Is the maximum salary used as basic for social insurance premiums from July 1, 2025 is 20 times the reference level? What are prohibited acts concerning social insurance in Vietnam from July 1, 2025?
Is the maximum salary used as basic for social insurance premiums from July 1, 2025 is 20 times the reference level?
Recently, on June 29, 2024, the National Assembly passed the Law on Social Insurance 2024, which takes effect from July 1, 2025.
According to Article 31 of the Law on Social Insurance 2024, the basis for social insurance contributions is stipulated as follows:
Basis for social insurance contributions
1. Wages used as the basis for compulsory social insurance contributions are stipulated as follows:
...
d) The lowest wage used as the basis for compulsory social insurance contributions is equal to the reference level, and the highest is 20 times the reference level at the time of contribution.
2. The lowest income used as the basis for voluntary social insurance contributions is equal to the poverty standard in rural areas, and the highest is 20 times the reference level at the time of contribution.
3. The Government of Vietnam shall detail the provisions of point b, clause 1 of this Article; and stipulate the retroactive collection and payment of compulsory social insurance contributions.
Thus, the highest wage for compulsory social insurance contributions from July 1, 2025 is 20 times the reference level at the time of contribution.
In Article 7 of the Law on Social Insurance 2024, the reference level is defined as the amount decided by the Government of Vietnam used to calculate the contribution levels and benefit amounts of certain social insurance benefits stipulated in the Law on Social Insurance 2024.
The reference level is adjusted based on the increase in the consumer price index, economic growth, and in line with the state's budget capacity and the social insurance fund.
Additionally, clause 13 of Article 141 of the Law on Social Insurance 2024 stipulates:
Transitional provisions
...
13. Before the statutory pay rate is abolished, the reference level stipulated in this Law is equal to the statutory pay rate. At the time the statutory pay rate is abolished, the reference level must not be lower than the statutory pay rate.
...
From these regulations, officially starting from July 1, 2025, the highest wage for compulsory social insurance contributions will be 20 times the reference level at the time of contribution. If by this time the statutory pay rate has not been abolished, the reference level will be equal to the statutory pay rate.
Additionally, the highest income used as the basis for voluntary social insurance contributions will be 20 times the reference level at the time of contribution.
Is the maximum salary used as basic for social insurance premiums from July 1, 2025 is 20 times the reference level? (Internet image)
What are prohibited acts concerning social insurance in Vietnam from July 1, 2025?
According to the regulations in Article 9 of the Law on Social Insurance 2024, the following acts are strictly prohibited regarding social insurance:
- Late payment or evasion of compulsory social insurance and unemployment insurance contributions.
- Misappropriating social insurance or unemployment insurance benefits.
- Obstructing, causing difficulties, or harming the rights and legitimate interests of participants and beneficiaries of social insurance or unemployment insurance.
- Fraudulent or falsified documentation in the implementation of social insurance and unemployment insurance.
- Illegally using the social insurance fund and the unemployment insurance fund.
- Accessing, exploiting, or providing social insurance and unemployment insurance database illegally.
- Registering or reporting false information; providing inaccurate information about social insurance and unemployment insurance.
- Colluding, conniving, covering up, or aiding organizations or individuals to commit acts violating social insurance and unemployment insurance laws.
- Pledging, buying, selling, mortgaging, or depositing social insurance books in any form.
- Other acts as stipulated by law.
What policies does the state have regarding social insurance in Vietnam from July 1, 2025?
According to the regulations in Article 6 of the Law on Social Insurance 2024, the state has the following policies regarding social insurance from July 1, 2025:
- Establishing a multi-tier social insurance system that includes social pension benefits, compulsory social insurance, voluntary social insurance, and supplementary retirement insurance to aim for universal coverage according to the roadmap appropriate to economic and social development conditions.
- Ensuring the rights and legitimate interests of institutions and individuals participating in social insurance; providing credit support policies for workers who have paid social insurance contributions but become unemployed.
- The state budget ensures the implementation of policies on social pension benefits and several other policies as stipulated in this Law.
- Protecting, preserving, and growing the social insurance fund.
- Supporting participants in voluntary social insurance.
- Encouraging localities, within their economic and social conditions and budget balance capacity, and mobilizing social resources to support additional social insurance contributions for voluntary social insurance participants and additional support for social pension benefit recipients.
- Improving legislation and policies on social insurance; developing a professional, modern, transparent, and efficient social insurance implementation system; prioritizing investment in developing information technology infrastructure to meet the digital transformation requirements, electronic transactions, and social insurance management requirements.
- Encouraging participation in supplementary retirement insurance.
LawNet