Maximum Required Social Insurance Contribution for Employees Under Current Regulations
What is Social Insurance?
According to Article 3 of the 2014 Social Insurance Law, the explanation is as follows:
Terminology Explanation
In this Law, the following terms are understood as follows:
1. Social insurance is a guarantee to replace or compensate for part of the income of employees when they reduce or lose income due to illness, maternity, work accidents, occupational diseases, reaching retirement age, or death, based on the contributions to the social insurance fund.
2. Compulsory social insurance is a type of social insurance organized by the State, in which employees and employers must participate.
3. Voluntary social insurance is a type of social insurance organized by the State, in which participants can choose the level and method of contribution suitable to their income, and the State has policies to support the social insurance contributions so that participants can enjoy pension and survivorship benefits.
Thus, social insurance is a guarantee to replace or compensate for part of the income of employees when they reduce or lose income due to illness, maternity, work accidents, occupational diseases, reaching retirement age, or death, based on contributions to the social insurance fund.
The social insurance benefits are stipulated in Article 4 of the 2014 Social Insurance Law as follows:
- Compulsory social insurance is a type of social insurance organized by the State, in which employees and employers must participate, with the following policies: illness, maternity, work accidents, occupational diseases, retirement, and survivorship.
- Voluntary social insurance is a type of social insurance organized by the State, in which participants can choose the level and method of contribution suitable to their income, with the following policies: retirement and survivorship.
- Supplementary pension insurance as regulated by the Government of Vietnam.
The highest compulsory social insurance contribution for employees under current regulations (Image from the Internet)
What is the highest compulsory social insurance contribution currently?
Based on Section 3 of Notification 2651/TB-BHXH of 2023 from Ho Chi Minh City's Social Insurance Department on social insurance contributions, health insurance, unemployment insurance, work accident insurance, and occupational disease insurance, the details are as follows:
From July 1, 2023, the highest monthly salary for compulsory social insurance contributions, work accident - occupational disease insurance, and health insurance is VND 36,000,000/month.
The highest unemployment insurance contribution is 20 times the regional minimum wage, specifically:
- Region I is VND 93,600,000/month.
- Region II is VND 83,200,000/month.
What is the voluntary social insurance contribution from July 1, 2023?
According to Section 4 of Notification 2651/TB-BHXH of 2023 from Ho Chi Minh City's Social Insurance Department, the guidelines for voluntary social insurance contributions are as follows:
The monthly income for voluntary social insurance contributions will be chosen by the participants:
- The lowest is equal to the rural poverty line standard of VND 1,500,000.
- The highest is 20 times the statutory pay rate, which is VND 36,000,000.
The support for voluntary social insurance contributions is calculated as a percentage (%) of the monthly social insurance contribution based on the rural poverty line standard for a maximum of 10 years.
Specific support levels:
- Poor households (30%): 1,500,000 x 22% x 30% = VND 99,000/month.
- Near-poor households (25%): 1,500,000 x 22% x 25% = VND 82,500/month.
- Other participants (10%): 1,500,000 x 22% x 10% = VND 33,000/month.
How are the principles of social insurance regulated?
According to Article 5 of the 2014 Social Insurance Law stipulates as follows:
Principles of Social Insurance
1. The social insurance benefits are calculated based on the contribution level, the contribution period, and shared among social insurance participants.
2. The compulsory social insurance contribution is calculated based on the monthly salary of the employee. The voluntary social insurance contribution is calculated based on the monthly income level chosen by the employee.
3. Employees who have periods of compulsory social insurance contributions and periods of voluntary social insurance contributions are entitled to pension and survivorship policies based on the contribution periods. The period of social insurance contributions used to calculate a one-time social insurance benefit is not included in the period used to determine entitlement to other social insurance benefits.
4. The social insurance fund is centrally managed, unified, transparent, and publicly; used for the right purposes, and independently accounted for in accordance with the component funds and target groups implementing the salary policies prescribed by the State and the salary policies decided by employers.
5. The implementation of social insurance must be simple, easy, convenient, ensuring prompt and full benefits for social insurance participants.
Thus, the principles of social insurance are currently implemented according to the 5 contents mentioned above.
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