The common minimum wage increase to 1,050,000 VND from 1st May 2012
On 12thApr 2012, Government issued Decree No 31/2012/NĐ-CP regulation on the common minimum wage, taking effective from 1stMay 2012. According to this Decree, the common monthly minimum wage will be raised from the current VND 830,000 to VND 1,050,000, increasing by VND 220.000 from current minimum rate.
The maximum salary contribution to Social Insurance, Health Insurance as well as Unemployment Insurance will be risen up to 21,000,000 VND instead of the current amount of 16,600,000 VND.
Therefore, for an employee who has his/her gross salary (contract salary) higher than 20 times of minimum wage, the wage for insurance calculation will be:
The wage for insurance calculation = 20 x VND 1,050,000 = VND 21,100,000
For example on salary of USD 1,200 (equal to VND 24,993,600), the insurance contribution of the employee and the employer will be applied as below:
| Current | 1st May 2012 up to | Increase amount | |||||||
| The wage for insurance | 16.600.000 | 21.100.000 | |||||||
| SI | MI | UI | Total | SI | MI | UI | Total | ||
| Employee | 1.162.000 | 249.000 | 166.000 | 1.577.000 | 1.477.000 | 316.500 | 211.000 | 2.004.500 | 427.500 |
| Employer | 2.822.000 | 498.000 | 166.000 | 3.486.000 | 3.587.000 | 633.000 | 211.000 | 4.431.000 | 945.000 |
| Total | 3.984.000 | 747.000 | 332.000 | 5.063.000 | 5.064.000 | 949.500 | 422.000 | 6.435.500 | 1.372.500 |
Decree No 31/2012/NĐ-CP is replaced for Decree No 22/2011/NĐ-CP dated 04/04/2011 by Government. This decree takes effective from 1st June 2012. However the regulations of this decree will be applied from 1st May 2012.
Recent Posts
7 Bold Reasons Why Tokenization in Vietnam Could Transform Your Future
Change is coming. Quietly. Digitally. Rapidly. Let’s imagine the situation, which assets are no longer…
Vietnam P2P Lending: 5 Bold Reasons Why Decree 94/2025 Could Empower Millions or Backfire?
A New Financial Chapter Begins in Vietnam One person lends. Another borrows. It’s that simple.…
5 Essential Lessons from Risk Management in Digital Assets in Vietnam: Protecting Trust in a Digital World
Trust Is the Real Currency Money can be lost. Tokens can vanish. Platforms can crash.…
5 Powerful Reasons Why Vietnam Digital Asset Sandbox Is a Bold and Hopeful Move for Innovation
Change is fast. Rules are slow. But innovation can’t wait. As digital assets grow, so…
4 Critical Steps to Effectively Terminate The Employment Contracts with Confidence and Compassion
To terminate the employment contracts can be a complex and often sensitive process, especially when…
8 Insights from a Due Diligence Attorneys in Vietnam for Successful M&A Deals
Navigating the complex landscape of mergers and acquisitions (M&A) in Vietnam can be a daunting…