As expected, from July 1, 2020, the base salary will increase to 1.6 million VND/month. This is not only the joy of cadres, civil servants and public employees but also the expectation of thousands of employees at enterprises today.
According to the law, the base salary is the salary used as the basis for calculating the premium rate as well as the benefit rate of many insurance regimes. Therefore, the impact of the increase in base salary on employees from July 1, 2020 when the base salary increases from 1.49 million VND/month to 1.6 million VND/month will not be small. Specifically:
Increase the payment of social insurance and health insurance
| Stt | Content | Increase | Legal grounds |
| first | Increase the maximum amount of compulsory social insurance contributions | Every month, employees deduct 8% of their monthly salary to participate in compulsory social insurance.If this salary is higher than 20 months’ basic salary, the monthly salary for compulsory social insurance payment is equal to 20 months’ base salary.
>> Increase from 2,384 million VND/month to 2.56 million VND/month. |
Article 5 and Clause 3 Article 6 Decision 595/QD-BHXH |
| 2 | Increase the maximum health insurance premium | The monthly salary on which health insurance premiums are based is the monthly salary on which the compulsory social insurance premium is based, in which, each month, employees pay 1.5%.>> Increase from 447,000 VND/month to 480,000 VND/month. | Article 18 Decision 595/QD-BHXH |
| 3 | Increase health insurance premiums when joining as a household | The 1st person pays 4.5% of the base salary; the 2nd, 3rd, 4th person pay 70%, 60%, 50% of the first person’s payment, respectively; from the fifth person onward, pay 40% of the contribution rate of the first person.>> The premium of the 1st person increased from 67,050 VND/month to 72,000 VND/month, so the contribution of the remaining people also increased. | Point e, Clause 1, Article 7 of Decree 146/2018/ND-CP |
| 4 | Increase eligibility for 100% of medical examination and treatment expenses of participants of health insurance for 5 consecutive years | Persons who have paid health insurance premiums for 5 consecutive years and have a co-payment of medical examination and treatment expenses in the year greater than 6 months’ basic salary shall be entitled to 100% of medical examination and treatment expenses.>> Increase the amount of co-payment from 8.94 million VND to 9.6 million VND to be paid 100% of medical examination and treatment costs. | Point dd Clause 1 Article 14 Decree 146/2018/ND-CP |
Increase the level of benefits and allowances
| Stt | Content | Increase | Legal grounds |
| first | Increase the level of allowance for convalescence and recovery after illness | The level of convalescence and health rehabilitation after being sick for one day is equal to 30% of the base salary.>> Increase from 447,000 VND/day to 480,000 VND/day. | Clause 3, Article 29 of the Law on Social Insurance 2014 |
| 2 | Increase the one-time allowance when giving birth or adopting a child under 6 months old | Female employees who give birth or adopt children under 6 months old are entitled to a one-time allowance for each child equal to two times the base salary.In case of giving birth to a child but only the father participates in social insurance, the father is entitled to a lump-sum allowance equal to 02 times the base salary in the month of birth for each child.
>> Increase from 2.98 million VND to 3.2 million VND. |
Article 38 of the Law on Social Insurance 2014 |
| 3 | Increase the level of health care, restore health after pregnancy | The level of enjoyment of the convalescence and health rehabilitation regime after one day of maternity is equal to 30% of the base salary.>> Increase from 447,000 VND/day to 480,000 VND/day. | Clause 3, Article 41 of the Law on Social Insurance 2014 |
| 4 | Increase the one-time allowance when working capacity decreases from 5 to 31% | If there is a 5% decrease in working capacity, they will be entitled to 05 times the base salary, then for every additional 1% decrease, they will be entitled to an additional 0.5 times the base salary.>> Increase from 7.45 million VND to 08 million VND if working capacity is reduced by 5%; After that, for every 1% decrease, you will receive an additional VND 800,000. | Article 46 of the Law on Social Insurance 2014 |
| 5 | Increase monthly allowance when working capacity decrease by 31% or more | If you have a 31% decrease in your working capacity, you will be entitled to 30% of the base salary, then for every additional 1% decrease, you will be entitled to an additional 2% of the base salary.>> Increase from 447,000 VND/month to 480,000 VND/month if there is a 31% decrease in working capacity, then for every 1% decrease, you will be entitled to an additional 32,000 VND. | Article 46 of the Law on Social Insurance 2014 |
| 6 | Increase the level of allowance for people with a working capacity reduction of 81% or more but suffering from spinal paralysis, blindness in both eyes, amputation, paralysis of 2 limbs or mental illness. | Employees with a working capacity reduction of 81% or more but suffering from spinal paralysis, blindness in both eyes, amputation, paralysis of 2 limbs or mental illness, in addition to the monthly allowance, they are also entitled to a service allowance equal to base salary.>> Increase from 1.49 million VND/month to 1.6 million VND/month. | Article 50 of the Law on Social Insurance 2014 |
| 7 | Increase the one-time allowance when dying due to a work accident or occupational disease | The working employee dies due to a labor accident, occupational disease or dies during the first treatment, his relatives are entitled to a one-time allowance equal to 36 times the base salary.>> Increase from 53.64 million VND to 57.6 million VND. | Article 51 Law on Social Insurance 2014 |
| 8 | Increase the level of convalescence, restore health after treatment of injury and illness | The 1-day allowance is equal to 25% of the base salary if convalescence and health rehabilitation at home.>> Increase from 372,500 VND/day to 400,000 VND/day.
The 1-day allowance is equal to 40% of the base salary if convalescing and recovering at a concentration facility. >> Increase from 596,000 VND/day to 640,000 VND/day. |
Article 52 of the Law on Social Insurance 2014 |
| 9 | Increase the lowest pension | The lowest monthly pension of employees participating in compulsory social insurance who are eligible for pension equal to the base salary.>> Increase from 1.49 million VND/month to 1.6 million VND/month. | Clause 5, Article 56 of the Law on Social Insurance 2014 |
| ten | Funeral allowance increase | Relatives are entitled to a funeral allowance equal to 10 times the base salary in the month in which the employee dies.>> Increase from 14.9 million to 16 million. | Article 66 Law on Social Insurance 2014 |
| 11 | Increase the monthly death benefit | The monthly death benefit for each eligible relative is equal to 50% of the base salary.>> Increase from 745,000 VND/month to 800,000 VND/month.
In case the relative has no person to directly take care of, the monthly survivorship allowance is equal to 70% of the base salary. >> Increase from 1,043 million VND/month to 1.12 million VND/month. |
Article 68 Law on Social Insurance 2014 |
| twelfth | Increase direct payment for health insurance card holders | – Medical examination and treatment at district-level establishments and the equivalent without a contract for medical examination and treatment covered by health insurance (except for emergency cases):+ Outpatient: Not more than 0.15 times the base salary at the time of medical examination and treatment.
>> Increase from 223,500 VND to 240,000 VND. + Inpatient: Not more than 0.5 times the base salary at the time of hospital discharge. >> Increase from 745,000 VND to 800,000 VND. – Inpatient medical examination and treatment at provincial-level establishments and the equivalent without a contract for medical examination and treatment covered by health insurance (except for emergency cases): Not more than 1.0 times the base salary at the time of discharge from the hospital. >> Increase from 1.49 million VND to 1.6 million VND. – Inpatient medical examination and treatment at central-level establishments and the equivalent without a contract for medical examination and treatment covered by health insurance (except for emergency cases): Not more than 2.5 times the base salary at the time of discharge from the hospital. . >> Increase from 3,725 million VND to 04 million VND. – Medical examination and treatment at the place of initial registration is not in accordance with regulations: + Outpatient: Not more than 0.15 times the base salary at the time of medical examination and treatment. >> Increase from 223,500 VND to 240,000 VND. + Inpatient: Not more than 0.5 times the base salary at the time of hospital discharge. >> Increase from 745,000 VND to 800,000 VND. |
Article 30 of Decree 146/2018/ND-CP |
| 13 | Increase your chances of being paid 100% of medical examination and treatment costs covered by health insurance | Participants of health insurance are paid 100% of medical examination and treatment costs if the cost for 1 medical examination and treatment is lower than 15% of the base salary.>> Costs under 240,000 VND (currently 223,500 VND) will be paid 100% of the cost. | Point d Clause 1 Article 14 Decree 146/2018/ND – CP |
