Deloitte Vietnam - Alert On Increasing of Common Minimum Salary From 1 July 2023

Issue XX
November 2022
TAX ALERT
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Increasing common minimum salary from 1 July 2023
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Page XX Page XX Page XX Page XX
May 2023
Increasing minimum salary from 1 July 2023
Increasing common minimum salary from 1 July 2023

On 14 May 2023, the Government issued Decree No. 24/2023/ND-CP (“Decree 24”) regulated
minimum salary for civil servants, public employees and armed forces.
According to the Decree 24, the common minimum salary is increased 21% from VND
1,490,000/month to VND 1,800,000/month. Decree 24 takes effect from 1 July 2023. This is the
first time increase after 4 years since Covid-19 pandemic. The current rate of VND
1,490,000/month has been applied from 1 July 2019 according to Decree 38/2019/ND-CP.
Under current regulations, monthly base income for compulsory Social Insurance (“SI”) and
Health Insurance (“HI”) contribution is capped at 20 times of common minimum salary, therefore
this change in the common minimum salary will lead to increase in income base for SI & HI
contribution accordingly, with details as follows:
Unit: VND
Type of compulsory Monthly base income for SI & HI contribution
insurance
Before 01/07/2023 From 01/07/2023 onwards
SI & HI 29,800,000 36,000,000
(20*1,490,000) (20*1,800,000)
The current income cap applied to Unemployment Insurance (“UI”) has not been changed,
currently at 20 times of the regional minimum salary in accordance with Decree 38/2022/ND-
CP which took effect from 1 July 2022.
Our recommendations
Enterprises are suggested to review the computation of SI & HI contributions for employees
affected by Decree 24 (those with monthly income from VND 29,800,000) to ensure
compliance with regulations.
Contact us
Website: deloitte.com/vn
Email: [email protected]
Bản tin nhanh cho mục đích tham khảo chuyên

môn, không phát hành hoặc bán trên thị trường
Contact Us
Thomas McClelland Bui Ngoc Tuan Bui Tuan Minh

National Tax Leader Tax Partner Tax Partner
+84 28 7101 4333 +84 24 7105 0021 +84 24 7105 0022
[email protected] [email protected] [email protected]
Hanoi Office
15th Floor, Vinaconex
Phan Vu Hoang Dinh Mai Hanh Tat Hong Quan Building,
Tax Partner Tax Partner Tax Partner 34 Lang Ha Street, Dong Da
+84 28 7101 4345 +84 24 7105 0050 +84 28 7101 4341 District, Hanoi, Vietnam
[email protected] [email protected] [email protected] Tel: +84 24 7105 0000
Fax: +84 24 6288 5678
Ho Chi Minh City Office

18th Floor, Times Square
Building,
57-69F Dong Khoi Street,
Vo Hiep Van An Vu Thu Nga Bob Fletcher District 1, Ho Chi Minh City,
Tax Partner Tax Partner Director, Trade and Customs Vietnam
+84 28 7101 4444 +84 24 7105 0023 +84 28 7101 4398 Tel: +84 28 7101 4555
[email protected] [email protected] [email protected] Fax: +84 28 3910 0750
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© 2022 Deloitte Vietnam Tax Advisory Company Limited
© 2023 Deloitte Vietnam Tax Advisory Company Limited

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Issue XX

Page XX Page XX Page XX Page XX

Increasing common minimum salary from 1 July 2023

Bản tin nhanh cho mục đích tham khảo chuyên

Thomas McClelland Bui Ngoc Tuan Bui Tuan Minh

Ho Chi Minh City Office

About Deloitte Vietnam

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