Summary of allowances increased according to basic salary from July 1, 2023

From July 1, the basic salary will increase to 1.8 million VND/month. Therefore, many allowances for workers will also be adjusted to increase according to the basic salary.

Tổng hợp những khoản trợ cấp tăng theo lương cơ sở từ ngày 1/7/2023

Many allowances for workers will also be adjusted to increase according to the basic salary from July 1, 2023.

The Government issued Decree 24/2023/ND-CP dated May 14, 2023, stipulating the basic salary for cadres, civil servants, public employees and armed forces. From July 1, the basic salary will increase to 1.8 million VND/month. Therefore, many allowances for employees will also be adjusted to increase according to the basic salary.

Types of allowances increased according to basic salary from July 1, 2023

Minimum pension level

According to the 2014 Social Insurance Law, employees who have paid 20 years or more of compulsory social insurance will have their pension conditions and levels implemented according to the compulsory social insurance policy.

The lowest monthly pension of employees participating in compulsory social insurance who are eligible for pension according to the provisions of Article 54 and Article 55 of the Social Insurance Law 2014 is equal to the basic salary.

Thus, the lowest monthly pension for this group of subjects will increase to VND 1,800,000 from July 1, 2023, instead of VND 1.49 million as at present.

One-time allowance for childbirth

The one-time allowance for childbirth or adoption will also be adjusted when the basic salary increases.

Accordingly, the 2014 Social Insurance Law stipulates that female employees giving birth or employees adopting children under 6 months old are entitled to a one-time allowance for each child equal to 2 times the basic salary in the month the female employee gives birth or the month the employee adopts the child.

In case of giving birth but only the father participates in social insurance, the father will receive a one-time allowance equal to 2 times the basic salary in the month of birth for each child.

Thus, from July 1, 2023, the one-time subsidy for giving birth or adopting a child will be increased to VND 3.6 million, instead of VND 2.98 million as currently.

Postpartum care benefits

In addition, the level of care and health recovery after giving birth is also adjusted to increase.

The level of benefit for recuperation and health recovery after maternity leave per day is equal to 30% of the basic salary (Clause 3, Article 41 of the Social Insurance Law 2014) and will increase to VND 540,000 from July 1, 2023 (instead of VND 447,000).

Level of health care and recovery benefits after illness

According to Clause 3, Article 29 of the Social Insurance Law 2014, the level of health recovery and recuperation benefits after 1 day of illness is equal to 30% of the basic salary.

When the basic salary increases from July 1, 2023 to 1.8 million VND, the benefit for recuperation and health recovery after illness will increase to 540,000 VND (instead of the current 447,000 VND).

Level of allowance for loss of working capacity

- For one-time subsidy:

According to Article 46 of the 2014 Law on Social Insurance, employees with a reduced working capacity of 5% to 30% are entitled to a one-time allowance, and the allowance level is calculated based on the basic salary.

If the working capacity is reduced by 5%, the salary will be 5 times the basic salary, which is an increase of 9 million VND compared to the current 7.45 million VND.

After that, for every 1% decrease, you will receive an additional 0.5 times the basic salary (ie increasing to 900,000 VND instead of 745,000 VND).

- For monthly allowance:

Article 47 of the 2014 Law on Social Insurance stipulates that employees with a 31% or more reduction in working capacity are entitled to monthly benefits.

Accordingly, a 31% reduction in working capacity will result in a benefit equal to 30% of the basic salary, then for each additional 1% reduction, an additional 2% of the basic salary will result.

Thus, from July 1, 2023, for every 31% reduction in working capacity, the allowance is 540,000 VND (currently 447,000 VND), then for every additional 1% reduction, the allowance is 36,000 VND (currently 29,800 VND).

- Service allowance level:

For employees with a reduced working capacity of 81% or more, who are paralyzed by the spine or blind in both eyes or have amputated or paraplegic limbs or are mentally ill, in addition to the monthly allowance, they will also receive a service allowance equal to the basic salary (ie from July 1, 2023, it will increase to 1.8 million VND compared to 1.49 million VND).

Death benefits due to work accidents and occupational diseases

According to Article 51 of the 2014 Law on Social Insurance, if a worker dies due to a work accident or occupational disease while working or dies during the first treatment period due to a work accident or occupational disease, his or her relatives will receive a one-time allowance equal to 36 times the basic salary, from July 1, 2023, equivalent to 64.8 million VND (compared to the current allowance of 53.64 million VND).

Convalescence and health recovery allowance

According to Clause 2, Article 52 of the 2014 Law on Social Insurance, the level of allowance for recuperation and health recovery after treatment of injury or illness per day is equal to 25% of the basic salary if recuperation and health recovery are at home:

The benefit level from July 1, 2023 will increase to 450,000 VND instead of 372,500 VND as present; equal to 40% of the basic salary, if resting and recovering health at a centralized facility, the benefit level will increase to 720,000 VND instead of 596,000 VND.

Funeral benefits

In case an employee who is eligible for funeral benefits dies, the person in charge of the funeral will receive a one-time funeral benefit equal to 10 times the basic salary.

Accordingly, the funeral allowance from July 1, 2023 will increase to 18 million VND (compared to the current 14.9 million VND).

Monthly death benefit

The monthly death benefit for relatives when a worker dies is also adjusted to increase. The 2014 Social Insurance Law stipulates that the monthly death benefit for each relative is equal to 50% of the basic salary, so it will increase from VND 745,000 to VND 900,000;

In case the relative has no direct caregiver, the monthly allowance is equal to 70% of the basic salary, increased from VND 1.043 million to VND 1.26 million.

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