NEWSLETTER JUNE 2024
Insurance
Adjustment of base salary and regional minimum salary from 1 July 2024
On 30 June 2024, the Government issued Decree No. 73/2024/ND-CP and Decree No. 74/2024/ND-CP. The contents are as follows:
– Base salary
The base salary increases by 30% from VND 1,800,000 to VND 2,340,000. Therefore, the maximum salary used as a basis for calculating payment of Social Insurance, Health Insurance, Labor accident & occupational disease insurance and Union fees (i.e. 20 times the base salary) will increase from VND 36,000,000/month to VND 46,800,000/month.
– Regional minimum wage
The regional minimum wage increases by 6% as follows:
Unit: VND/month
| Region | Regional minimum wage according to Decree No. 38/2022/ND-CP | Regional minimum wage according to Decree No. 74/2024/ND-CP | Maximum salary to calculate unemployment insurance |
| Region I | 4,680,000 | 4,960,000 | 99,200,000 |
| Region II | 4,160,000 | 4,410,000 | 88,200,000 |
| Region III | 3,640,000 | 3,860,000 | 77,200,000 |
| Region IV | 3,250,000 | 3,450,000 | 69,000,000 |
Value Added Tax (“VAT”)
VAT reduction policy
On 11 June 2024, Hung Yen Tax Department issued Official Letter No. 2363/CTHYE-TTHT on VAT reduction policy as follows:
Infrastructure management services under group 6810923 are not eligible for VAT reduction. In case a company performs infrastructure management and maintenance for customers, including both VAT-reduced and non-VAT-reduced services, if each tax rate cannot be determined, invoice must be issued with the highest tax rate for the above services, i.e 10%. A buyer can use the above invoice as a basis for deducting input VAT and requesting VAT refund (if any).