Adjustment of salary after payment of social insurance contributions in Vietnam applied from January 1, 2023

Adjustment of salary after payment of social insurance contributions in Vietnam applied from January 1, 2023 (Internet image)

The regulations on the adjustment of wages paid social insurance applied from January 1, 2023 are as follows:

1. Persons subject to the adjustment of salary after payment of social insurance contributions in Vietnam

According to Article 1 of Circular 01/2023/TT-BLDTBXH, persons subject to the adjustment of salary after payment of social insurance contributions shall be subject to clause 1 and clause 2 of Article 10 in 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 1, 2016 or 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 1, 2023 to December 31, 2023.

- Employees who pay social insurance contributions according to the pay scheme decided by employers, receive retirement pensions or 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 1, 2023 to December 31, 2023. 

Persons subject to the adjustment in monthly salaries after payment of social insurance contributions as provided by clause 2 of Article 4 in the Decree 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 1, 2023 to December 31, 2023. 

2. The adjustment of monthly salary paid social insurance premiums applies from January 1, 2023

Monthly salaries after payment of social insurance contributions of persons specified in clause 1 of Article 1 herein shall be adjusted as follows:

In that formula, the adjustment rate of monthly salary after payment of social insurance contributions in the corresponding year shall be based on Table 1 given hereunder:

Table 1:

If employees have paid social insurance contributions for periods under both the pay scheme prescribed by the State’s regulations and the pay scheme decided by employers, monthly salaries after payment of social insurance contributions of those employees who started participating in social insurance programs according to the pay scheme regulated by the State from January 1, 2016 and earlier, and monthly salaries after payment of social insurance contributions according to the pay scheme decided by employers shall be adjusted in accordance with clause 1 of Article 2 of Circular 01/2023/TT-BLDTBXH.

3. Adjustment of monthly income paid social insurance premiums

Article 3 of Circular 01/2023/TT-BLDTBXH stipulates that monthly income after payment of social insurance contributions of persons specified in clause 2 of Article 1 of Circular 01/2023/TT-BLDTBXH  shall be adjusted as follows:

In that formula, the adjustment rate of monthly income after payment of social insurance contributions in the corresponding year shall be determined, based on Table 2 given hereunder:

Table 2:

 If employees have both compulsory social insurance contribution period and voluntary one, the monthly income after payment of voluntary social insurance contributions shall be adjusted according to clause 1 of this Article while the monthly income after payment of compulsory social insurance contributions shall be adjusted according to Article 10 in Decree 115/2015/ND-CP and Article 2 of the Circular From 01/2023/TT-BLDTBXH.

The average rate of monthly salary and income after payment of social insurance contributions which are used as a basis for calculation of retirement pensions, one-off allowances upon retirements, one-off social insurance benefit payments and one-off death insurance benefit payments as provided in clause 4 of Article 11 in Decree 115/2015/ND-CP and Clause 4 Article 5 of Decree 134/2015/ND-CP.

Circular 01/2023/TT-BLDTBXH takes effect from February 20, 2023; the provisions of Circular 01/2023/TT-BLDTBXH apply from January 1, 2023.

Nhu Mai