Social insurance salary increased by more than 30%, reaching 5.7 million VND/month

Insurance premium is 86% of income

According to the report on the results of 6 years of implementing the Law on Social Insurance 2014 in the period of 2016-2021, the Ministry of Labor, War Invalids and Social Affairs assessed that the collection of social insurance depends largely on the monthly salary as the basis for insurance payment.

In 2016, the average salary for compulsory social insurance was more than 4.2 million VND/month. By 2021, the salary for insurance had increased to nearly 5.7 million VND/month, an increase of more than 30%.

Thus, the average salary used as the basis for compulsory social insurance contributions for employees in 2021 is equal to 86% of the average income of salaried workers and equal to 76% of Vietnam's GDP per capita in 2021.

Explaining the above increase, the Ministry of Labor, War Invalids and Social Affairs said that the salary base for social insurance contributions increased because the 2014 Law on Social Insurance has a new regulation that the salary for social insurance contributions must be the salary and salary allowances according to the law.

The insurance salary in 2021 is nearly 5.7 million VND/month (Photo: Son Nguyen).

However, after 2016, the salary used as the basis for contribution increased insignificantly, only increasing according to the annual adjustment of the regional minimum wage increase.

In particular, the average salary used as the basis for compulsory social insurance contributions for employees at state-owned enterprises also increases annually.

The average salary used as the basis for compulsory insurance contributions for employees in 2021 is 6.5 million VND/month, an increase of 54.76% compared to 2016.

The above level is equal to 115% of the average salary used as the basis for compulsory social insurance contributions for employees in general.

Besides, the salary for insurance contribution in foreign invested enterprises is also on an upward trend.

6.1 million VND/month is the salary used as the basis for compulsory insurance contributions for employees in 2021, an increase of 23.29% compared to 2016.

In addition, the average salary used as the basis for compulsory social insurance contributions for employees in non-state enterprises also increased annually. The above level was equal to 89.63% of the average salary used as the basis for compulsory social insurance contributions for employees in general.

Thus, the highest average salary used as the basis for social insurance contributions for employees belongs to state-owned enterprises, followed by foreign-invested enterprises, and finally non-state-owned enterprises.

Amending regulations on salary level for insurance contribution

The latest draft of the Social Insurance Law (amended) proposes to base social insurance contributions on the regional minimum wage, also to be consistent with the orientation that when implementing salary reform, there will no longer be a basic salary.

Specifically, the draft Law supplements the salary used as the basis for compulsory social insurance payment, with the lowest being half of the highest regional minimum monthly wage announced by the Government; the highest being eight times the highest regional minimum monthly wage announced by the Government.

The employee's insurance premium will be based on the regional minimum wage (Photo: Son Nguyen).

This is the basis for determining the basis for social insurance contributions for those who do not receive a salary (business owners; business managers, cooperative managers who do not receive a salary...); and is also the basis for determining the responsibility to participate for part-time workers.

For the non-state sector (employees pay social insurance according to the salary regime decided by the employer), the salary used as the basis for compulsory social insurance payment basically inherits current regulations.

However, it will be more specifically regulated that the salary used as the basis for social insurance payment is the monthly salary, including salary, salary allowances, and other supplements, paid regularly and stably in each pay period.

On that basis, the Government shall provide detailed regulations to specifically determine the amounts that must and must not be paid for compulsory social insurance; the determination of monthly salary as the basis for social insurance payment in cases of agreement to pay wages by hour, day, week, and by product or contract.

Source link: https://dantri.com.vn/lao-dong-viec-lam/tien-luong-dong-bao-hiem-xa-hoi-tang-hon-30-cham-muc-57-trieu-dongthang-20230822105233499.htm