LAW ON SOCIAL INSURANCE: HEALTH INSURANCE; UNEMPLOYMENT INSURANCE

Article 91: Employees’ rate and form of payment are:

1. Every month, employees were defined in points a, b, c and d, clause 1, article 2 of this law shall pay 5% of the salaries, wages to retirement and death, from 2010 onwards, every two years paying by 1% until reaching the rate of 8%

Thus: in 2009, the employees paid social insurance with a total of 5%.

For example, CESR’s staff have signed the labor contracts with 1.000.000VND of salary level, in 2009 they piad social insurance are 1.000.000VND x 5% = 50,000 vnd.

In early 2010, the employees paid by more 1% so the total cost of employess’ social insurance was 6% and every two years, it will be increased by 1%. Thus, in 2012, the employees must pay 7%, and in 2014, total cost is 8% ... and so on until the total additional pay is 8%.

Eg: CESR’s staff signed the labor contracts with 1.000.000VND of salary level, in 2010 they must pay 1.000.000VND x 6% = 60.000VND, in 2012 they must pay 1.000.000VND x 7% = 70.000VND

Article 92:  

Employers’ level and form of payment are:

1. Every month, employers pay based on the fund of salaries, wages of employess’ social insurance was defined in points a, b, c and d, clause 1, article 2 of this law are as following:

a) 3% to fund of sickness and maternity; in which the employer retains 2% of timely payment to employees so that they have enough conditions to enjoy the  regulations in section 1 and section 2 of chapter III of this law and perform the quarterly balance sheeet with the organization of social insurance

b) 1% to fund of occupational accidents and diseases

c) 11% to fun of retirement and death, from 2010 onwards, every two years the employer must pay more 1% until reaching the rate of 14% (extracted from the social insurance law)

So: in 2009, the employers pay social insurance with a total of 15%

For example, CESR’s staff have signed labor contracts with 1.000.000VND of salary level,  in 2009, the employer paid the social insurance: 1.000.000VND x 15% = 150,000 VND.
In early 2010, the employers paid by more 1% so the total cost of employers’ social insurance was 16% and every two years, it will be increased by 1%. Thus, in 2012, the employers must pay 17%, and in 2014, total cost will be 18% ... and so on until the total additional pay is 14%.

160.000VND + = 220.000VND 60.000VND

For example, CESR’s staff have signed the labor contracts with1.000.000VND of salary level, in 2010, the employers must pay: 1.000.000VND x 16% = 160.000VND, in 2012
they must pay: 1.000.000VND x 17% = 170.000VND

So according to clause 1 of Article 91 and clause 2 of Article 92, the total social insurance of employers and employees for 2010 are:

Employers pay 16% + Employees pay 6% = 22% of total social insurance
160.000VNĐ     +            60.000VNĐ            =          220.000VNĐ

Health insurance:

Article 3. Premiums, the supporting level of paying health insurance according to Article 13 of the Law on health insurance and of the subjects specified in Article 1 of this Decree.

1. From July 1, 2009 to December 31, 2009, monthly premium of the objects are as following:

a. 3% of monthly salary or wages of employees for those defined in Clause 1 and Clause 2 of Article 12 of the Law on Health Insurance;

2. On Jan 01, 2010, the monthly premiums of the objects are as following:

a. 4.5% of the monthly salary or wages of employees for those defined in Clause 1 and Clause 2 of Article 12 of Law on Health Insurance

In which employees contribute 1 / 3 that is 45.000VND x 1 / 3 = 15.000VND

In which employers pay 2 / 3 ie 45.000VND * 2 / 3 = 30.000VND

For 2010, the Government has made a new decree No. 62/2009/ND-CP dated 27 May 07 2009.
According to point a, clause 1, article 13 of the Health Insurance Law, the health insurance premium, the employer shall pay 2 / 3 and employees contribute 1 / 3. Thus: on Jan 1, 2010, the total health insurance premium is: 1.000.000VND x 4.5% = 45,000 VND.

In which employers pay 2 / 3, that is 45.000VND * 2 / 3 = 30.000VND

In which employees contribute 1 / 3, that is 45.000VND x 1 / 3 = 15.000VND

Unemployment insurance:

Based on the Article 81, 81, 82 of Social Insurance Law, based on Decree 127/2008/ND-CP dated 12 MAY 12, 2008

Based on the Circular 04 / 2009/TT-BLDTBXH , the Unemployment Insurance premiums (UI) were paid as following: based on Article 102 of social insurance law and article 25 of Decree 127/2008/ND-CP, the premiums are:

           
- Employees pay 1% of monthly salary or wages for unemployment insurance;

- The employer shall pay 1% of the fun of  salary and wages for employees who participate in unemployment insurance;

- Every month, the State will support from budget by 1% of the wage fund, wage insurance for unemployed workers who participate in unemployment insurance

- Profits of fund's investment activities;

- The other legal source of income.

Based on Section I, Clause 1, the circular 04/2009/TT-BLDTBXH, the monthly unemployment benefits by 60% of the average wage, wage premiums for unemployed of six months proceeding before the employees are unemployment or termination of labor contracts in accordance with labor law or terminating the labor contract in accordance with law officials and civil servants

In case of final months before being unemployment, the emlployees have interrupting time to pay unemployment insurance because they are not eligible for paying unemployment insurance according to the law. Thus, the preceding six months of  calculating the unemployment rate is that the average of six months of unemployment insurance before the employees lose their jobs or terminate labor contracts according to labor laws or terminating the labor contract in accordance with law officials and civil servants

Translated by Thuy Hang