Salary based for Social Insurance Contribution from 1 July 2023 [UPDATED]
COMPULSORY SOCIAL INSURANCE CONTRIBUTION
Once the employment is engaged, both employer and employee are required to contribute Social Insurance (SI), Health Insurance (HI) and Unemployment Insurance (UI) on monthly basis. The Company registers SHUI unit code for SHUI contribution
Foreign labor is required to contribute SHUI under separate SHUI unit code.
THRESHOLD FOR SHUI CONTRIBUTION
Salary for SHUI contribution is based on contractual salary. Basic salary and minimum regional salary are threshold for SHUI calculation, in which SI & HI are capped at 20 times of basic wage whilst UI is capped at 20 times of minimum regional wage.
The current basic salary in 2022 is VND 1,490,000. From 1 July 2023, the basic minimum salary increases to VND 1,800,000 (1). Hence, threshold for SI and HI contribution from 1 July 2023 is VND 36,000,000.
From 1 July 2022, minimum regional salary of Vietnam (2) is:
| Region (3) | Minimum salary (VND) per month | USD equivalent |
| #1 | VND 4,680,000 | USD 200 |
| #2 | VND 4,160,000 | USD 178 |
| #3 | VND 3,640,000 | USD 155 |
| #4 | VND 3,250,000 | USD 140 |
Given from the above, threshold for SI & HI contribution is VND 36,000,000 and for UI contribution is VND 93,600,000; effective from 1 July 2023 respectively.
(1) Decree 24/2023 dated 14 May 2023.
(2) Decree 38/2022 dated 12 June 2022.
(3) Regions categorized in #1, 2, 3, 4 are following appendix in Degree 38/2022.
