Highlighted changes on Unemployment insurance contribution from 01/01/2015 & Tax Calendar for 2015
According to Law on Employment No. 38/2013/QH13 passed by the National Assembly on 16th November 2013, as from 1 January 2015, there are some changes on unemployment insurance (UI) scheme which will also be applicable to entities employing any local staff under a labor contract from 3 months and over. Previously, it is only applicable to entities having from 10 staffs and over under a labor contract with duration from 12 months and over.
The salary for UI contribution is still the salary used for Social Insurance (SI) calculation, however capped at 20 times of regional minimum salary (note that the regional minimum salary is way higher than the common minimum salary as the basis for previous cap). Although we find this rule still unclear which should be further guided by a Decree and Circular, the guideline from the SI Department in Hanoi and Hochiminh City so far is that the new cap of VND 62 million would be applied from January 2015 for UI contribution. Of note, we suggest you seek detailed guidance from the direct officer in-charge on this matter.
The contribution rate remains unchanged: the total SHUI rate is 22% for employer (18% for SI, 3% for HI & 1% for UI) and 10.5% for employee (8% for SI, 1.5% for HI and 1% for UI). The maximum salary for SI and HI contribution is still 23mil VND.
In addition, according to the new Decree 105/2014/ND-CP dated 15 November 2014 on Health Insurance (HI):
- For female employees during maternity leave: The monthly contribution rate shall equal 4.5% of monthly salary that they receive before taking maternity leave. Such contribution shall be made by the Social Insurance Department.
- For employees entitled to paid sick leave for the period of more than 14 days off: They shall be exempted from HI contribution but still eligible for HI benefits.
For other changes under the new Law on Social Insurance (applicable from 1/1/2016), we will update in the upcoming Tax & Legal Newsletter.
Please also download the file below for Vietnam Tax Calendar 2015