Vietnam: Monthly salary serving as the basis for compulsory social insurance contribution from 2021

From January 01 2021, monthly salary serving as the basis for social insurance contribution is salary and allowances and other additional payments prescribed in Point c, b1 and c1 Clause 5 Article 3 Circular No. 10/2020/TT-BLĐTBXH, particularly as following:

(1) Job- or position-based salary: 

- State the salary paid based on the performance time of the job or position in the pay scale or payroll developed by the employer in Article 93 of the Labor Code.

- State the piece work pay or fixed wage for an employee who receives piece work pay or fixed wage. 

(2) Allowances to compensate factors such as working conditions, job complexity, employee’s life and employment attraction that the base salary agreed under the employment contract fails to take into account or sufficiently take into account.

(3) Additional payments with specific amounts in conjunction with the base salary agreed under the employment contract and to be paid regularly in every pay period.

Pay special attention to incomes that do not include compulsory social insurance contributions:

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

- Bonuses mentioned in Article 104 of the Labor Code, initiative bonuses;

- Mid-shift meal allowance;

- Vehicle, cell phone, travel, lodging, daycare, children raising allowances;

- Allowances for the employee with relatives who are dead or get married, employee’s birthday, allowances for the employee suffering financial hardship upon an occupational accident or disease;

- Other allowances: Additional amounts for which a specific amount of money cannot be determined together with the salary rate agreed in the labor contract, paid regularly or irregularly in each pay period associated with the working process and performance results of the employee.

Circular No. 06/2021/TT-BLĐTBXH takes effect from September 01 2021 and rejects Clause 1 Article 15, Clause 1 and 2 Article 18 of the Circular No. 59/2015/TT-BLĐTBXH.

Bao Ngoc

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