To amend the payment rate and salary calculated for compulsory social insurance in Vietnam

To amend the payment rate and salary calculated for compulsory social insurance in Vietnam (Internet image)

According to this Decision, the Prime Minister of Vietnam assigned the Minister of Labor, War Invalids, and Social Affairs to preside over and coordinate with relevant ministries and agencies to urgently amend regulations on the basis that paying social insurance in the corporate sector is at least about 70% of the total salary and other income of the employee's salary to overcome the situation of evasion and insufficient payment of social insurance, affecting the ability to balance the social insurance fund and benefits of employees according to Resolution 28-NQ/TW and Resolution 125/NQ-CP dated October 8, 2018, promulgating the Government's Action Program to implement Resolution 28-NQ/TW.

Previously, according to Section III.8 Resolution 28-NQ/TW, one of the contents of the proposed social insurance policy reform was to amend regulations on social insurance payment rates and bases to achieve the goal of expanding social insurance coverage, specifically:

Amend regulations on the basis for social insurance contributions of the corporate sector to at least equal about 70% of the total salary and other income of the employee's salary nature to overcome the situation of evasion and insufficient payment of social insurance, affecting the ability to balance the Social Insurance Fund and workers' rights. Research to adjust the rate of contribution to the Social Insurance Fund in the direction of harmonizing the benefits between employers and employees.

Thus, according to the above content, in the near future, the payment rates and salaries calculated for compulsory social insurance will be adjusted.

In addition, in Decision 500/QD-TTg, the Prime Minister also assigned the Ministry of Labor, Invalids, and Social Affairs to implement the following contents:

- Preside and coordinate with Vietnam Social Insurance and relevant agencies to propose targets for developing subjects participating in social insurance and unemployment insurance in the period 2021–2025 to achieve the goals set out in Resolution 28-NQ/TW.

- Preside and coordinate with the Ministry of Finance to study the proposal of Vietnam Social Insurance in Official Dispatch 02/BHXH-KHDT dated January 20, 2021 on voluntary social insurance support policy to ensure synchronization and consistency with the amendment and supplementation of social insurance policies according to Resolution 28-NQ/TW.

- Preside and coordinate with the Minister of Finance to urgently regulate prices for consulting and job placement services from the unemployment insurance fund to be uniform nationwide to have a basis for implementing consulting and job placement using unemployment insurance funds;

- Direct and guide the Departments of Labor, War Invalids, Social Affairs, and local Employment Service Centers to organize and operate within the assigned budget.
to perform the task of receiving documents and handling insurance policies for labor accidents, occupational diseases, and unemployment insurance; organize and synchronize the implementation of information technology application activities on unemployment insurance.

More details can be found in Decision 500/QD-TTg taking effect on March 30, 2021.

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