Skip to content

J&C Group – Your Trusted Partners In Laos

Insurance, Marketing, Investment, Joint-Ventures

J&C Group – Your Trusted Partners In Laos

  • Insurance
  • Marketing
  • Investment
  • Real Estate
  • About Us
  • Contact
  • Testimonials
  • Code of Conduct
  • Terms
Ceiling For Social Security Contributions Raised
Business Expat Rescources Lao Economy Rules and Law Tax 

Ceiling For Social Security Contributions Raised

30/08/201729/07/2018 J&C Admin 330 ViewsNational Social Security Fund (“NSSF”), Social Security Contributions Laos

In line with the policy to adjust the maximum ceiling of the insurable earnings under the National Social Security Fund (“NSSF”) framework at five times the minimum wage set by the Government of Lao PDR and adjusted from time to time, as of 1 January 2017 the maximum ceiling of insurable earning has been raised from 2 million Kip to 4.5 million Kip under Ministry of Labour and Social Welfare Decision No. 1740/MOLSW dated 25 April 2016 (the “Decision”).

Articles 55 and 56of the Social Security Law (No. 34/NA dated 26 July 2013) requires non-government employers to contribute 6% of an employee’s monthly salary to the NSSF, with a further 5.5% to be contributed by insured employees. In preactice, the 5.5% employee contribution should be deducted from an employee’s salary and be paid by the employer to the NSSF.

Employees of the government will have 8.5% of their monthly salary contributed to the NSSF by the government and are required to make an additional contribution of 8 percent themselves.

J&C Services Health Insurance

As a result of the new maximum ceiling of insurable earnings coming into force, the maximum monthly NSSF contribution payable on behalf of non-government employees earning 4.5 million Kip or above per month shall be capped at 6% of 4.5 million Kip – 270,000 Kip. Likewise, NSSF contributions made by insured non-government employees earning 4.5 million Kip or over per month shall be capped at 5.5% of 4.5 million Kip – 247,500 Kip.

The Decision also sets the minimum level of insurable earnings at not less than 50% of the current monthly minimum wage (900,000 Kip) where an employee’s monthly income is lower than the prescribed monthly minimum wage. As such, the current minimum level of insurable earnings on which NSSF contributions are to be made by employers on behalf of individual employees is 450,000 Kip.

As noted, the Decision is now in force, replacing the previous Decision No. 1851/MOLSW, and must be strictly implemented by all employers and employees in Lao PDR.

Benefits under the NSSF include the provision of funds for health care during child birth, workplace injuries and illnesses, old age pensions, funeral grants, surviving family benefits, and unemployment benefits.

Arion LaosThis article has been provided by Arion Legal, an Australian law firm established in Laos in 2008, offering international standard legal advice and documentation for foreign investors operating in, or looking to invest in, Laos.

Related posts:

Marketing Over Coffee With J&C, Part 2
Pay Taxes Or Face Closure, Thousands Of Businesses Warned
  • ← Deep Sky Dreaming Carries Hostess To New Horizons Via Qatar
  • 5 Reasons To Visit Laos In The Green Season →
Share This Post:

Advertising

EV rental service Laos
KrungsiVIS International SchoolToyotaADAM property MaintenanceSoda Maker J&C Group
PALShellKerberos Security

Search

Search by Categories

Archives

Search by Categories

Popular posts

  • Top 10 Lao Dishes You Must Try !
  • How do I start my own business in Laos?
  • Choosing A School In Vientiane
  • Medical Situation in Vientiane
  • Do’s & Don’t If You Have An…
  • Car & Motorbike Insurance
  • Venomous Predators: Giant Red Centipede

Find us on Facebook

Facebook

About Us


J&C Group is active in Insurance, Marketing, Investment, Real Estate and Joint-Ventures, offering employment to over 100 local & international staff members.

Useful Links

  • Forum “Expat Laos”
  • Buy & Sell in Vientiane
  • Vientiane Rescue 1623
  • Expat Luang Pra Bang
  • Rent & Let In Vientiane
  • Vientiane Safety Awareness Group
  • Vientiane Parenting
  • Pets Vientiane

Menu

  • Insurance
  • Marketing
  • Investment
  • Real Estate
  • About Us
  • Contact
  • Testimonials
  • Code of Conduct
  • Terms

Contact

  • J&C Group | Vientiane
  • Phone: 020 77 125 000
  • Email: contact@jclao.com
  • Website: www.jclao.com
Copyright © 2023 Stephan Aeschbach - J&C Group.
All rights reserved.