13th Month Salary is Not Included in Social Insurance Contribution Calculations

17:38, 10/07/2024

This is the noteworthy content mentioned in Official Dispatch 560/LDTBXH-BHXH regarding the determination of salaries as the basis for calculating social insurance contributions.

from January 01, 2018, onwards, the monthly salary for social insurance contributions includes base salary, salary allowances, and other supplementary amounts.

The mandatory monthly salary for social insurance contributions does not include policy and other welfare benefits such as:

- Bonuses as prescribed in Article 103 of the 2012 Labor Code, initiative bonuses;- Meal allowances; support for gasoline, phone, transportation, housing, child care, and small child raising;- Support when employees have deceased relatives, employees have family members getting married, employees' birthdays, assistance for employees facing difficulties due to work accidents or occupational diseases;- Other support and allowances stated separately in the labor contract as per Clause 11, Article 4 of Decree 05/2015/ND-CP.

Additionally, Article 103 of the 2012 Labor Code stipulates that bonuses are amounts given by employers to employees based on annual production, business results, and the level of task completion by employees.

Thus, employee bonuses at enterprises (including the 13th-month salary bonus and bonuses based on annual work performance evaluations) are not the basis for calculating social insurance contributions.

The mandatory monthly salary for social insurance contributions is implemented according to the provisions of Article 89 of the 2014 Social Insurance Law, Article 17 of Decree 115/2015/ND-CP, Article 30 of Circular 59/2015/TT-BLDTBXH.

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