Available in Vietnam: Indexation rate of monthly salary and income after payment of social insurance contributions in 2021

According to Article 2 of Vietnam's Circular 23/2020/TT-BLDTBXH, persons subject to the indexation of salary after payment of social insurance contributions include:

• Employees who are subject to the pay scheme under the State’s regulations, started participating in social insurance programs from January 01, 2016 and 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 01, 2021 to December 31, 2021.

• Employees who pay social insurance contributions according to the pay scheme decided by employers, receive retirement pensions or one-off 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 01, 2021 to December 31, 2021.

Monthly salaries after payment of social insurance contributions (SIC) of persons specified in Clause 1 Article 1 hereof shall be indexed as follows:

Indexed monthly salary after payment of SIC in each year =  Total monthly salary after payment of SĨC in each year x  Indexation rate of monthly salary after payment of SIC in the corresponding year

In that formula, the indexation rate of monthly salary after payment of social insurance contributions in the corresponding year is as follows: 2021 is 1.00; 2020 is 1.00; 2019 is 1.03; 2018 is 1.06; 2017 is 1.10; 2016 is 1.14;...

More details can be found in Vietnam's Circular 23/2020/TT-BLDTBXH, effective from February 15, 2021, the provisions of this Circular apply from January 1, 2021.

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