Based on the employee's total monthly insurance premium rate of 10.5%, workers with a salary of 5 million will easily calculate the monthly premium.
In fact, there are still many workers who receive a salary of 5 million VND/month but do not know how to calculate the premium. They often let companies and businesses actively deduct money every month. So what is the insurance premium rate of 5-million salary? With a 5 million monthly salary, can employees not contribute to insurance? The following information of Navigos Search will provide a clear answer.
1. What is the insurance premium?
The salary on which social insurance premiums are based on is the salary used to calculate the rate of social insurance premium payment. In which, the minimum payment will be the regional minimum wage, the maximum salary for which social insurance premiums will be paid cannot be more than 20 times the base salary.
According to the provisions of Article 30 of Circular 59/2015/TT-BLĐTBXH, the monthly salary on which social insurance premiums are based on according to the salary regime set by the employer is prescribed as follows:
- From January 1, 2016 to December 31, 2017, the monthly salary on which social insurance premiums are based on is the salary and allowance prescribed in Clause 1 and Point a of Clause 2, Article 4 of Circular No. 47/2015/TT - BLĐTBXH. The salary is recorded according to the time of the job, the title according to the salary scale, and the salary table developed by the employer in accordance with the law. For employees who receive salary by product or package salary, write the salary calculated over time to determine the unit price of the product or package salary. Wage allowances to compensate for working conditions, living conditions, nature of work, level of labor attraction,... for which the salary agreed in the labor contract has not been calculated or is not fully calculated.
- From January 1, 2018 onwards, the monthly salary on which social insurance premiums are based on will be the salary and allowance specified in Clause 1 and other additional amounts as prescribed at Point a, Clause 3, Article 4 of Circular No. 47. /2015/TT-BLĐTBXH.
Thus, from January 1, 2018 onwards, the salary of the month on which social insurance premiums are based is the salary and allowance as mentioned above and the additional amounts that can be determined and the agreed salary in the labor contract that are paid regularly in each salary payment.
2. Contribution rate and method of payment of social insurance
Pursuant to Article 85, Article 86 of Law on Social Insurance 2014, Article 4 of Decree 58/2020/ND-CP, Decision 595/QD-BHXH, the social insurance premium is calculated on the basis of employee's monthly salary.
The compulsory social insurance premium shall be divided into the retirement and survivorship fund; maternity sickness; occupational accidents, occupational diseases; unemployment insurance; health insurance. The rate of social insurance premium payment in 2023 is as follows:
|
Employers
|
Employees
|
|
Social Insurance
|
Unemployment Insurance
|
Medical Insurance
|
Social Insurance
|
Unemployment Insurance
|
Medical Insurance
|
|
HT
|
ÔĐ-TS
|
TNLĐ-BNN
|
HT
|
ÔĐ – TS
|
TNLĐ-BNN
|
|
14%
|
3%
|
0.5%
|
1%
|
3%
|
8%
|
–
|
–
|
1%
|
1.5%
|
|
21.5%
|
10.5%
|
|
Total 32%
|
The responsibility to pay social insurance premiums rests with the employer. Employers can pay social insurance premiums for employees by the following methods:
- Monthly: On each month, no later than the last day of the month, the enterprise will deduct the social insurance premium from the employee's monthly salary fund to participate in social insurance at the prescribed rate, and transfer it to the employee's account at the same time with accounts of the social insurance agency as prescribed.
- Quarterly or semiannually: If an enterprise pays social insurance premiums for employees in the fields of agriculture, forestry, fishery and salt production, paying wages by product or contract, it will pay by the monthly method or every three to six months. No later than the last day of the payment method, the enterprise must fully transfer the money to the social insurance fund account.
3. What kind of insurance do you have to contribute with a monthly salary of 5 million?
The number of types of insurance that an employee must participate in will not depend on the salary received, but on the terms of the labor contract that the employee signs with the employer.
Employees working at companies and businesses will have to pay 3 types of insurance:
1. Social Insurance: Applicable to employees who sign a contract of 1 month or more, Clause 1, Article 2 of the Law on Social Insurance 2014). Monthly social insurance premium rate = 8% x Monthly salary on which social insurance premiums are based.
2. Unemployment Insurance: Applicable to employees who sign a contract of 3 months or more (Article 43 of the Employment Law 2013). Monthly unemployment insurance premium = 1% x monthly salary on which social insurance premiums are based.
3. Medical Insurance: Applies to employees who sign contracts for a full 3 months or more (Clause 1, Article 12 of the Law on Health Insurance). Monthly medical insurance premium = 1.5% x monthly salary on which social insurance premiums are based.
What kind of insurance do you have to contribute with a monthly salary of 5 million?
4. What is the insurance premium rate of the 5-million salary?
According to Decision 595/QD-BHXH in 2017, the total monthly insurance premium rate of employees will be 10.5%. Therefore, you can easily calculate the premium according to the following general formula:
Monthly insurance premium = 10.5% x Monthly salary on which social insurance premiums are based.
So, what is the insurance premium rate of the 5-million salary? Based on the above formula, an employee with a salary of 5 million will pay insurance as follows:
Insurance premium for employees with salary 5 million = 10.5% x 5 million VND = 525,000 VND/month.
This calculation is only accurate with the amount of 5 million VND/month that the employee is paid including the basic salary, allowance and fixed supplement which is included in the calculation of social insurance contributions.
For the case in which the 5 million received income includes bonuses, travel allowances, overtime work, etc., when calculating the insurance premium payable to the Social Insurance agency, it is necessary to take 5 million VND minus the expenses. At that time, the insurance premium = 10.5% x (5 million VND - The amounts not included in the insurance premium: bonuses, travel allowance, overtime...).
What is the insurance premium rate of the 5-million salary?
5. With a 5 million monthly salary, can employees not contribute to insurance?
Since you already have the answer for the insurance premium rate of the monthly 5-million salary, please continue to find out whether it is possible to not make any insurance contribution with this salary rate.
Currently, the salary of 5 million VND/month is considered quite low. If you receive a salary of 5 million, but you also have to deduct the monthly insurance payment, the amount that the employee receives is even lower. Therefore, in fact, there are still some employees who have separate agreements with enterprises about not paying insurance according to regulations.
If you possess professional capacity, solid experience in a certain job or field, you can completely increase your income. You can refer to the salary details of each industry on the market today, such as the 2023 salary report of Navigos Group. Salary report from Navigos Group - The group that owns 2 leading recruitment brands in Vietnam (VietnamWorks and Navigos Search).
Navigos Group's 2023 salary report shows detailed market salaries for each department and level in 23 different industries in Vietnam such as construction, real estate, finance - banking, information technology ,...
The secret to increase your salary
Based on the information about your salary and capacity, you should determine the right job to have the opportunity to receive a higher income. You can ask the team of consultants at Navigos Search by sending your CV or contacting us directly.
As a "Dream Maker", a recruitment expert will base on the methodical recruitment process, the candidate's ability and experience to search for suitable job positions and actively contact the candidate right when the chances come. After the candidate is accepted, the specialist continues to closely monitor and support throughout the process of "Succeeding after joining".
The recruitment process of Navigos Search is as follows:
- Step 1 → Search and filter candidates: Specialists search and screen qualified candidates that match the recruitment requirements of the enterprise.
- Step 2 → Face-to-face interview: Headhunter conducts an interview to assess the candidate's ability as well as listen to the candidate's needs and expectations.
- Step 3 → Support customer with interviews: Headhunter provides a list of potential candidates to clients after thorough evaluation. Navigos Search specialists will accompany customers and candidates to provide additional support during the interview process.
- Step 4 → Support negotiation and job offer: Navigos Search acts as a connector to help negotiate and advise on salary and benefits. After the candidate receives the invitation letter and confirms the participation, the vacancy will be closed.
- Step 5 → Follow up on recruitment: Follow up with candidates to aim for the final goal: succeeding after joining the company.
Besides, with a huge data source available including: 375,000+ candidates, 85,000+ senior management level candidates and optimal recruitment solutions, Navigos Search is also the leading digital "talent hunter" in Vietnam. We are proud to be the first choice of most businesses and corporations across Vietnam when there is a need to recruit mid-level and high-level personnel.
Navigos Search - The most prestigious middle and high-level job search site
If you are on a job search or want to be informed about positions that match your skills and ambitions, please send your CV to Navigos Search to be contacted immediately if there are any suitable vacancies available. Especially, if your business is in need of recruiting personnel, please contact Navigos Search to quickly get the most potential candidates!
Navigos Search - Vietnam's leading middle and high-level talent hunting company