Vietnam: In 2024, what is the newest indexation rate of monthly salary and income after payment of social insurance premiums under Circular 20/2023/TT-BLDTBXH?

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• In 2024, what is the indexation rate of monthly salary after payment of social insurance premiums in Vietnam under Circular 20/2023/TT-BLDTBXH?
• In 2024, what is the indexation rate of monthly income after payment of social insurance premiums in Vietnam?
• Under Circular 20/2023/TT-BLDTBXH, what is the time for application of the newest indexation rate of monthly salary and income after payment of social insurance premiums in Vietnam?

In 2024, what is the indexation rate of monthly salary after payment of social insurance premiums in Vietnam under Circular 20/2023/TT-BLDTBXH?

>> See more: In 2024, what is the newest indexation rate of monthly salary and income after payment of social insurance premiums? Which amounts of employees are affected by the indexation rate?

Under the provisions of Article 2 of Circular 20/2023/TT-BLDTBXH, the monthly salaries after payment of social insurance premiums shall be indexed as follows:

In that formula, the indexation rate of monthly salary after payment of social insurance premiums in the corresponding year shall be determined, based on Table 1 given hereunder:

Table 1:

Note: The formula applies to the monthly salaries after payment of social insurance premiums of:

- Employees who are subject to the pay scheme under the State’s regulations, started participating in social insurance programs from January 01, 2016 and earlier, have already enjoyed the one-off social insurance benefit payments, or are dead after bequeathing their relatives the right of entitlement to one-off social insurance benefit payments already received within the period from January 01, 2024 to December 31, 2024.

- Employees who pay social insurance premiums according to the pay scheme decided by employers, receive retirement pensions or one-off allowances upon retirement, one-off social insurance benefit payments, or are dead after bequeathing their relatives the right of entitlement to one-off death insurance benefit payments received from January 01, 2024 to December 31, 2024.

If employees have paid social insurance premiums for periods under both the pay scheme prescribed by the State’s regulations and the pay scheme decided by employers, monthly salaries after payment of social insurance premiums of those employees who started participating in social insurance programs according to the pay scheme regulated by the State from January 01, 2016 and earlier, and monthly salaries after payment of social insurance premiums according to the pay scheme decided by employers shall be adjusted in accordance with the provisions in Clause 1 of Article 2 Circular 20/2023/TT-BLDTBXH.

In 2024, what is the indexation rate of monthly income after payment of social insurance premiums in Vietnam?

Under the provisions of Article 3 of Circular 20/2023/TT-BLDTBXH, the monthly income after payment of social insurance premiums shall be indexed as follows:

In that formula, the indexation rate of monthly income after payment of social insurance premiums in the corresponding year shall be determined, based on Table 2 given hereunder:

Table 2:

Note: The formula applies to the monthly income after payment of social insurance premiums of: persons subject to the indexation of monthly incomes after payment of social insurance premiums as provided by Clause 2 Article 4 of Decree No. 134/2015/ND-CP must be voluntary social insurance participants who are entitled to one-off payment of pensions, allowances upon retirement and social insurance benefits, or are dead after bequeathing their relatives the right of entitlement to one-off death insurance benefit payments already received from January 01, 2024 to December 31, 2024.

- If employees have both compulsory social insurance contribution period and voluntary one, the monthly income after payment of voluntary social insurance premiums shall be indexed according to Clause 1 of this Article while the monthly salary after payment of compulsory social insurance premiums shall be indexed according to the provisions in Article 10 of the Decree No. 115/2015/ND-CP and Article 2 of this Decree.

The average rate of monthly salary and income after payment of social insurance premiums which are used as a basis for calculation of retirement pensions, one-off allowances upon retirements, one-off social insurance benefit payments and one-off death insurance benefit payments as provided for in Clause 4 Article 11 of the Decree No. 115/2015/ND-CP and Clause 4 Article 5 of Decree No.134/2015/ND-CP.

Under Circular 20/2023/TT-BLDTBXH, what is the time for application of the newest indexation rate of monthly salary and income after payment of social insurance premiums in Vietnam?

Under the provisions of Article 4 of Circular 20/2023/TT-BLDTBXH as follows:

Implementation

1. This Circular comes into force from February 15, 2024; provisions of this Circular shall apply from January 01, 2024.

2. The Circular No. 01/2023/TT-BLDTBXH dated January 03, 2023 of the Minister of Labor, War Invalids and Social Affairs of Vietnam shall cease to take effect from the effective date of this Circular.

3. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Labour, War Invalids and Social Affairs of Vietnam for consideration./.

Thus, Circular 20/2023/TT-BLDTBXH comes into force from February 15, 2024; provisions of this Circular shall apply from January 01, 2024.