Highlights of the salary reform for non-state enterprises

From 1 July 2024, in accordance with Decree No. 73/2024/ND-CP regulating the base salary and bonus regime for officials, civil servants, public employees and the force armed, the monthly base salary for     mentioned subjects will be officially increased from VND 1,800,000 to VND 2,340,000 (“base salary”).

       

Those receiving salary and allowances (if any) based on the statutory pay rate will also be entitled to an increase in salary. In line with applicable laws, the maximum monthly salary that is subject to Social Insurance and Health Insurance contributions is capped at 20 times the monthly base salary. Subsequently, the maximum salary that is subject to compulsory Social Insurance and Health Insurance contributions will be increased to VND 46,800,000.

       

In addition, according to Decree No. 74/2024/ND-CP stipulating the minimum wage for employees working under labor contracts, also being effective as of 1 July 2024, the Vietnam Government has adjusted the regional minimum wages by the approximate average increase of 6 %. Particularly, new regional minimum wages are 

      

As the minimum salary level for compulsory social insurance contribution is the statutory regional minimum wages, the contribution will also be increased. Furthermore, as the cap level for unemployment insurance premiums is 20 times of the statutory regional minimum wages, the increase of the statutory regional minimum wages might result in an increase accordingly.