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Dear Valued Client,
By Decree No.73/2024/ND-CP, dated June 30th, 2024 "The new Common Minimum wage will be changed to 2,340,000 VND/month from July 1, 2024 (current value is 1,800,000 VND/month). Relating to the change of the Common Minimum wage, the maximum salary to Statutory Social Insurance (SI), Statutory Medical Insurance (MI), and Trade Union (TU) will be increased from 36,000,000 VND/month to 46,800,000 VND/month, as detailed below:- Salary cap for SI: (20 times the statutory pay rate)
- Current common minimum wage: (Up to June 30 2024) (Unit: VND)
- New common minimum wage: (From July 01 2024) (Unit: VND/hour)
| Item | Current common minimum wage |
New common minimum wage |
Increase(Unit:VND) | Increase(Unit:%) |
|---|---|---|---|---|
| Common minimum wage | 1.800.000 | 2.340.000 | 540.000 | 30.00% |
|
Salary Cap for SI |
36.000.000 | 46,800.000 | 10.800.000 | 30.00% |
Effect to employer
- In order to meet the changing labor policy requirements and ensure the rights of employees, we hereby announce an increase in wage costs for contributions to Social Insurance (SI), Health Insurance (HI), and Union fees. These changes aim to improve the quality of services and protect the medical and social rights of all employees.
- For employees with wages higher than the current wage ceiling, the new regulations will apply. Specific changes in contribution levels will be detailed below to ensure fairness and transparency in the implementation of the new wage policy.
| Item | Current maximum contribution (Up to June 30 2024) (Unit: VND |
New maximum contribution (From July 01 2024) (Unit: VND) |
Increase(Unit:VND) | Increase(Unit:%) |
|---|---|---|---|---|
| SI contribution | 6.300.000 | 8.190.000 | 1.890.000 | 30.00% |
|
MI contribution |
1,080.000 | 1,404.000 | 324.000 | 30.00% |
|
TU contribution |
720.000 | 936.000 | 216.000 | 30.00% |
Effect to Employer
- Increased deduction for Social Insurance (SI), Medical Insurance (MI), and Trade Union (TU) contributions for employees who have salaries larger than the current salary cap as below:
| Item | Current maximum contribution (Up to June 30 2024) (Unit: VND |
New maximum contribution (From July 01 2024) (Unit: VND) |
Increase(Unit:VND) | Increase(Unit:%) |
|---|---|---|---|---|
| SI contribution | 2.880.000 | 3.744.000 | 864.000 | 30.00% |
|
MI contribution |
540.000 | 702.000 | 162.000 | 30.00% |
|
TU contribution |
180.000 | 234.000 | 54.000 | 30.00% |
HR Professional Checklist
- List of employees who need to be adjusted the cap of Social Insurance, Medical Insurance, and Trade Union contributions.
- Plan the increase of budget for salary, Social - Medical - Unemployment insurance accordingly.
- Communicate the change to your affected staff.
- Adjust the Salary cap of Social Insurance, Health Insurance, and Trade Union from July 01, 2024, and make sure the payroll is updated with the new salary cap.
What do you need to do?
If you are a customer of HR2B, we are ready to help you with any query concerning this matter. Moreover, we could assist you to check all your employees who have a salary wage under the new regional minimum wage and inform you of your next action to make sure everything is done correctly and in accordance with the law.
Not yet an HR2B’s client?
If you are not a client of HR2B, please call us to know what HR2B can help you with and regularly update the latest changes of the regime of the law of Vietnam.
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