The general minimum wage increases from July 1, 2019
We would like to update that Vietnamese Government just issued Decree No.38/2019/NĐ-CP on 09 May 2019 stipulating the common minimum salary rate with effect from 01 July 2019. Pursuant to the Decree, the common minimum salary shall increase from VND1,390,000/month to VND 1,490,000/ month from 01 July 2019. In accordance with that, from July 2019 the maximum salary base for social, health, labor accident and occupation diseases insurances as well as trade union contribution (which is equal to 20 times of common minimum salary) shall increase from VND 27,800,000/month to VND 29,800,000/ month.
Ceiling salary as a basis for compulsory insurance
In summary, from July 2019, the capped salary base for compulsory insurances and trade union contribution would be as follows:
In addition, from 01 July 2019, the trade union member fee which is born by the employee joining the Trade Union at the rate of 1% of the monthly salary base subject to social insurance contribution would be capped at VND 149,000/person/month (equal to 10% of common minimum salary rate).
Should you have any concerning queries, please feel free to contact our Human Resources Consultancy Department for further advice.
Refer to the new common minimum salary w.e.f 01 Jul 17