To: Employers in Ho Chi Minh City

Pursuant to Decree No. 115/2015/ND-CP dated 11/11/2015 by the Government detailing a number of articles of the Law on Social insurance regarding compulsory social insurance; Decree No. 122/2015/ND-CP dated 14/11/2015 by the Government providing for region-based minimum wages for employees working for companies, cooperative unions, cooperatives, cooperative groups, farms, households, individuals and organizations hiring employees under labor contracts. Social Security Office of Ho Chi Minh Company provides guidance on payment of social insurance, health insurance and accident insurance as follows:

I. Monthly wages for calculating compulsory social insurance:

1. From 01/01/2016, monthly wage for calculating compulsory social insurance applicable to employees paying social insurance premium under the wage scheme decided by their employers shall include the wage level and allowances specified in their labor contracts according to regulations on labor (Points a and b Clause 1 Article 3 of Circular No. 23/2015/TT-BLDTBXH dated 23/6/2015 by the Ministry of Labor, War Invalids and Social Affairs).

2. Monthly wage for calculating social insurance premium applicable to wage-receiving managers of enterprises and wage-receiving directors of cooperatives, excluding managers in wholly state-owned single-member limited liability companies, is the wage decided by the employers.

II. Region-based minimum wages:

1. From 01/01/2016, every employer shall recheck and adjust the minimum wages on their payrolls and pay tables that has been sent to a labor authority for adjustment so that that the adjusted minimum wages are not lower that the new minimum wages provided below. On that basis, the wage levels written on the labor contracts which is the basis for calculating social insurance, health insurance and accident insurance premiums for specific employees shall be adjusted according to the established payrolls; the new region-based minimum wages  are specified below:

- VND 3,500,000 per month, applicable to units and enterprises located in Cu Chi, Hoc Mon, Binh Chanh and Nha Be district.

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If the employee signs a labor contract with a company whose office or headquarters is located in Ho Chi Minh City and works in another region, then the region-based minimum wages of the region in which he/she works written on the contract shall be applied when adjusting the wages on the contract, which is the basis for paying and getting social insurance, health insurance and accident insurance.

2. Notes:

Region-based minimum wages are only applicable to labor contract and calculation of social insurance, health insurance and accident insurance premiums for employees carrying out the simplest tasks under normal conditions in normal working period.

Regarding employees having received vocational training (whether provided by the employer or done themselves) and given works that require completion of vocation training, the wages written on the labor contract must be at least 7% higher than the region-based minimum wages; with respect to arduous, toxic and hazardous works, such amount must be  increased by 5%.

3. Not later than 20/02/2016, employers must submit the documents about adjustment of wage for calculating social insurance, health insurance and accident insurance premiums for employees. If the document is submitted after such deadline, interest on the arrears shall be charged. If an employer fails to adjust the region-based minimum wages as prescribed above and as the result, the wages of its employees are lower than the new region-based minimum wages, the social insurance agency shall temporarily increase the wages for calculating social insurance, health insurance, accident insurance premiums to the new region-based minimum wages.

Difficulties that arise during the implementation of this Circular should be reported to the Social Security Office of Ho Chi Minh City (the Receipt Division) for consideration./.

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Công văn 3844/BHXH-THU năm 2015 hướng dẫn thực hiện đóng bảo hiểm xã hội, bảo hiểm y tế, bảo hiểm thất nghiệp từ ngày 01/01/2016 do Bảo hiểm xã hội thành phố Chí Minh ban hành