In this June 2018 publication on Tax and Accounting updates in Vietnam, where cover adjustments to insurance calculations for payrolls effective 1 July 2018, and we look at a selection of recent Official Letters released by Tax and related authorities.
INCREASE TO MINIMUM BASIC WAGE FROM 1 JULY 2018, AND IMPACT ON SALARY (INSURANCE) PAYMENTS
Changes come into force from 1 July 2018 to the Minimum Basic Wage in Vietnam, affecting the calculation of Vietnamese Social Insurance payments, following adoption of Decree 72/2018/ND-CP by the National Assembly.
Specifically, the changes have resulted in an increase to the maximum caps for calculating Social Insurance and Health Insurance payments, and therefore increasing the potential payments by employees and employers for these insurances.
All employers should ensure their payroll software and internal calculations are updated for all pay runs after 1 July 2018.
For more information, click Vietnam Tax Update June 2018 – Domicile
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