Monthly salary on which compulsory social insurance premiums are based in Vietnam

Monthly salary on which compulsory social insurance premiums are based in Vietnam (Internet image)

1. Monthly salary on which compulsory social insurance premiums are based in Vietnam

1.1. Monthly salary on which compulsory social insurance premiums are based for employees subject to the State-prescribed salary benefits in Vietnam

For employees subject to the State-prescribed salary benefits, their monthly salary on which social insurance premiums are based is their rank- or grade-based salary plus position-based, extra-rank working seniority-based or occupation-based seniority allowance (if any).

For part-time staffs in communes, wards and townships, their monthly salary on which social insurance premiums are based is the statutory pay rate.

(Clause 1, Article 89 of Law on Social Insurance 2014)

1.2. Monthly salary on which compulsory social insurance premiums are based employees who pay social insurance premiums according to the employer-decided salary benefits in Vietnam

Monthly salary serving as the basis for social insurance contribution shall be salaries, salary-based allowances and other payments under Point a, Sub-point b1 Point b and Sub-point c1 Point c Clause 5 Article 3 of Circular 10/2020/TT-BLDTBXH.

Monthly salary serving as the basis for compulsory social insurance contribution does not include other benefits and policies such as

- Awards according to Article 104 of the Labor Code, invention awards; mid-shift meal; travel, communication, accommodation, childcare allowances;

- Allowances when relatives of workers decease, relatives of workers get married, birthday of workers;

- Allowances for workers facing difficulty as a result of occupational diseases and accidents, and other allowances and benefits specified separately under employment contracts according to Sub-point c2 Point c Clause 5 Article 3 of Circular 10/2020/TT-BLDTBXH.

(Clause 2, Article 89 of Law on Social Insurance 2014; Clauses 2 and 3, Article 30 of Circular 59/2015/TT-BLDTBXH, as amended by Clause 26, Article 1 of Circular 06/2021/TT-BLDTBXH)

2. Subjects who must participate in compulsory social insurance in Vietnam

Subjects who must participate in compulsory social insurance include:

* Group of employees:

(1) Employees being Vietnamese citizens shall be covered by compulsory social insurance, including:

- Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full 3 months and under 12 months, including also labor contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labor law;

- Persons working under labor contracts with a term of between full 1 month and under 3 months;

- Cadres, civil servants and public employees;

- Defense workers, public security workers and persons doing other jobs in cipher organizations;

- Officers and professional army men of the people's army; officers and professional non-commissioned officers and officers and technical non- commissioned officers of the people's public security; and persons engaged in cipher work and enjoying salaries like army men;

- Non-commissioned officers and soldiers of the people’s army; non- commissioned officers and soldiers on definite-term service in the people’s public security; army, public security and cipher cadets who are entitled to cost- of-living allowance;

- Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;

- Salaried managers of enterprises and cooperatives;

- Part-time staffs in communes, wards and townships.

(2) Employees who are foreign citizens working in Vietnam with work permits or practice certificates or practice licences granted by competent Vietnamese agencies shall be covered by compulsory social insurance under the Government’s regulations.

* Employer group:

 Employers covered by compulsory social insurance include

- State agencies, non-business units and people's armed forces units;

- Political organizations, socio-political organizations, socio-politico-professional organizations, socio-professional organizations and other social organizations;

- Foreign agencies and organizations, and international organizations operating in the Vietnamese territory;

- Enterprises, cooperatives, individual business households, cooperative groups, and other organizations and individuals that hire or employ employees under labor contracts.

(Article 2 of the Law on Social Insurance 2014)

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