Reference level for calculating social insurance contributions and benefits
The Law on Social Insurance 2024, effective from July 1, 2025, stipulates that the reference level is the amount decided to be used to calculate the contribution level and enjoy some social insurance regimes.
In addition, the reference level will be adjusted based on the increase in the consumer price index, economic growth and in accordance with the State budget and the Social Insurance Fund.
According to Clause 13, Article 141 of the Law on Social Insurance 2024, if the basic salary has not been abolished, the reference level is equal to the basic salary. When the basic salary is abolished, the reference level is not lower than that basic salary.
From July 1, 2024, the basic salary applied is 2.34 million VND/month according to Decree 73/2024/ND-CP.
If the basic salary has not been abolished, the reference level is equal to the basic salary. (Illustration: Vietnam Social Insurance).
The salary used as the basis for compulsory social insurance contributions is stipulated in Article 31 of the Law on Social Insurance 2024 as follows:
For employees subject to the salary regime prescribed by the State, the salary used as the basis for social insurance payment is the monthly salary according to position, title, rank, grade, military rank and position allowances, seniority allowances beyond the framework, seniority allowances, and salary retention differential coefficients (if any).
For employees subject to the salary regime decided by the employer, the salary used as the basis for compulsory social insurance payment is the monthly salary, including the salary according to the job or position, salary allowances and other additional amounts agreed to be paid regularly and stably in each salary payment period.
In case an employee who stops working still receives a monthly salary equal to or higher than the lowest salary used as the basis for compulsory social insurance contributions, the salary received during the period of stop working shall be paid.
Lowest and highest contribution levels
The reference level is used as the basis for calculating social insurance benefits and contributions according to the Law on Social Insurance 2024. Accordingly, the salary used as the basis for compulsory social insurance contributions has a minimum level equal to the reference salary and a maximum level equal to 20 times the reference level.
The new Social Insurance Law stipulates the minimum and maximum salary for compulsory social insurance contributions (Photo: Hoang Lam).
Vietnamese employees are allowed to choose their salary as the basis for social insurance payment, but the lowest is equal to the reference level and the highest is 20 times the reference level, including:
Employees working abroad under contract, except for international treaties of which Vietnam is a member, which have other provisions; spouses who do not receive salaries from the State budget and are sent on a term-term business trip with members of Vietnamese representative agencies abroad are entitled to a living allowance; business owners;
Enterprise managers, controllers, representatives of State capital or enterprise capital; members of the Board of Directors, General Directors, Directors, members of the Supervisory Board, controllers and other elected management positions of cooperatives and cooperative unions do not receive salaries.
In which, social insurance must be paid according to the selected salary as the basis for payment after at least 12 months before the salary can be re-selected as the basis for social insurance payment.
In addition, the income used as the basis for voluntary social insurance contributions is at least equal to the poverty line for rural areas and at most 20 times the reference level.
Source: https://dantri.com.vn/an-sinh/muc-tham-chieu-dong-bao-hiem-xa-hoi-theo-luat-moi-20240805120212905.htm
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