With the increase in the base salary and regional minimum wage, the following changes related to employees will occur:

1. Increase in Maximum Health Insurance Contribution:

According to Clause 3, Article 89 of the 2014 Social Insurance Law, if an employee’s monthly salary exceeds 20 times the base salary, the health insurance contribution is capped at 20 times the base salary. 

Therefore, when the base salary increases to VND 2,340,000/month from July 1, 2024, the maximum health insurance contribution also increases.

– Specifically: From VND 36,000,000/month to VND 48,600,000/month.

2. Increase in Maximum Compulsory Social Insurance Contribution:

If the social insurance contribution exceeds 20 times the base salary, the contribution is capped at 20 times the base salary. Thus, with the base salary increase from July 1, 2024, the maximum social insurance contribution also increases.

– Specifically: From VND 36,000,000/month to VND 48,600,000/month.

3. Increase in Maximum Unemployment Insurance Contribution:

If the employee’s monthly salary exceeds 20 times the regional minimum wage, the unemployment insurance contribution is capped at 20 times the regional minimum wage. When the regional minimum wage, the maximum unemployment insurance contribution also increases.

– Specifically: From VND 93,600,000/month to VND 99,200,000/month.

4. Increase in Convalescence and Health Rehabilitation Allowance after Illness:

The convalescence and health rehabilitation allowance after illness is 30% of the base salary per day, as stipulated in Clause 3, Article 29 of the 2014 Social Insurance Law. From July 1, 2024, this allowance also increases.

– Specifically: From VND 540,000/day to VND 702,000/day.

5. Increase in lump-sum allowance upon childbirth or child adoption: 

According to Article 38 of the 2014 Social Insurance Law, female employees giving birth or adopting a child under 6 months old receive a one-time allowance equal to 2 times the base salary for each child. 

In cases where only the father participates in social insurance, the father receives a one-time allowance equal to 2 times the base salary in the month of childbirth for each child.

– Specifically: From VND 3,600,000 to VND 4,680,000.

6. Increase in Convalescence and Health Rehabilitation Allowance after Maternity:

The convalescence and health rehabilitation allowance after maternity is 30% of the base salary per day, as stipulated in Clause 3, Article 41 of the 2014 Social Insurance Law. From July 1, 2024, this allowance also increases.

– Specifically: From VND 540,000/day to VND 702,000/day.

These are some of the changes in social insurance related to the base salary adjustment and regional minimum wage adjustment from July, 01, 2024.

References:

– Social Insurance Law No.: 58/2014/QH13 dated November 20, 2014

– Decree 73/2024/ND-CP issued on June 30, 2024

– Decree 74/2024/ND-CP issued on June 30, 2024