What are regulations on adjustment of monthly income used for social insurance contributions in Vietnam from February 28, 2025?
Which subjects are adjusted for monthly income used for social insurance contributions in Vietnam?
Pursuant to Article 1 of Circular 01/2025/TT-BLDTBXH regarding applicable subjects:
Article 1. Applicable Subjects
- Subjects eligible for the adjustment of salary contributions to social insurance as stipulated in Clauses 1 and 2 of Article 10 of Decree 115/2015/ND-CP include:
a) Employees under the salary policy prescribed by the State who started participating in social insurance from January 1, 2016, onwards, and are eligible for a retirement pension, a lump-sum benefit upon retirement, a lump-sum social insurance settlement, or who pass away with relatives receiving a lump-sum death benefit between January 1, 2025, and December 31, 2025.
b) Employees contributing to social insurance under salary policies determined by employers who are eligible for a retirement pension, a lump-sum benefit upon retirement, a lump-sum social insurance settlement, or who pass away with relatives receiving a lump-sum death benefit between January 1, 2025, and December 31, 2025.
- Subjects eligible for the adjustment of monthly income used for social insurance contributions as stipulated in Clause 2 of Article 4 of Decree 134/2015/ND-CP are voluntary social insurance participants eligible for a retirement pension, a lump-sum benefit upon retirement, a lump-sum social insurance settlement, or who pass away with relatives receiving a lump-sum death benefit between January 1, 2025, and December 31, 2025.
Therefore, the subjects eligible for adjusting monthly income used for social insurance contributions are voluntary social insurance participants eligible for a retirement pension, a lump-sum benefit upon retirement, a lump-sum social insurance settlement, or who pass away with relatives receiving a lump-sum death benefit between January 1, 2025, and December 31, 2025.
What are regulations on adjustment of monthly income used for social insurance contributions in Vietnam from February 28, 2025? (Image from the Internet)
What are regulations on adjustment of monthly income used for social insurance contributions in Vietnam from February 28, 2025?
According to Article 3 of Circular 01/2025/TT-BLDTBXH, the monthly income used for social insurance contributions are adjusted according to the following formula:
Monthly Income from Voluntary Social Insurance Contributions after Adjustment of Each Year = Total Monthly Income Contributions of Each Year x Adjustment Coefficient of Monthly Income Contributions for the Corresponding Year
Where the adjustment coefficient of monthly income contributions for the corresponding year is made as per the following table:
For employees with both mandatory and voluntary social insurance contribution periods, the voluntarily contributed monthly income is adjusted according to the above formula.
The monthly salary contributions to mandatory social insurance are adjusted as stipulated in Article 10 of Decree 115/2015/ND-CP and Article 2 of Circular 01/2025/TT-BLDTBXH.
The average monthly salary and income used as the basis for calculating pensions, a lump-sum benefit upon retirement, social insurance settlements, and lump-sum death benefits are calculated according to Clause 4, Article 11 of Decree 115/2015/ND-CP and Clause 4, Article 5 of Decree 134/2015/ND-CP.
From July 1, 2025, how many tears of mandatory social insurance contribution are required for pension eligibility in Vietnam?
Based on Article 64 of the Social Insurance Law 2024, the eligible subjects and conditions for pension entitlement are stipulated as follows:
Article 64. Eligible Subjects and Conditions for Pension Entitlement
- Subjects specified in points a, b, c, g, h, i, k, l, m, and n of Clause 1 and Clause 2 of this Law, upon cessation of work with a minimum of 15 years of mandatory social insurance contributions, are entitled to a pension if one of the following conditions is met:
a) The retirement age as prescribed in Clause 2, Article 169 of the Labor Code is met;
b) The retirement age as prescribed in Clause 3, Article 169 of the Labor Code is met, and a total of at least 15 years of mandatory social insurance is contributed while working in heavy, hazardous, dangerous occupations or particularly heavy, hazardous, dangerous occupations from the list prescribed by the Minister of Labor - War Invalids and Social Affairs or working in areas with special socio-economic difficulties, including pre-January 1, 2021, work periods eligible for a regional allowance coefficient of 0.7 or upwards;
c) Aged no more than 10 years below the minimum age stipulated in Clause 2, Article 169 of the Labor Code and having at least 15 years in underground coal mining work under Government regulations;
d) Infected with HIV/AIDS due to occupational risks while performing assigned duties.
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According to the above provisions, employees participating in mandatory social insurance who cease work with a minimum of 15 years of contributions and meet the specified conditions are entitled to a pension.
