What are the regulations on monthly salaries as the basis for payment of compulsory social insurance of people working in the State in 2023?
- Who is covered by compulsory social insurance in Vietnam?
- What are the regulations on monthly salaries as the basis for payment of compulsory social insurance of people working in the State in 2023?
- What are the regulations on retirement and death insurance contributions for people working at state agencies and organizations in 2023?
Who is covered by compulsory social insurance in Vietnam?
Pursuant to the provisions of Article 2 of the 2014 Law on Social Insurance in Vietnam as follows:
Employees being Vietnamese citizens shall be covered by compulsory social insurance, including:
- Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full 3 months and under 12 months, including also labor contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labor law;
- Persons working under labor contracts with a term of between full 1 month and under 3 months;
- Cadres, civil servants and public employees;
- Defense workers, public security workers and persons doing other jobs in cipher organizations;
- Officers and professional army men of the people's army; officers and professional non-commissioned officers and officers and technical non- commissioned officers of the people's public security; and persons engaged in cipher work and enjoying salaries like army men;
- Non-commissioned officers and soldiers of the people’s army; non- commissioned officers and soldiers on definite-term service in the people’s public security; army, public security and cipher cadets who are entitled to cost- of-living allowance;
- Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;
- Salaried managers of enterprises and cooperatives;
- Part-time staffs in communes, wards and townships.
Employees who are foreign citizens working in Vietnam with work permits or practice certificates or practice licences granted by competent Vietnamese agencies shall be covered by compulsory social insurance under the Government’s regulations.
What are the regulations on monthly salaries as the basis for payment of compulsory social insurance of people working in the State in 2023?
What are the regulations on monthly salaries as the basis for payment of compulsory social insurance of people working in the State in 2023?
Pursuant to the provisions of Clause 1, Article 6 of Decision No. 595/QD-BHXH in 2017 (amended by Clause 12, Article 1 of Decision No. 505/QD-BHXH in 2020) stipulating monthly salaries as the basis for payment of compulsory social insurance:
Monthly salaries as the basis for payment of compulsory social insurance according to Article 89 of the Law on Social insurance and its instructional documents
1. Salaries paid by the State
Regarding a worker whose salary is paid by the State, the monthly salary as the basis for payment of compulsory social insurance is the salary plus (+) position allowance and seniority pay (if any). This salary is calculated according to the statutory pay rate.
The monthly salary as the basis for payment of compulsory social insurance mentioned in this Point also applies the reassignment coefficient specified by salary laws.
1.2. The SI-subjected monthly pay of the employees referred to in point 1.6 of clause 1 of Article 4 is the base pay rate (denominated in Vietnamese dong).
Thus, the monthly salaries as the basis for payment of compulsory social insurance of the subjects working as State officials are the salaries plus (+) position allowance and seniority pay.
What are the regulations on retirement and death insurance contributions for people working at state agencies and organizations in 2023?
Pursuant to Point 1.1, Clause 1, Article 5 of Decision No. 595/QD-BHXH in 2017 (amended by Clause 10, Article 1 of Decision No. 505/QD-BHXH in 2020) stipulating the social insurance contributions and responsibility for paying social insurance contributions as follows:
- The employees shall monthly pay 8% of their monthly salaries to retirement and death benefit funds, including:
+ Officials and public employees prescribed by law;
+ National defense workers, police workers and other people working for cipher organization in the cases where the social insurance authority of the Ministry of National Defense or the Ministry of Public Security hands over power to the social insurance authority of the province.
+ Managers of enterprises and directors of cooperatives receiving salaries;
+ Part-time staffs of communes, wards and towns shall monthly pay 8% of statutory pay rate to retirement and death benefit funds.
- If the employees prescribed as above and people whose period of payment of compulsory social insurance reserved still lack 06 months or less to be eligible for receiving pensions or death benefit benefits, the contribution rate shall be 22% of their monthly salary as the basis for payment of compulsory social insurance before they take leave or die to the retirement and death benefit funds.
- Social insurance contributions payable by the employers include regulatory authorities, public service providers, people’s armed forces, political organizations, socio-political organizations, socio-political-professional organizations, social-professional organizations and other social organizations:
+ Pay 3% of the salary fund to the sickness and maternity fund;
+ Pay 14% of the salary fund to retirement and death benefit funds.
- Employers shall pay 14% of statutory pay rate to retirement and death benefit funds for part-time staffs of communes, wards and towns.
In addition, according to Article 22 of Decision No. 595/QD-BHXH in 2017, employers shall pay a monthly amount of 0.5% of the budget for payment of salaries that are the basis for payment of occupational accident and occupational disease insurance.
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