What are the changes in the maximum salary used as bases for calculation of social insurance premiums from July 1, 2024, after adjusting the statutory pay rate in Vietnam?
What are the changes in the maximum salary used as bases for calculation of social insurance premiums from July 1, 2024, after adjusting the statutory pay rate in Vietnam?
Pursuant to Article 89 of the Social Insurance Law 2014, the monthly salary used as bases for calculation of compulsory social insurance premiums in Vietnam is stipulated as follows:
- Employees who are subject to wage policies stipulated by the State will have their monthly social insurance premiums based on their wage grades, levels, ranks, including position allowances, seniority allowances beyond the cap, and professional seniority allowances (if any).
Non-specialized employees at commune, ward, and commune-level towns will have their social insurance contribution wage based on the statutory pay rate.
- For employees whose wages are decided by the employer, the monthly social insurance contribution is based on the wage and wage allowances as per the labor laws.
From January 1, 2018, onward, the monthly social insurance contribution is based on the wage, wage allowances, and other supplementary amounts as required by labor laws.
- If the monthly salary, as provided for in Clauses 1 and 2 of Article 89 of the Social Insurance Law 2014, exceeds 20 times the statutory pay rate, then the social insurance contribution monthly salary will be 20 times the statutory pay rate.
Thus, the maximum monthly salary used as bases for calculation of compulsory social insurance premiums will be 20 times the statutory pay rate.
Moreover, based on Clause 2 of Article 3 of Decree 73/2024/ND-CP, the statutory pay rate from July 1, 2024, is VND 2,340,000/month.
Therefore, the maximum monthly salary used as bases for calculation of compulsory social insurance premiums from July 1, 2024, is VND 46,800,000/month.
What are the changes in the maximum salary used as bases for calculation of social insurance premiums from July 1, 2024, after adjusting the statutory pay rate in Vietnam? (Internet image)
Who is required to participate in compulsory social insurance in Vietnam?
In accordance with Article 2 of the Social Insurance Law 2014, the entities required to participate in compulsory social insurance in Vietnam are as follows:
(1) Vietnamese citizens who are required to participate in compulsory social insurance, including:
- Employees working under an indefinite-term labor contract, definite-term labor contract, seasonal labor contract, or a certain job with a term of 3 months to under 12 months, including labor contracts concluded between an employer and the legal representative of a person under 15 years old as stipulated by labor laws;
- Employees working under a labor contract with a term of 1 month to under 3 months;
- Officials and public employees;
- Defense workers, police workers, and other professionals working in cipher organizations;
- Officers, professional soldiers of the People's Army; officers, non-commissioned officers working on technical expertise in the People's Police; persons working in cipher organizations receiving similar benefits as military personnel;
- Non-commissioned officers, soldiers in the People's Army; non-commissioned officers and soldiers in the People's Police serving for a fixed term; military, police, and cipher students receiving subsistence allowances;
- Vietnamese employees working abroad under contracts as stipulated by the Law on Vietnamese Employees Working Abroad under Contract;
- Enterprise managers, cooperative managers receiving a salary;
- Non-specialized employees at commune, ward, and commune-level towns.
(2) Foreign citizens working in Vietnam with a work permit or practicing certificate or practicing license issued by the competent authority of Vietnam are required to participate in compulsory social insurance as regulated by the Government of Vietnam.
(3) Employers who are required to participate in compulsory social insurance include:
- State agencies, public service providers, and units of the people's armed forces;
- Political organizations, socio-political organizations, socio-professional organizations, social organizations, professional associations, and other social organizations;
- Foreign organizations, international organizations operating within the territory of Vietnam;
- Enterprises, cooperatives, individual business households, cooperative groups, other organizations, and individuals employing labor under labor contracts.
What are the 5 policies of compulsory social insurance according to current regulations in Vietnam?
Pursuant to Article 4 of the Social Insurance Law 2014, the regulations are as follows:
Social Insurance Benefits
1. compulsory social insurance includes the following policies:
a) Sickness;
b) Maternity;
c) Occupational accidents and occupational diseases;
d) Retirement;
đ) Survivorship.
2. Voluntary social insurance includes the following policies:
a) Retirement;
b) Survivorship.
3. Supplemental retirement insurance regulated by the Government of Vietnam.
The 5 policies of compulsory social insurance are:
- Sickness;
- Maternity;
- Occupational accidents and occupational diseases;
- Retirement;
- Survivorship.
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