Social Insurance Contribution Based on Contractual Salary or Actual Received Salary?

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According to the provisions of Article 89 of the Law on Social Insurance 2014, Article 17 of Decree 115/2015/ND-CP, Article 30 of Circular 59/2015/TT-BLDTBXH, and Article 4 of Circular 47/2015/TT-BLDTBXH, from January 1, 2018, the monthly salary subject to social insurance contribution is the salary, salary allowance, and other additional amounts as prescribed by labor law stated in the labor contract.

Among them, the salary allowance included in social insurance contribution consists of the allowances to compensate for factors related to working conditions, job complexity, living conditions, labor attraction level that the salary agreed in the labor contract has not accounted for or fully accounted for, such as position allowance, title allowance, responsibility allowance, heavy, hazardous, dangerous allowance, seniority allowance, regional allowance, mobility allowance, attraction allowance, and similar allowances.

Other additional amounts included in social insurance contribution are those that can be specifically determined along with the agreed salary in the labor contract and regularly paid in each salary period.

Note: The monthly salary subject to compulsory social insurance does not include policies and other welfare benefits, such as bonuses as prescribed in Article 103 of the Labor Code, initiative rewards, mid-shift meals, support for transportation, phone, travel, housing, childcare, small child care, support when the employee has a deceased relative, employee's relative gets married, employee's birthday, allowance for employees in difficult circumstances due to work accidents, occupational diseases, and other support and allowances recorded as separate items in the labor contract.

Thus, according to the above regulations, the monthly salary for social insurance contribution is based on the salary stated in the labor contract, not the employee's net salary. At the same time, this monthly salary for social insurance contribution does not include all allowances and other additional amounts, but only certain amounts that can be predetermined and fixed monthly.

Nguyen Trinh

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