What are regulations on adjustment of monthly salary used for social insurance contributions in Vietnam from February 28, 2025?
Which entities are subject to the adjustment of monthly salary used for social insurance contributions in Vietnam?
On January 10, 2025, the Minister of Labor, War Invalids, and Social Affairs issued Circular 01/2025/TT-BLDTBXH stipulating the adjustment levels of salary and monthly income used for social insurance contributions.
Based on Article 1 of Circular 01/2025/TT-BLDTBXH, the applicable subjects are specified as follows:
Article 1. Applicable Subjects
- Subjects for adjusting the salary contributed to social insurance as stipulated in Clause 1 and Clause 2 of Article 10 of Decree No. 115/2015/ND-CP include:
a) Employees under the salary policies defined by the State, starting to participate in social insurance from January 1, 2016 onwards, receiving retirement pensions, lump-sum allowances upon retirement, lump-sum social insurance or die and their relatives receive a lump-sum survivorship allowance within the period from January 1, 2025, to December 31, 2025.
b) Employees contributing to social insurance under salary policies decided by employers, receiving retirement pensions, lump-sum allowances upon retirement, lump-sum social insurance or die and their relatives receive a lump-sum survivorship allowance within the period from January 1, 2025, to December 31, 2025.
- Subjects for adjusting monthly income contributed to social insurance as stipulated in Clause 2 of Article 4 of Decree No. 134/2015/ND-CP are those participating in voluntary social insurance receiving retirement pensions, lump-sum allowances upon retirement, lump-sum social insurance or die and their relatives receive a lump-sum survivorship allowance within the period from January 1, 2025, to December 31, 2025.
Thus, the subjects for adjusting the monthly salary used for social insurance contributions include:
[1] Employees under the salary policies defined by the State, starting to participate in social insurance from January 01, 2016, onwards, receiving retirement pensions, lump-sum allowances upon retirement, lump-sum social insurance or die and their relatives receive a lump-sum survivorship allowance within the period from January 01, 2025, to December 31, 2025.
[2] Employees contributing to social insurance under salary policies decided by employers, receiving retirement pensions, lump-sum allowances upon retirement, lump-sum social insurance or die and their relatives receive a lump-sum survivorship allowance within the period from January 01, 2025, to December 31, 2025.
What are regulations on adjustment of monthly salary used for social insurance contributions in Vietnam from February 28, 2025? (Image from the Internet)
What are regulations on adjustment of monthly salary used for social insurance contributions in Vietnam from February 28, 2025?
In Article 2 of Circular 01/2025/TT-BLDTBXH, it is stipulated that the monthly salary contributed to social insurance is adjusted according to the following formula:
Monthly salary contributed to social insurance after adjustment for each year = Total monthly salary contributed to social insurance for each year x Adjustment level of social insurance contribution salary of the corresponding year
In which, the adjustment level of social insurance contribution salary of the corresponding year is implemented according to the table below:
For employees who have periods of contributing to social insurance under both State-defined salary policies and employer-decided salary policies, the monthly salary contributed to social insurance for employees who start participating in social insurance under State-defined salary policies from January 01, 2016, onwards and the monthly salary used for social insurance contributions under employer-decided salary policies will be adjusted according to the regulations.
What is level of lump-sum social insurance benefit when participating in compulsory social insurance in Vietnam?
According to Clause 3, Article 70 of the Law on Social Insurance 2024 stipulating the lump-sum social insurance benefit:
Article 70. Lump-Sum Social Insurance Benefit
[...]
- The level of lump-sum social insurance benefit is calculated based on the number of years contributed and the basis of social insurance contributions, excluding the amount of state budget support for voluntary social insurance contributions, calculated as follows for each year:
a) Equal to 1.5 months of the average monthly salary contributed to social insurance for the years contributed before 2014.
If there are periods of social insurance contributions before and after 2014 where the period before 2014 has odd months, these odd months are shifted to the period of social insurance contributions from 2014 onwards to calculate the lump-sum social insurance benefit;
b) Equal to 2 months of the average monthly salary contributed to social insurance for the years contributed from 2014 onwards;
c) If the social insurance contribution period is less than one year, the benefit level is equal to the amount already contributed but not exceeding 2 months of the average monthly salary contributed to social insurance.
[...]
The level of lump-sum social insurance benefit when participating in compulsory social insurance is calculated based on the number of years contributed and the basis of social insurance contributions, excluding the amount of state budget support for voluntary social insurance contributions, calculated as follows for each year:
- Equal to 1.5 months of the average monthly salary contributed to social insurance for the years contributed before 2014.
If there are periods of social insurance contributions before and after 2014 where the period before 2014 has odd months, these odd months are shifted to the period of social insurance contributions from 2014 onwards to calculate the lump-sum social insurance benefit;
- Equal to 2 months of the average monthly salary contributed to social insurance for the years contributed from 2014 onwards;
- If the social insurance contribution period is less than one year, the benefit level is equal to the amount already contributed but not exceeding 2 months of the average monthly salary contributed to social insurance.
Note: The Law on Social Insurance 2024 comes into effect on July 01, 2025.
