From 01/01/2023, what are regulations on indexation of monthly salaries after payment of social insurance in Vietnam?

What are regulations on indexation of monthly salaries after payment of social insurance in Vietnam?

Pursuant to Clause 1 Article 2 of the Circular 36/2021/TT-BLĐTBXH stipulating regulations on indexation of monthly salaries after payment of social insurance in Vietnam in 2022 as follows:

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:

Table 1:

Pursuant to Article 2 of the Circular 01/2023/TT-BLĐTBXH stipulating regulations on indexation of monthly salaries after payment of social insurance in Vietnam in 2023 as follows:

1. Monthly salaries after payment of social insurance contributions of persons specified in clause 1 of Article 1 herein shall be adjusted as follows:

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

Table 1:

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

As regulations above, Adjusted monthly salary after payment of social insurance contributions in each year = Total monthly salary after payment of social insurance contributions in each year x Adjustment rate of monthly salary after payment of social insurance contributions in the corresponding year

What are regulations on adjustment of monthly income after payment of social insurance contributions in Vietnam?

Pursuant to Article 3 of the Circular 01/2023/TT-BLĐTBXH stipulating regulations on adjustment of monthly income after payment of social insurance contributions in Vietnam in 2023 as follows:

1. Monthly income after payment of social insurance contributions of persons specified in clause 2 of Article 1 herein shall be adjusted as follows:

Adjusted monthly income after payment of social insurance contributions in each year

=

Total monthly income after payment of social insurance contributions in each year

x

Adjustment rate of monthly income after payment of social insurance contributions in the corresponding year

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

Table 2:

Year	2008	2009	2010	2011	2012	2013	2014	2015
Adjustment rate	2,07	1,94	1,77	1,50	1,37	1,28	1,23	1,23
Year	2016	2017	2018	2019	2020	2021	2022	2023
Adjustment rate	1,19	1,15	1,11	1,08	1,05	1,03	1,00	1,00

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 adjusted according to clause 1 of this Article while the monthly income after payment of compulsory social insurance contributions shall be adjusted according to Article 10 in the Decree No. 115/2015/ND-CP and Article 2 in this Decree. 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 in clause 4 of Article 11 in the Decree No. 115/2015/ND-CP and clause 4 of Article 5 in the Decree No. 134/2015/ND-CP.

As regulations above, Adjusted monthly income after payment of social insurance contributions in each year = Total monthly income after payment of social insurance contributions in each year x Adjustment rate of monthly income after payment of social insurance contributions in the corresponding year.

Which entities shall be applied with adjustment of monthly income after payment of social insurance contributions in Vietnam?

Pursuant to Article 1 of the Circular 01/2023/TT-BLĐTBXH stipulating as follows:

- Persons subject to the adjustment of salary after payment of social insurance contributions shall be subject to clause 1 and clause 2 of Article 10 in the Decree No. 115/2015/ND-CP, including:

+ Employees who are subject to the pay scheme under the State’s regulations, started participating in social insurance programs from January 1, 2016 or 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 1, 2023 to December 31, 2023.

+ Employees who pay social insurance contributions according to the pay scheme decided by employers, receive retirement pensions or 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 1, 2023 to December 31, 2023.

- Persons subject to the adjustment in monthly salaries after payment of social insurance contributions as provided by clause 2 of Article 4 in the 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 1, 2023 to December 31, 2023.

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