I am currently working as a laborer and have just signed an employment contract, contributing to social insurance for 2 months. In my company, the social insurance for employees is 13.5%, not 10.5%. The company explains that it includes accident insurance and Trade Union funds. I would like to ask, is this correct, and what benefits do employees get, is it in accordance with labor laws?
According to Decision 959/QD-BHXH, the specific social insurance contribution rate is as follows:
The social insurance contribution rate is 26%, including 8% from the employee and 18% from the employer. The employer's 18% includes: 3% for illness, maternity fund; 1% for occupational accidents, occupational diseases fund; 14% for retirement and death fund.
The health insurance contribution rate is 4.5%, including 1.5% from the employee and 3% from the employer.
The unemployment insurance contribution rate is 2%, including 1% from the employee and 1% from the employer.
Therefore, the total amount each employee has to contribute when participating in compulsory social insurance is 10.5%. The employer's responsibility is 22%, and no additional costs are incurred. The Trade Union fund is 2%, paid by the company. If employees voluntarily register to join and participate in the Trade Union, they will pay an additional 1% union fee.
Thus, the company's requirement to deduct 13.5% of the salary is incorrect. You should request the company to list each contribution item for employees and cross-check with the regulations to determine whether the company is deducting the employee's salary correctly or not.
Sickness
Work Injury and Occupational Disease
Survivor’s
Old-age
Maternity
Unemployment
Medical (Health Insurance)
Certificate of coverage
VSS - ISSA Guidelines on Social Security
