Social Insurance Price Slippage Coefficient: What is it? When do Social Insurance Participants Receive Social Insurance Price Slippage Payments?
What is the Social Insurance Adjustment Ratio? How is the Adjustment Ratio Table for 2023?
The social insurance adjustment ratio is another term for the adjustment of salaries and incomes on which social insurance has been paid. It can be understood as the ratio that helps create a balance in the monetary value at present compared to the previous time.
The adjustment ratio compensates for the devaluation of money. Therefore, to ensure benefits for social insurance participants and reduce the negative impact of inflation leading to monetary depreciation, the salary and income on which social insurance is paid will be multiplied by the social insurance adjustment ratio.
The formula for calculating the social insurance adjustment ratio is stipulated in Article 10 of Decree 115/2015/ND-CP on adjusting salaries on which social insurance has been paid and Article 4 of Decree 134/2015/ND-CP which stipulates the average monthly income on which social insurance is paid as follows:
(1) For compulsory social insurance:
Where:
- t is any year within the adjustment period.
- The adjusted salary on which social insurance was paid in year t is rounded to two decimal places, and the minimum level is one.
(2) For voluntary social insurance:
Where:
- t is any year within the adjustment period.
- The adjusted salary on which social insurance was paid in year t is rounded to two decimal places, and the minimum level is one.
Regarding the adjustment ratio table for 2023:
On January 3, 2023, the Ministry of Labor, War Invalids and Social Affairs issued Circular 01/2023/TT-BLDTBXH regulating the adjustment rates of monthly salaries and incomes on which social insurance is paid.
Although this Circular only takes effect on February 20, 2023, the adjustment rate regulations have been applied since January 1, 2023.
From January 1, 2023, the social insurance adjustment ratios will be applied according to the following tables:
For monthly salaries on which social insurance has been paid, adjusted in Article 2 of Circular 01/2023/TT-BLDTBXH as follows:
- The formula for calculating the monthly salary on which social insurance has been paid for the entities specified in Clause 1, Article 1 of this Circular:
Adjusted monthly salary on which social insurance (SI) was paid for each year = Total monthly salary on which SI was paid for each year x Adjusted rate of salary on which SI was paid for the corresponding year.
Where the adjusted rate of salary on which social insurance was paid for the corresponding year is implemented according to Table 1 below:
For monthly incomes on which social insurance has been paid for the entities specified in Clause 2, Article 1 of this Circular, it is adjusted according to the formula in Article 3 of Circular 01/2023/TT-BLDTBXH as follows:
Adjusted monthly income on which voluntary social insurance (VSI) was paid for each year = Total monthly income on which VSI was paid for each year x Adjusted rate of income on which VSI was paid for the corresponding year.
Where the adjusted rate of monthly income on which social insurance was paid for the corresponding year is implemented according to Table 2 below:
What is the social insurance adjustment ratio? When do social insurance participants receive adjusted social insurance money?
When do workers receive a one-time social insurance adjustment?
Currently, social insurance laws do not stipulate a specific time for receiving the adjustment money.
However, according to the formula for calculating one-time social insurance as stipulated in Article 19 of Circular 59/2015/TT-BLDTBXH, the adjustment money is included in the one-time social insurance amount.
According to the regulations in Article 10 of Decree 115/2015/ND-CP and Article 4 of Decree 134/2015/ND-CP, the Ministry of Labor, War Invalids, and Social Affairs will annually publish a new adjustment rate for salaries on which social insurance has been paid, calculated based on the annual average consumer price index.
This means that the adjustment ratio is usually announced at the end of the previous year but the new adjustment ratio's effective date is afterwards. Therefore, when the document announcing the new adjustment ratio has not yet taken effect, participants who submit documents to claim one-time social insurance during the period when the Circular regulating the new adjustment ratio has not yet taken effect will temporarily not be calculated for the adjustment money.
Thus, the timing of receiving the social insurance adjustment money will occur in two scenarios:
(1) If the social insurance participant wants to receive the social insurance money at the beginning of the year before the adjustment ratio is announced, the adjustment money will be received as a supplement after the Social Insurance Agency receives the guidance document applying the adjustment ratio.
(2) If the adjustment ratio has been announced, the adjustment money is paid along with the one-time social insurance money.
How to receive the adjustment money?
Step 1: Prepare documents
After the social insurance adjustment ratio for 2023 is announced, the person entitled to social insurance can contact the one-stop service department of the district/province Social Insurance Agency where they reside to inquire about the adjustment money.
Workers prepare a complete set of documents requesting one-time social insurance payment according to Article 109 of the Social Insurance Law 2014, including:
- Social insurance book.
- Application form for receiving one-time social insurance from the worker.
- For those moving abroad to settle, an additional copy of the competent authority’s certification of renunciation of Vietnamese nationality or a certified or notarized Vietnamese translation of one of the following documents:
- Passport issued by a foreign country;
- Visa issued by a competent foreign authority confirming entry approval for settlement abroad;
- Documentation confirming that you are processing procedures for foreign nationality; documents confirming or a residence card valid for five years or more issued by a competent foreign authority.
- Extract of the medical record in cases specified at Point c Clause 1 Article 60 and Point c Clause 1 Article 77 of this Law.
- For employees specified in Article 65 and Clause 5 Article 77 of this Law, the application for a one-time allowance is implemented according to Clauses 2 and 3 of this Article.
Step 2: Submit documents
- Submission methods:
+ Via electronic transactions: Workers register to receive an authentication code and send electronic documents to the Vietnam Social Security Portal or through an I-VAN organization (if registered for I-VAN service);
+ If not transferring paper documents to electronic format, send all paper documents to the Social Insurance Agency through public postal services;
+ Via public postal services;
+ Directly at the Social Insurance Agency.
The Social Insurance Agency receives the dossier and handles it according to regulations.
Step 3: Receive the result of the resolution.
Resolution time: Maximum 5 working days from the date the Social Insurance Agency receives the complete dossier as prescribed.
Workers receive the resolution, including:
- Related paper documents: by the registered method (Directly at the Social Insurance Agency or through public postal services or via electronic transactions);
- Allowance money:
+ Directly at the Social Insurance Agency or through public postal services or through a personal account;
+ In case of authorization to another person for collection, follow the procedure "authorization to collect Social Insurance policies, unemployment benefits" or an original Power of Attorney according to the law.
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