Legal News

[Labor] Increase in basic salary effective July 1, 2024.

2024/06/27

On June 25, 2024, the Government submitted a proposal to the National Assembly to increase the basic salary by 30% from VND1,800,000/month to VND2,340,000/month effective July 1, 2024.

The basic salary applies to state officials and civil servants, but not to private enterprises; however, this change will raise the maximum monthly salary for calculating social and health insurance. In Vietnam, the maximum monthly salary for social insurance and health insurance may not exceed 20 times the basic salary. Therefore, effective July 1, 2024, the maximum monthly salary for the calculation of social and health insurance will be increased from VND36,000,000 to VND46,800,000.

Therefore, for workers whose monthly salary exceeds VND36,000,000, employers will be required to submit to the social insurance agency a revised document stating that the salary ceiling will be increased as the basis for calculating social and health insurance premiums from July 2024 onward.

Currently, the government is in the process of having a draft decree on the above and plans to release the official document by July 1, 2024.