SOCIAL INSURANCE: 02 SALIENT FEATURE IN 2018

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"AN NGUYÊN - AN TÂM GỬI TRỌN NIỀM TIN"

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"AN NGUYÊN - AN TÂM GỬI TRỌN NIỀM TIN"

SOCIAL INSURANCE: 02 SALIENT FEATURE IN 2018

Adopted by the XIII National Assembly on April 20, 2014, Social Insurance Law No. 58/2014/QH13 (“Social Insurance Law 2014”) comes into effect from 1st January 2016 and takes over from the Social Insurance Law No 71/2006/QH11 (“Social Insurance Law 2006”). Especially, the regulations about the labor who has to take part in compulsory social insurance and the monthly salary for compulsory social insurance premium which take effect from 1st January 2018, have a huge impact on the enterprise.

Labor entitled to participate in compulsory social insurance

Social Insurance Law 2014 complements 02 types of the labor entitled to participate in compulsory social insurance, include:

  • Persons working under labor contracts with a term at least 01 full month to under 03 months;
  • Foreign labor who works in Vietnam has Work Permits or practising certificate or practising license issued by Vietnamese competent

Monthly salary for compulsory social insurance premium

According to Social Insurance Law 2006, the monthly salary for calculating the compulsory social insurance premium is the salary stated in the labor contracts.

From 1st January 2018, pursuant to Social Insurance Law 2014, the compulsory social insurance premium shall be calculated be based on:

  • The salary stated in the labor contracts;
  • Allowances;
  • Other additional

Accordingly, the enlargement of the labor participates in compulsory social insurance and the re-determining the method of calculating the monthly salary for compulsory social insurance premiums lead to major changes in the administrative procedures and wage policies of the enterprises. Therefore, the enterprises need to keep up with the new regulations in order to be able to take the initiative in adjusting the enterprise’s regulations in accordance with the law.

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