Instructions on insurance premiums based on new basic salary

On June 26, Vietnam Social Security issued a document guiding local social security agencies, the Ministry of National Defense's social security agencies, and the People's Public Security to collect social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance according to the new basic salary level from July 1, 2023.

Accordingly, from July 1, 2023, the basic salary of VND 1,800,000/month will be applied as the basis for calculating the salary level for compulsory social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance for employees participating in compulsory social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance who are subject to the basic salary level of VND 1,800,000/month prescribed in Article 2 as the basis for calculating the salary and allowance levels used as the basis for payment prescribed in Clause 1 and Clause 2, Article 3 of Decree No. 24/2023/ND-CP.

People working abroad under contracts as prescribed in the Law on Vietnamese Workers Working Abroad Under Contracts and people enjoying spouse benefits at Vietnamese representative agencies abroad as prescribed in Point g, Clause 1, Article 2, Clause 4, Article 123 of the 2014 Law on Social Insurance participating in compulsory social insurance but before going to work abroad under contracts, or before enjoying spouse benefits at Vietnamese representative agencies abroad: Have participated in and paid compulsory social insurance according to the salary regime prescribed by the State; have not participated in compulsory social insurance or have participated in compulsory social insurance but have received one-time social insurance.

Full-time management officials, full-time Party Committee Secretaries, Deputy Party Committee Secretaries, full-time Trade Union Chairmen at single-member limited liability companies in which the State holds 100% of the charter capital, according to the salary coefficient specified in Appendix I issued together with Decree No. 52/2016/ND-CP dated June 13, 2016 of the Government regulating salaries, remunerations, and bonuses for managers of single-member limited liability companies in which the State holds 100% of the charter capital.

For voluntary social insurance participants: The monthly income level that voluntary social insurance participants choose to calculate the voluntary social insurance contribution level from July 1, 2023 is the highest of VND 36,000,000/month (VND 1,800,000/month x 20 times).

Subjects participating in health insurance only: Group whose health insurance is paid by the state budget: From July 1, 2023, the health insurance contribution level is calculated based on the basic salary of VND 1,800,000/month.

In case of being issued a health insurance card before July 1, 2023, from July 1, 2023, the Social Insurance agency will adjust the health insurance contribution level according to the basic salary of VND 1,800,000/month.

Groups receiving state budget support for health insurance premiums and groups participating in family health insurance: From July 1, 2023, health insurance premiums are calculated based on the basic salary of VND 1,800,000/month.

In case the subject has paid enough money into the health insurance fund according to the validity period of the health insurance card and is issued a health insurance card before July 1, 2023, both the health insurance participant and the state budget do not have to pay, and will receive additional support due to the increase in the basic salary for the period from July 1, 2023 for which the health insurance participant has paid health insurance.

Social insurance agencies of provinces and centrally run cities, Social insurance agencies of the Ministry of National Defense, and Social insurance agencies of the People's Public Security are responsible for notifying employers, health insurance participant management units, authorized collection organizations, voluntary social insurance participants, health insurance participants partially supported by the state budget, and family health insurance participants about the salary and income used as the basis for paying social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance.

Along with that, the Information Technology Center, Vietnam Social Security promptly adjusted and supplemented the collection management software to meet the management requirements and support operations according to new regulations.

Wisdom

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