Recently, the Ministry of Labor, Invalids and Social Affairs has announced Circular 23/2020/TT-BLDTBXH prescribing indexation rate of monthly salary and income after payment of social insurance contributions 2021, replacing Circular 35/2019/TT-BLDTBXH from February 15, 2021.
Article table of contents
Adjustments to salary and monthly income after payment of social insurance contributions 2021 in Vietnam (Internet image)
According to Circular 23/2020/TT-BLDTBXH, the adjustment to monthly salary after payment of social insurance contributions in 2021 as follows:
A. Adjustments to monthly salary after payment of social insurance contributions
1. Monthly salary after payment of social insurance contributions for subjects specified in Clause 1, Article 1 of Circular 23/2020/TT-BLDTBXH (1) is adjusted according to the following formula:
|
Monthly salary paid for social insurance after adjustment for each year |
= |
Total monthly salary paid for social insurance of each year |
x |
Adjustment level of salary after payment of social insurance contributions for each corresponding year |
In particular, the salary adjustment after payment of social insurance contributions for the corresponding year is made according to Table 1: below:
Table 1:
|
Year |
Before 1995 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
|
Adjustment level |
5.01 |
4.25 |
4.02 |
3.89 |
3.61 |
3.46 |
3.52 |
3.53 |
3.40 |
3.29 |
3.06 |
2.82 |
2.62 |
2.42 |
|
Year |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
|
Adjustment level |
1.97 |
1.84 |
1.69 |
1.42 |
1.30 |
1.22 |
1.18 |
1.17 |
1.14 |
1.10 |
1.06 |
1.03 |
1.00 |
1.00 |
2. For employees who both have time to pay social insurance and are subject to the salary regime prescribed by the State and have time to pay social insurance according to the salary regime decided by the employer, the monthly salary paid for social insurance for employees starting to participate in social insurance according to the salary regime prescribed by the State from January 1, 2016 onwards and the monthly salary after payment of social insurance contributions according to the salary regime decided by the employer is adjusted according to Section 1.
B. Adjustments to monthly income after payment of social insurance contributions in Vietnam
1. Monthly income after payment of social insurance contributions for subjects specified in Clause 2 of Article 1 of Circular 23/2020/TT-BLDTBXH (2) is adjusted according to the following formula:
|
Monthly income paid for voluntary social insurance after adjustment for each year |
= |
Total monthly income paid for social insurance of each year |
x |
Adjusted monthly income after payment of social insurance contributions for the corresponding year |
In particular, the adjustments to monthly income after payment of social insurance contributions for the corresponding year is made according to Table 2 below:
Table 2:
|
Year |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
|
Adjustment level |
1.97 |
1.84 |
1.69 |
1.42 |
1.30 |
1.22 |
1.18 |
|
Year |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
|
Adjustment level |
1.17 |
1.14 |
1.10 |
1.06 |
1.03 |
1.00 |
1.00 |
2. For employees who pay both compulsory social insurance and voluntary social insurance, the monthly income for which voluntary social insurance has been paid is adjusted according to Section 1; the monthly salary for which compulsory social insurance has been paid is adjusted according to the provisions of Article 10 of Decree 115/2015/ND-CP and Article 2 of Circular 23/2020/TT-BLDTBXH . The average monthly salary and income after payment of social insurance contributions as a basis for calculating pension, one-time benefits upon retirement, one-time social insurance, and one-time survivor benefits are calculated according to the provisions of Clause 4 of Article 11 of Decree 115/2015/ND-CP, and Clause 4 of Article 5 of Decree 115/2015/ND-CP.
** Note:
(1) Persons subject to the indexation of salary after payment of social insurance contributions as prescribed in Clause 1 and Clause 2 Article 10 of Decree 115/2015/ND-CP include:
- Employees who are subject to the pay scheme under the State’s regulations, started participating in social insurance programs from January 01, 2016 and 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 01, 2021 to December 31, 2021.
- Employees who pay social insurance contributions according to the pay scheme decided by employers, receive retirement pensions or one-off 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 01, 2021 to December 31, 2021.
(2) Persons subject to the indexation of monthly incomes after payment of social insurance contributions as provided by Clause 2 Article 4 of 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 01, 2021 to December 31, 2021.
Circular 23/2020/TT-BLDTBXH officially takes effect on February 15, 2021, replacing Circular 35/2019/TT-BLDTBXH regulating salary adjustments and monthly income after payment of social insurance contributions.
Thuy Tram
- Key word:
- social insurance contributions
- in Vietnam
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