Decree No. 115/2015/ND-CP providing detailed regulations on compulsory social insurance
The Decree No. 115/2015/ND-CP (Decree) shall take effect from 01 January 2016. Following the Law on Social Insurance, this Decree has provided detailed regulations on compulsory social insurance (CSI) as follows:
The Decree has extended the applies, adding the male employee whose wife is in the gestation, the employee who works pursuant to the at least 1 month to 3 months labour contract, etc., which stipulated in Article 02 the Decree.
Regarding the CSI regime, there are 03 remarkable principles
- First and foremost, the payment of CSI drawing from the monthly wage shall be calculated not only on the monthly wage rate but also the allowances and other additional payments. Particularly, from 01 January 2016 to 31 December 2017, the allowances will be added to calculate the payment; and since 01 January 2018, the payment thereof will include the wage rate, allowances and other additional payments.
- Second, the Decree supplemented the provisions on the maternity regime and maternity leave in case of surrogacy stipulated in Section 1 Chapter II.
- The third noticeable principle is that the Decree has changed the benefit rate of one-time CSI subsidies from 1.5 months’ wage up to 02 months’ wage.
This Decree shows a great effort of the Government in protecting the labour’ legitimate rights and interests, as well as in implementing the Law on Social Insurance on the right track.
Such exemption is mentioned in item h clause 7 article 5 of the Circular 219. The Circular 193 will take effect on 10th January 2016.
. In case the allowances and other additional payments are mentioned in the Labour Contract (Article 17 the Decree)
By Vietnam Law Insight
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