Social insurance price slippage coefficient for 2025 in Vietnam

Social insurance price slippage coefficient for 2025 in Vietnam (Image from the Internet)

On January 10, 2025, the Minister of Labor, War Invalids, and Social Affairs of Vietnam issued Circular 01/2025/TT-BLDTBXH stipulating the adjustment level for salaries and monthly income that have contributed to social insurance.

Social insurance price slippage coefficient for 2025 in Vietnam

The social insurance price adjustment coefficient for 2025 is stipulated by the Ministry of Labor, War Invalids, and Social Affairs as follows:

- For the salary price adjustment coefficient for social insurance contribution: Implemented according to Table 1 in Clause 1, Article 2 of Circular 01/2025/TT-BLDTBXH:

Note: For employees with periods of social insurance contribution under both state-regulated salary policies and employer-decided salary policies, the monthly salary contributing to social insurance starting from January 1, 2016, under state policies and the salary already contributed to social insurance under employer policies is adjusted according to the above regulations.

- For the monthly income price adjustment coefficient for social insurance contribution: Implemented according to Table 2 in Clause 1, Article 3 of Circular 01/2025/TT-BLDTBXH:

Note: For employees with periods of both compulsory and voluntary social insurance contributions, the monthly income that has contributed to voluntary social insurance is adjusted according to regulations; the monthly salary that has contributed to compulsory social insurance is adjusted according to Article 10 of Decree 115/2015/ND-CP and Article 2 of Circular 01/2025/TT-BLDTBXH.

The average monthly salary and income that has contributed to social insurance, serving as the basis for calculating retirement pensions, lump-sum allowances upon retirement, one-time social insurance, and one-time death benefit, are calculated pursuant to Clause 4, Article 11 of Decree 115/2015/ND-CP and Clause 4, Article 5 of Decree 134/2015/ND-CP.

Formulas for adjusting salaries, monthly income contributed to social insurance in 2025 in Vietnam

(1) Formula for adjusting monthly salary already contributed to social insurance

Monthly salary already contributed to social insurance for individuals specified in Clause 1, Article 1 of Circular 01/2025/TT-BLDTBXH is adjusted using the following formula:

Adjusted monthly salary contributed to social insurance for each year = Total monthly salary contributed to social insurance for each year x Salary adjustment level for social insurance of the corresponding year

(2) Formula for adjusting monthly income already contributed to social insurance

Monthly income already contributed to social insurance for individuals specified in Clause 2, Article 1 of Circular 01/2025/TT-BLDTBXH is adjusted using the following formula:

Adjusted voluntary social insurance income for each year = Total monthly income contributed to social insurance for each year x Adjustment level for monthly income contributed to social insurance of the corresponding year

More details can be found in Circular 01/2025/TT-BLDTBXH, effective from February 28, 2025; the regulations in Circular 01/2025/TT-BLDTBXH apply from January 1, 2025.

Circular 20/2023/TT-BLDTBXH dated December 29, 2023, by the Minister of Labor, War Invalids, and Social Affairs, which stipulates the adjustment level for salaries and monthly income already contributed to social insurance, will cease to be effective from the effective date of Circular 01/2025/TT-BLDTBXH.

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