What are the regulation on indexation rate of monthly salary and income after payment social insurance in Vietnam from January 1, 2022?

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• What are the regulation on indexation of salary after payment social insurance in Vietnam?
• What are the regulation on indexation of monthly salary after payment social insurance in Vietnam?
• What time are the regulation on indexation of salary and income after payment social insurance in Vietnam applied?

What are the regulation on indexation of salary after payment social insurance in Vietnam?

Pursuant to Clause 1, Article 1 of Circular 36/2021/TT-BLDTBXH on indexation rate of salary after payment social insurance, regulated entities are as follows:

"Article 1. Regulated entities:

1. Persons subject to the indexation of salary after payment of social insurance as prescribed in Clause 1 and Clause 2 Article 10 of Decree No. 115/2015/ND-CP include:

a) Employees who are subject to the pay scheme under the State’s regulations, started participating in social insurance programs from January 01, 2016 and onwards, have already enjoyed the one-off social insurance benefit payments, or are dead after bequeathing their relatives the right of entitlement to one-off dead social insurance benefit payments already received within the period from January 01, 2022 to December 31, 2022.

b) Employees who pay social insurance 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, 2022 to December 31, 2022."

According to the guidance in Article 2 of Circular 36/2021/TT-BLDTBXH, indexation contents are as follows:

"Article 2. Indexation of monthly salaries after payment of social insurance

1. Monthly salaries after payment of social insurance of persons specified in Clause 1 Article 1 hereof shall be indexed as follows:

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

2. If employees have paid social insurance 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 of those employees who started participating in social insurance programs according to the pay scheme regulated by the State from January 01, 2016 and onwards, and monthly salaries after payment of social insurance according to the pay scheme decided by employers shall be adjusted in accordance with the regulations in Clause 1 of this Article."

What are the regulation on indexation of monthly salary after payment social insurance in Vietnam?

Pursuant to Clause 2, Article 1 of Circular 36/2021/TT-BLDTBXH on indexation rate of monthly salary after payment social insurance, regulated entities are as follows:

"Article 1. Regulated entities:

...

2. Persons subject to the indexation of monthly incomes after payment of social insurance 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, 2022 to December 31, 2022.

According to the guidance in Article 3 of Circular 36/2021/TT-BLDTBXH, indexation contents are as follows:

"Article 3. Indexation of monthly income after payment of social insurance

1. Monthly income after payment of social insurance of persons specified in Clause 2 Article 1 hereof shall be indexed as follows:

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

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

What time are the regulation on indexation of salary and income after payment social insurance in Vietnam applied?

According to the guidance in Article 4 of Circular 36/2021/TT-BLDTBXH as follows:

"Article 4. Implementation clauses

1. This Circular comes into force from February 20, 2022; provisions of this Circular shall apply from January 01, 2022.

2. The Circular No. 23/2020/TT-BLDTBXH dated December 30, 2019 of the Minister of Labor, War Invalids and Social Affairs on prescribing indexation rate of monthly salary and income after payment of social insurance contributions 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 Labor, War Invalids and Social Affairs for consideration."

Thus, Circular 36/2021/TT-BLDTBXH takes effect from February 20, 2022, and regulations of Circular 36/2021/TT-BLDTBXH shall be applied from January 1, 2022.