Basis for compulsory and voluntary social insurance premium payments in Vietnam from July 1, 2025

Basis for compulsory and voluntary social insurance premium payments in Vietnam from July 1, 2025 (Image from the Internet)

On June 29, 2024, the National Assembly of Vietnam passed the Law on Social Insurance 2024.

Basis for compulsory and voluntary social insurance premium payments in Vietnam from July 1, 2025

Article 31 of the Law on Social Insurance 2024 prescribes the basis for compulsory and voluntary social insurance premium payments in Vietnam as follows:

- The salary serving as the basis for compulsory social insurance contributions is defined as follows:

+ For employees subject to salary policies stipulated by the State, the salary serving as the basis for compulsory social insurance contributions is the monthly salary according to position, title, rank, grade, military rank, and various position allowances, seniority beyond the frame, seniority in the profession, and salary retention coefficient (if any);

+ For employees subject to salary policies decided by the employer, the salary serving as the basis for compulsory social insurance contributions is the monthly salary, including the salary level based on job or title, salary allowances, and other regularly, stably agreed-upon additional payments in each pay period.

In the case of employees who have stopped working but still receive monthly wages equal to or higher than the minimum salary serving as the basis for compulsory social insurance contributions, contributions will be made based on the wages received during the stopping period;

+ For those defined in points (dd), (e), and (k) of Clause 1, Article 2 of the Law on Social Insurance 2024, the salary serving as the basis for compulsory social insurance contributions is stipulated by the Government of Vietnam;

+ For those defined in points (g), (h), (m), and (n) of Clause 1, Article 2 of the Law on Social Insurance 2024, they can choose their salary serving as the basis for compulsory social insurance contributions, which must be at least the reference level and at most 20 times the reference level at the time of contribution.

After at least 12 months of contributing to social insurance based on the chosen salary, employees can reselect the salary serving as the basis for social insurance contributions;

+ The salary serving as the basis for compulsory social insurance contributions must be at least the reference level and at most 20 times the reference level at the time of contribution.

- The income serving as the basis for voluntary social insurance contributions must be at least the poverty standard of rural areas and at most 20 times the reference level at the time of contribution.

Subjects of compulsory social insurance and promoting subjects of voluntary social insurance in Vietnam

Article 30 of the Law on Social Insurance 2024 prescribes the subjects participating in compulsory social insurance and developing participants in voluntary social insurance in Vietnam as follows:

- The social insurance agency presides and cooperates with the relevant agencies, organizations, and individuals in identifying and monitoring the subjects participating in compulsory social insurance as specified in Article 2 of the Law on Social Insurance 2024; urges and guides the preparation of registration dossiers to participate in compulsory social insurance.

The ministries, equivalent agencies, and People's Committees at all levels cooperate with the social insurance agency to organize the identification of subjects participating in compulsory social insurance.

- The social insurance agency presides and cooperates with the relevant agencies, organizations, and individuals to promote the development of participants in voluntary social insurance.

- The managing agencies of the national database and specialized databases on labor, population, tax, and enterprise registration are responsible for connecting and sharing information and data related to participants and those eligible for social insurance with the social insurance agency as prescribed by the Government of Vietnam.

See more about the Law on Social Insurance 2024 which takes effect from July 1, 2025.

The Law on Social Insurance 2014 and Resolution 93/2015/QH13 cease to be effective from the date the Law on Social Insurance 2024 takes effect in Vietnam.

To Quoc Trinh

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