Determination of Salary for Social Insurance Contributions

The monthly salary for the payment of social insurance for employees according to the wage policies decided by the employer.

According to Clause 2, Article 6 of Decision 595/QD-BHXH in 2017, from January 1, 2018, the employee's income used to calculate mandatory social insurance includes:

+ Salary;

+ Allowances (Allowances defined in Clause 2a, Article 4 of Circular 47/2015/TT-BLDTBXH);

+ And additional amounts with specific identifiable amounts along with the agreed salary in the labor contract and regularly paid in each salary period.

Clause 1, Article 30 of Circular 59/2015/TT-BLDTBXH clearly stipulates that Allowances as per Clause 2a, Article 4 of Circular 47/2015/TT-BLDTBXH include the following allowances:

+ Position and title allowance;

+ Responsibility allowance;

+ Hardship, hazardous, and dangerous allowance;

+ Seniority allowance;

+ Regional allowance;

+ Mobility allowance;

+ Attraction allowance;

+ Other similar allowances.

Clause 3, Article 30 of Circular 59/2015/TT-BLDTBXH, Clause 2.3, Article 6 of Decision 595/QD-BHXH in 2017 state that the monthly salary basis for calculating mandatory social insurance does not include other policies and welfare amounts, such as:

1. Bonuses as stipulated in Article 103 of the 2012 Labor Code

2. Incentive bonuses

3. Mid-shift meal allowances

4. Support for gasoline

5. Telephone support

6. Travel support

7. Housing support

8. Childcare support

9. Support for raising small children

10. Support when an employee's family member passes away

11. Support when an employee's relative gets married

12. Support on the employee's birthday

13. Allowance for employees facing difficulties due to workplace accidents

14. Allowance for employees facing difficulties due to occupational diseases

15. Other support and allowances listed as a separate item in the labor contract according to Clause 11, Article 4 of Decree 05/2015/ND-CP.

Thus, mid-shift meal allowances will not be subject to social insurance. As for productivity wages, if a specific amount is not determined along with the agreed salary in the labor contract but is calculated based on the employee's work results, it is not subject to social insurance.

Therefore, if your company bases social insurance on the basic salary, it is in accordance with the regulations.

Sincerely!