13 April, 2018
The Government of Vietnam has increased the country's monthly regional minimum salary and basic salary for the second time within a year. Currently, the basic salary is VND 1,300,000/month (c. USD57.2/month). With effect from 1 July 2018, the basic salary will be increased by seven per cent to VND1,390,000/month (c. USD60.2/month).
In terms of the monthly regional minimum salary, the new rates applicable as of 1 January 2018 are as follows:
Region 1, including Hanoi and Ho Chi Minh City: VND3,980,000/month (c. USD175/month);
Region 2: VND3,530,000/month (c. USD156/month); Region 3: VND3,090,000/month (c. USD136/month); and Region 4: VND2,760,000/month (c. USD121/month).
The monthly salary of employees, including salary-related allowances, used to calculate monthly health insurance and social insurance contributions to the Social Insurance Fund of Vietnam is capped at 20 times the employee’s basic salary.
Further, the monthly salary of employees used to calculate unemployment insurance is capped at 20 times of the monthly regional minimum salary. Accordingly, the increases of the basic salary and regional minimum salary mean that the corresponding amount of the compulsory insurance contributions will also increase.
For further information, please contact:
Bill Magennis, Partner, Allens
bill.magennis@allens.com.au
Allens is an independent partnership operating in alliance with Linklaters LLP
