Adjustment of monthly income for social insurance contributions in Vietnam as of January 01, 2024

Adjustment of monthly income for social insurance contributions in Vietnam as of January 01, 2024

Monthly income after payment of social insurance contributions of persons specified in Clause 2 Article 1 of Circular 20/2023/TT-BLDTBXH shall be indexed as follows:

Indexed monthly income after payment of voluntary social insurance contributions in each year = Total monthly income after payment of social insurance contributions in each year x Indexation rate of monthly income after payment of social insurance contributions in the corresponding year

In that formula, the indexation rates of monthly income after payment of voluntary social insurance contributions in each year are stipulated in Clause 1, Article 3 of Circular 20/2023/TT-BLDTBXH, for example:

- Year 2008: 2.14 (increased by 0.07 compared to the Indexation rate of 2023);

- Year 2009: 2.0 (increased by 0.06 compared to the Indexation rate of 2023);

- Year 2010: 1.83 (increased by 0.06 compared to the Indexation rate of 2023);

- Year 2011: 1.54 (increased by 0.04 compared to the Indexation rate of 2023);

- Year 2012: 1.41 (increased by 0.04 compared to the Indexation rate of 2023);...

If employees have both compulsory social insurance contribution period and voluntary one, the monthly income after payment of voluntary social insurance contributions shall be indexed specified above;

While the monthly salary after payment of compulsory social insurance contributions shall be indexed according to the provisions in Article 10 of the Decree 115/2015/ND-CP and Article 2 of Circular 20/2023/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 for in Clause 4 Article 11 of the Decree 115/2015/ND-CP and Clause 4 Article 5 of Decree 134/2015/ND-CP.

More details can be found in Circular 20/2023/TT-BLDTBXH, taking effect on February 15, 2024. The provisions of Circular 20/2023/TT-BLDTBXH will apply from January 01, 2024

Circular 01/2023/TT-BLDTBXH will expire on February 15, 2024.

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