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For illustration. Contracted salary and total contribution to social insurance fund. |
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According to Article 91 and Article 92 of the Law on Social Insurance (2006), from 2010, once every two years, social insurance premiums (SI) be adjusted again. If there are no changes from the time this article is written until 31/12/2013, then from 01 Jan 2014, the employee’s contribution to social insurance is 8% and that of the employer is 18%, totalling 26%, while the total health insurance (HI) premiums is still 4.5%.
As a result the total contribution to social insurance and health insurance by the employer and the employee is 30.5% from 01 Jan 2014.
In addition to that, for companies and employees participating in unemployment insurance schema, each side also contributes 1% of the contracted salary to unemployment insurance fund.
If an employee has a labour contract from one year and over but cannot participate in unemployment insurance schema (due to the company having under 10 employees), then the company is expected to pay the severance pay at the end of the contract.
A detailed table (Employer’s Salary Relevant Costs from 1 Jan 2014) can be download from this link.
DTK Consulting, 20/11/2013
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