Vietnam: Which social insurance benefit increases due to an increase in the adjustment of salary and income paid for social insurance according to Circular 01/2023/TT-BLDTBXH?
- Who are the subjects whose salary has paid social insurance premiums in Vietnam?
- How will the adjustment of salary and income paid for social insurance in Vietnam in 2023 increase?
- Which social insurance benefits increase due to the adjustment of salary and income paid for social insurance in Vietnam according to Circular 01/2023/TT-BLDTBXH?
Who are the subjects whose salary has paid social insurance premiums in Vietnam?
On January 3, 2023, the Ministry of Labor, War Invalids and Social Affairs issued Circular 01/2023/TT-BLDTBXH stipulating the adjustment of salary and monthly income for which social insurance premiums in Vietnam have been paid.
According to that, in Article 1 of Circular 01/2023/TT-BLDTBXH, the subjects eligible for salary adjustment for which social insurance premiums have been paid include:
- The subjects of salary adjustment for which social insurance premiums have been paid according to the provisions of Clauses 1 and 2, Article 10 of Decree 115/2015/ND-CP include:
+ Employees subject to the salary regime prescribed by the State who start participating in social insurance from January 1, 2016 onward, enjoy lump-sum social insurance or die but their relatives are entitled to a lump-sum survivorship allowance for the period from January 1, 2023 to December 31, 2023.
+ The employee pays social insurance premiums according to the salary regime decided by the employer, enjoys pension, lump-sum allowance upon retirement, lump-sum social insurance, or dies but his/her relatives are entitled a lump-sum survivorship allowance for the period from January 1, 2023 to December 31, 2023.
- Subjects of adjusted monthly income for which social insurance premiums have been paid according to the provisions of Clause 2, Article 4 of Decree 134/2015/ND-CP are voluntary social insurance participants who enjoy pensions or lump-sum allowances upon retirement, lump-sum social insurance or death whose relatives are entitled to a lump-sum survivorship allowance for the period from January 1, 2023 to December 31, 2023.
Vietnam: Which social insurance benefit increases due to an increase in the adjustment of salary and income paid for social insurance according to Circular 01/2023/TT-BLDTBXH?
How will the adjustment of salary and income paid for social insurance in Vietnam in 2023 increase?
According to Circular 01/2023/TT-BLDTBXH issued on January 3, 2023, it has announced the new adjustment of salary and monthly income for which social insurance premiums have been paid (also known as slippage coefficient). Specifically, the provisions in Articles 2 and 3 of are as follows:
For the monthly salary for which social insurance has been paid, the adjustment in Article 2 of Circular 01/2023/TT-BLDTBXH is as follows:
- The formula for calculating the monthly salary for which social insurance premiums have been paid for the subjects specified in Clause 1, Article 1 of this Circular:
Monthly salary on which social insurance premiums are based after adjustment of each year = Total monthly salary on which social insurance premiums are based x Adjustment of salary paid for social insurance in the corresponding year
In which, the adjustment of the salary for which social insurance premiums have been paid for the corresponding year is made according to Table 1 below:
The monthly income for which social insurance premiums have been paid for the subjects specified in Clause 2, Article 1 of this Circular shall be adjusted according to the formula in Article 3 of Circular 01/2023/TT-BLDTBXH as follows:
Monthly income on which voluntary social insurance premiums are based after adjustment of each year = Total monthly income on which social insurance premiums are based in each year x Adjusted income for which social insurance premiums are paid in the corresponding year
In which, the adjustment of monthly income for which social insurance premiums have been paid for the respective year is made according to Table 2 below:
Note:
- For employees who both have time to pay compulsory social insurance and have time to pay voluntary social insurance, the monthly income for which voluntary social insurance premium has been paid shall be adjusted according to the provisions of Clause 1 of this Article;
- The monthly salary for which compulsory social insurance has been paid shall be adjusted according to the provisions of Article 10 of Decree 115/2015/ND-CP and Article 2 of this Circular.
- The average salary and monthly income for which social insurance premiums have been paid as a basis for calculation of pension, lump-sum allowance upon retirement, lump-sum social insurance and lump-sum survivorship allowance shall be calculated according to regulations in Clause 4, Article 11 of Decree 115/2015/ND-CP and Clause 4, Article 5 of Decree 134/2015/ND-CP.
Which social insurance benefits increase due to the adjustment of salary and income paid for social insurance in Vietnam according to Circular 01/2023/TT-BLDTBXH?
According to the provisions of Article 10 of Decree 115/2015/ND-CP and Article 63 of the 2014 Law on Social Insurance in Vietnam:
The adjusted monthly salary/income on which social insurance premiums are based will be used to calculate the average monthly salary/income on which social insurance premiums are based (Mbqtl) of employees:
Mbqtl = Total monthly salary on which social insurance premiums are adjusted / Total number of months on which social insurance premiums are paid
Thus, when increasing due to the adjustment of salary and income paid for social insurance in 2023, the average monthly salary on which social insurance premiums are based will also increase.
Therefore, the social insurance bonuses calculated based on the average monthly salary on which social insurance premiums are based will also increase, including:
- Increase lump-sum social insurance benefits
- Increase monthly pension benefits
- Increase the allowance level once upon retirement if the social insurance premium payment exceeds the number of years, the rate of 75% is calculated.
- Increase lump-sum survivorship allowance.
Circular 01/2023/TT-BLDTBXH takes effect from February 20, 2023.
The provisions of this Circular apply from January 1, 2023 and replace Circular 36/2022/TT-BLDTBXH.
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