Schedule for payment of monthly pension and social insurance benefits in November 2024 in Vietnam

Schedule for payment of monthly pension and social insurance benefits in November 2024 in Vietnam

According to Clause 4, Article 7 of the Process for Resolving Social Insurance Policies, Issuing Social Insurance, and Unemployment Insurance Policies attached to Decision 166/QD-BHXH 2019, the schedule for payment of monthly social insurance benefits is stipulated as follows:

Resolution and Payment

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4. Monthly payment of Social Insurance policies

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4.1.4. Organize the monthly payment of retirement pensions and Social Insurance benefits to beneficiaries through the Postal System under the signed contract.

a) Payment at delivery points: From the 2nd to the 10th of the month, organize payments for at least 6 hours/day at all payment points; only conclude payments before the 10th at points where all listed beneficiaries have been served according to the list provided by the Social Insurance agency.

b) Payment at district post office transaction points: From the 11th of the month, continue payments at post office transaction points until the end of the 25th of the month.

4.1.5. Prepare List C75-HD and detailed tracking book for recovery of each subject managed by the Social Insurance of the province and summarize the recovery list of the entire province as regulated.

4.1.6. Settle payment costs to the provincial post office after receiving the financial invoice.

4.1.7. Based on Notification C12-TS to track receipts and disbursements of Health Insurance contributions according to the classification.

4.1.8. Monthly, prepare a consolidated report on Social Insurance policy payouts according to Form No. 4-CBH managed and aggregated by the Social Insurance of the province as regulated.

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Thus, the schedule for receiving retirement pensions and Social Insurance benefits in November 2024 begins from November 2 to November 25, 2024.

From November 2 to November 11, 2024, payments will be organized at all payment points and from November 11 until the end of November 25, 2024, payments continue at points that are transaction points of the district post office.

Schedule for payment of monthly pension and social insurance benefits in November 2024 in Vietnam (Image from the Internet)

Is retirement pension subject to personal income tax in Vietnam?

Based on the provisions of Article 4 of the Personal Income Tax Law 2007 (amended by Clause 2, Article 1 of the Amended Personal Income Tax Law 2012 and supplemented by Clause 3, Article 2 of the Amended Tax Laws 2014), income exempt from tax includes:

Income Exempt from Tax

10. Retirement pensions paid by the Social Insurance Fund; monthly retirement pensions paid by voluntary pension funds.”

Thus, retirement pensions are considered tax-exempt income from Personal Income Tax. However, if a retired individual continues to work and earns income from wages or salaries from jobs, they are still required to pay Personal Income Tax.

Are social insurance contributions deductible in Vietnam?

According to Clause 1, Article 21 of the Personal Income Tax Law 2007 (as amended and supplemented by Clause 5, Article 1 of the Amended Personal Income Tax Law 2012), there is a provision on taxable income as follows:

Taxable income from business, wages, and salary is the total taxable income stipulated in Articles 10 and 11 of this Law, minus the contributions for social insurance, health insurance, unemployment insurance, professional liability insurance for certain sectors, voluntary pension funds, and deductions stipulated in Articles 19 and 20 of this Law.

Simultaneously, Point b, Clause 1, Article 7 of Circular 111/2013/TT-BTC stipulates that contributions to insurance, voluntary pension funds are deductible when calculating tax.

Tax Base for Taxable Income from Business, Wages, and Salaries

1. Taxable income is determined by taxable income as guided in Article 8 of this Circular minus (-) the following deductions:

b) Contributions to insurance, voluntary pension funds as guided in Clause 2, Article 9 of this Circular.

Therefore, under the above regulations, social insurance contributions are among the deductible items when calculating personal income tax.