What is the maximum monthly salary on which compulsory social insurance premiums are based? Are employees in Vietnam entitled to use their entire salary as the basis?
- Vietnam: What is the maximum monthly salary on which compulsory social insurance premiums are based?
- What are the regulations on the compulsory social insurance premiums for employees in Vietnam in 2023?
- Vietnam: What amounts do monthly salary on which compulsory social insurance premiums are based include?
Vietnam: What is the maximum monthly salary on which compulsory social insurance premiums are based?
Pursuant to the provisions of Article 89 of the Law on Social Insurance 2014, there are regulations on social insurance payment rates as follows:
Monthly salary on which compulsory social insurance premiums are based
1. For employees subject to the State-prescribed salary benefits, their monthly salary on which social insurance premiums are based is their rank- or grade-based salary plus position-based, extra-rank working seniority-based or occupation-based seniority allowance (if any).
For employees defined at Point i, Clause 1, Article 2 of this Law, their monthly salary on which social insurance premiums are based is the statutory pay rate.
2. For employees who pay social insurance premiums according to the employer-decided salary benefits, their monthly salary on which social insurance premiums are based is their salary plus salary-based allowance as prescribed in the labor law.
Since January 1, 2018, the monthly salary on which social insurance premiums are based will be the salary plus salary-based allowance and other amounts as prescribed in the labor law.
3. In case the monthly salary specified in Clause 1 or 2 of this Article exceeds 20 times the statutory pay rate, the monthly salary on which social insurance premiums are based must equal 20 times the statutory pay rate.
4. The Government shall stipulate in detail the retrospective collection and payment of monthly salaries on which compulsory social insurance premium are based for employees and employers, except the case specified in Clause 3, Article 122 of this Law.
According to the above regulations, the maximum monthly salary paid for social insurance is equal to 20 times the base salary.
However, Article 58 of the Law on employment 2013 stipulates the salary for unemployment insurance as follows:
Wages on which unemployment insurance premiums are based
1. For workers who receive wages under the State-prescribed regime, the monthly wage on which unemployment insurance premiums are based is the monthly wage on which compulsory social insurance premiums are based under the Law on Social Insurance. In case the monthly wage on which unemployment insurance premiums are based is higher than the twenty months’ region-based basic wage, the monthly wage on which unemployment insurance premiums will be equal to the twenty months’ region-based basic wage at the time of payment of unemployment insurance premiums.
2. For workers paying unemployment insurance premiums under the wage regime decided by employers, the monthly wage on which unemployment insurance premiums are based is the monthly wage on which compulsory social insurance premiums are based under the Law on Social Insurance. In case the monthly wage on which unemployment insurance premiums are based is higher than the twenty months’ region-based minimum wage, the monthly wage on which unemployment insurance premiums are based will be equal to the twenty months’ region-based minimum wage as prescribed by the Labor Code at the time of payment of unemployment insurance premiums.
Thus, the maximum salary for unemployment insurance is implemented according to the above regulations.
What is the maximum monthly salary on which compulsory social insurance premiums are based? Are employees in Vietnam entitled to use their entire salary as the basis? (Image from the Internet)
What are the regulations on the compulsory social insurance premiums for employees in Vietnam in 2023?
According to Article 85 of the Law on Social Insurance 2014 and Clause 1, Article 5, Procedure issued together with Decision 595/QD-BHXH in 2017: social insurance payment is 8%
According to Article 18 of the Procedure issued with Decision 595/QD-BHXH in 2017: health insurance premium of 1.5%
In addition to deducting money to pay social insurance and health insurance, employees also have to deduct 1% monthly to pay unemployment insurance according to the provisions of Article 14 of the Procedure issued with Decision 595/QD-BHXH in 2017.
In total, every month, employees must deduct 10.5% of their monthly salary to pay for insurance.
Vietnam: What amounts do monthly salary on which compulsory social insurance premiums are based include?
Pursuant to Clause 2, Article 17 of Decree 115/2015/ND-CP has the following provisions:
Monthly salary as the basis for compulsory social insurance payment
For each employee who pays social insurance premiums according to the salary regime by the employer, his monthly salary as the basis for social insurance payment prescribed in Clause 2 Article 89 of the Law on Social insurance shall be determined as follows:
...
2. From January 1, 2016 to December 31, 2017, the monthly salary as the basis for social insurance payment will be the salary plus salary-based benefit mentioned in the labor contract as prescribed in the labor law.
...
In particular, salary allowances calculated for social insurance payment have been specifically listed in Clause 2, Article 30 of Circular 59/2015/TT-BLDTBXH, amended by Clause 26, Article 1 of Circular 06/2021/TT-BLDTBXH; Other additional amounts are specified in Point c, Clause 5, Article 3 of Circular 10/2020/TT-BLDTBXH.
Thus, social insurance salary includes the following amounts:
- Salary according to job or title.
- Salary allowances as agreed by both parties are as follows: Salary allowances to compensate for factors such as working conditions, complexity of work, living conditions, level of labor attraction and salary Agreements in the labor contract have not been taken into account or are not fully accounted for.
- Additional payments determine a specific amount of money along with the salary agreed upon in the labor contract and are paid regularly in each pay period.
LawNet
