HCM City Social Insurance Agency

HCM City (VNA) – The HCM City Social Insurance Agency has instructed enterprises
to apply the new rates for social security, health and unemployment insurance that
will take effect on January 1, 2010.

Accordingly, the social security contribution will increase to 22 percent of the
contracted monthly salary, with the employer paying 16 percent and the employee the
remaining 6 percent. The current rates are 15 and 5 percent, respectively.

The health insurance premiums, meanwhile, will increase to 4.5 percent with the
employer paying 3 percent, up from 2 percent, and the employee paying 1.5 percent,
up from 1 percent. Unemployment insurance will be maintained at the old rate
of 2 percent, with equal contributions from both employer and employee.

Do Quang Khanh, deputy head of the HCM City Social Insurance Agency, said the rate
of insurance was based on the salary level in employment contract.

“Under the regulation, from 2010, the employer portion for social security will
increase by 2 percent every two years until it reaches 22 percent, and employee
portion will increase by 1 percent every two years until it reaches 8 percent,”
Khanh said.-Enditem