What is the maximum monthly salary for compulsory social insurance premiums in Vietnam?

What is the maximum monthly salary for compulsory social insurance premiums in Vietnam?

Pursuant to Clause 3 Article 89 of the Law on Social Insurance in 2014 stipulating monthly salary on which compulsory social insurance premiums are based as follows:

Monthly salary on which compulsory social insurance premiums are based

1. For employees subject to the State-prescribed salary benefits, their monthly salary on which social insurance premiums are based is their rank- or grade-based salary plus position-based, extra-rank working seniority-based or occupation-based seniority allowance (if any).

For employees defined at Point i, Clause 1, Article 2 of this Law, their monthly salary on which social insurance premiums are based is the statutory pay rate.

2. For employees who pay social insurance premiums according to the employer-decided salary benefits, their monthly salary on which social insurance premiums are based is their salary plus salary-based allowance as prescribed in the labor law.

Since January 1, 2018, the monthly salary on which social insurance premiums are based will be the salary plus salary-based allowance and other amounts as prescribed in the labor law.

3. In case the monthly salary specified in Clause 1 or 2 of this Article exceeds 20 times the statutory pay rate, the monthly salary on which social insurance premiums are based must equal 20 times the statutory pay rate.

4. The Government shall stipulate in detail the retrospective collection and payment of monthly salaries on which compulsory social insurance premium are based for employees and employers, except the case specified in Clause 3, Article 122 of this Law.

As regulations above, in case the monthly salary exceeds 20 times the statutory pay rate, the monthly salary on which social insurance premiums are based must equal 20 times the statutory pay rate.

Currently, the statutory pay rate is set at 1,800,000 VND/month. Therefore, the compulsory social insurance premium is 36,000,000 VND/month.

What is the maximum monthly salary for compulsory social insurance premiums in Vietnam? - Source: Internet

Can the monthly salary for compulsory social insurance premiums be lower than the region-based statutory minimum wages in Vietnam?

Based on Subsection 3.2.d, Section 3 of Official Dispatch 1952/BHXH-TST in 2023, the monthly salary used as the basis for payment is as follows:

Monthly salary used as the basis for payment:

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3.2. Salary determined by the unit:

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d) The monthly salary for compulsory social insurance, health insurance, and unemployment insurance must not be lower than the region-based statutory minimum wage at the time of payment for employees who perform the simplest job or position in normal working conditions.

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As regulations above, the monthly salary for compulsory social insurance premiums cannot be lower than the region-based statutory minimum wages at the time of payment for employees who perform the simplest job or position in normal working conditions.

In addition, pursuant to Clause 1 Article 3 of the Decree 38/2022/NĐ-CP, the region-based statutory minimum wages per month and per hour paid to employees are provided for as follows:

What are cases of suspension from payment of compulsory social insurance in Vietnam? What is the time for suspension?

Pursuant to Clause 1 and 3, Article 16 of the Decree 115/2015/NĐ-CP stipulating suspension from payment of compulsory social insurance as follows:

Suspension from payment of compulsory social insurance

Suspension from payment of compulsory social insurance prescribed in the Law on Social insurance is specified as follows:

1. The cases of suspension of payment to the fund of retirement and survivorship:

a) Suspend business operation in 1 month or longer because the employers meet with difficulties due to their structural or technical changes, or economic crisis or recession, or economic restructuring according to state policies or international commitments.

b) The employers meet with difficulties due to natural disasters, conflagration, epidemic diseases, or bad harvest.

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3. Period of suspension of payment to the fund of retirement and survivorship:

a) The period of suspension of payment to the fund of retirement and survivorship not exceeding 12 months. In the period of suspension of payment to the fund of retirement and survivorship, the employer must still contribute to the fund of sickness and maternity and the fund of occupational accidents and occupational diseases.

Upon the expiration of the time limit for payment suspension specified at Point a of this Clause, employers and employees shall continue paying social insurance premiums and make supplementary payment for the suspension period. The supplementary amount paid for the suspension period is not subject to late- payment interest under Clause 3, Article 122 of this Law.

b) Upon the expiration of suspension period prescribed in Point a of this Clause, the employer and the employee shall continue paying social insurance and make a supplementary payment for such suspension period, the supplementary amount shall not be charged late-payment interest prescribed in Clause 3 Article 122 of the Law on Social insurance.

As regulations above, the cases of suspension of payment to the fund of retirement and survivorship are:

- Suspend business operation in 1 month or longer because the employers meet with difficulties due to their structural or technical changes, or economic crisis or recession, or economic restructuring according to state policies or international commitments.

- The employers meet with difficulties due to natural disasters, conflagration, epidemic diseases, or bad harvest.

In addition, the period of suspension of payment to the fund of retirement and survivorship not exceeding 12 months.

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