From July 1, 2018, the maximum pay rate subject to compulsory Social Insurance contribution will rise
The maximum rate of an employee ’s monthly pay subject to the compulsory Social Insurance contribution will rise by 6.923% from July 1, 2018. The adjustment is made to ensure conformance to provisions laid down in Clause 2 Article 3 of the Decree No. 72/2018/ND-CP and Clause 3 Article 89 of the 2014 Law on Social Security. This means that, from July 1, 2018, the maximum rate of monthly pay subject to the compulsory Social Insurance contribution will be VND 27,800,000 (20 times as much as the newly-adopted base pay rate). Meanwhile, the current maximum rate of monthly pay subject to the compulsory Social Insurance contribution is VND 26,000,000 (20 times as much as the current base pay rate). Accordingly, the maximum amount subject to the compulsory SI contribution that an employee has to pay will be calculated according to the following formula: 1,390,000 x 20 x 8% = VND 2,224,000/month. For more details, please find and read the article titled...
