Ask:

Mai Lan sent a letter to Truong Quyen Law Office with the following content:

“My company is in Dong Anh district, Hanoi and I have worked at the company for 2 years now. However, the company pays net salary but due to negligence, I did not ask how much my specific monthly social insurance payment is. I see colleagues telling the company to pay social insurance for employees at a basic level, which is the minimum social insurance level. I would like to ask how the social insurance premium is calculated and what is the current minimum insurance premium of my company?

Reply:

Thank you Mai Lan for trusting and sending your question to Truong Quyen Law Office. To your question, we would like to answer as follows:

1. How is the social insurance premium calculated?

Pursuant to Decision 595/QD-BHXH issued on April 14, 2017 and the Law on Social Insurance,Social Insurance payment rates will be calculated based on the rate of contribution to the employee's insurance funds and the monthly salary paid for social insurance.

Social insurance payment rate = Payment rate x Monthly salary paid for social insurance

In there:

- Closing rate: is the rate of contribution to the compulsory insurance fund that is adjusted according to the provisions of law in each period.

Currently, the employee contribution rate is 10.5% (of which social insurance is 8%, unemployment insurance fund is 1%, unemployment insurance fund is 1.5%) for Vietnamese employees. For foreign workers, pay 1.5% into the health insurance fund.

- Monthly salary paid for social insurance: is the social insurance salary agreed upon by the employee with the employer; this salary is not necessarily the net salary.

2. About the minimum social insurance payment level?

The monthly salary paid for social insurance must be greater than or equal to the regional minimum wage. Based on Article 3, Decree 90/2019/ND-CP, the minimum monthly salary paid for social insurance of employees is prescribed according to the regional minimum salary as follows:

- Region I: 4,420,000 VND/month.

- Region II: 3,920,000 VND/month.

- Region III: 3,430,000 VND/month.

- Region IV: 3,070,000 VND/month.

Mai Lan's company is in Dong Anh, Hanoi => the company is in region I so the current minimum social insurance payment is 4,420 VND/month. However, the social insurance premium also depends on the job you are doing and your qualifications and working position.

Because you did not clearly state your position and job, we cannot accurately determine your minimum social insurance salary. However, you can determine your own minimum social insurance salary as follows:

- If you work in a job or title that requires trained or vocational workers (including workers trained by the enterprise themselves) and must be at least 7% higher than the regional minimum wage.

=> Your minimum social insurance salary at the moment is 4,729,400 VND/month.

- If you work in a job or title with heavy, hazardous or dangerous working conditions, it must be at least 5% higher than the salary of a job or title of equivalent complexity, working in working conditions. normal labor conditions.

=> Your minimum social insurance salary at the moment is 4,641,000 VND/month.

- If the job or title has particularly heavy, toxic or dangerous working conditions, it must be at least 7% higher than the salary of the job or title with equivalent complexity, working in working conditions. normal labor conditions.

=> Your minimum social insurance salary at the moment is 4,729,400 VND/month.

Most districts in Hanoi have a minimum wage in region I. A small number of remaining districts will belong to region II, including districts such as Ba Vi, Dan Phuong, Phu Xuyen, Phuc Tho, Ung Hoa, and My Duc. Employees need to pay attention to be able to calculate the minimum social insurance payment for themselves.