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What benefits do employees enjoy when increasing the regional minimum wage?

Vice Chairman of the Vietnam General Confederation of Labor Ngo Duy Hieu said that after 2 years of no salary increase, the life and income of a part of workers are very difficult. More than ever, it is now necessary to increase wages to help workers stabilize their lives and feel secure to stick with production enterprises.

What benefits do employees enjoy when increasing the regional minimum wage?  - Photo 1.

The regional minimum wage increase is expected to apply from July 1, 2022 to December 31, 2023 (VND/month).

When the regional minimum wage increases, workers will enjoy a range of benefits. Specifically, employees will be entitled to an increase in social insurance contributions, an increase in health insurance premiums, an increase in unemployment insurance premiums and an increase in wages for stopping work.

Increase social insurance premiums

According to Article 5 of Decision 595/QD-BHXH, the monthly payment of social insurance premiums will largely depend on the monthly salary on which social insurance premiums are based. In which, Point 2.6, Clause 2, Article 6 of this Decision states:

– The monthly salary on which the compulsory social insurance premium is based is not lower than the regional minimum wage for those who do the simplest jobs or titles under normal working conditions.

– Persons doing jobs or titles that require vocational training or apprenticeship must be at least 7% higher than the regional minimum wage.

– Persons doing jobs or titles with heavy, hazardous or dangerous working conditions must be at least 5% higher. Along with that, a job or title with particularly heavy, hazardous or dangerous working conditions must be at least 7% higher than the salary of a job or title of equivalent complexity. under normal working conditions.

Therefore, an increase in the regional minimum wage will be the basis for forcing businesses that are paying social insurance premiums for employees below the regional minimum wage to increase their payment, at least equal to the regional minimum wage.

Increase health insurance premiums

Clause 1, Article 18 of Decision 595 stipulates:

– The monthly payment of health insurance (HI) is equal to 4.5% of the monthly salary. In which, the employer pays 3%; employees pay 1.5%. The monthly salary on which health insurance premiums are based is the monthly salary for which compulsory social insurance is paid.

Accordingly, the payment of health insurance premiums will increase in proportion to the increase of the monthly salary on which social insurance premiums are based.

Increase unemployment insurance premium

In Clause 2, Article 15 of Decision 595, it stipulates:

– For employees who pay unemployment insurance premiums according to the salary system decided by the employer, the monthly salary on which unemployment insurance premiums are based is the salary used as the basis for payment of compulsory social insurance.

– In case the monthly salary is higher than 20 months of regional minimum salary, the monthly salary for UI payment is equal to 20 months of regional minimum salary.

Therefore, the unemployment insurance premium will also increase when the minimum regional salary increases.

Increase salary stop working

Article 98 of the 2012 Labor Code states:

– In case of having to stop working, if it is due to the fault of the employee, that person will not be paid. In addition, other employees in the same unit who must stop working shall be paid at the rate agreed upon by the two parties but must not be lower than the regional minimum wage.

– If because of an electricity or water problem that is not due to the fault of the employer or employee or because of other objective reasons such as natural disasters, fires, dangerous epidemics, etc., the salary for work stoppage is also due to two reasons. as agreed by the parties but must not be lower than the regional minimum wage.

Thereby, if you have to stop working for one of the reasons mentioned above, the salary for stopping work will also increase.

https://cafef.vn/nguoi-lao-dong-duoc-huong-loi-ich-gi-khi-tang-luong-toi-thieu-vung-20220415101658121.chn


According to Van Minh

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