Social insurance plays an important role in protecting and supporting employees during work and when facing difficulties with health, income or retirement. The 2023 Labor Law is the basic law on social insurance contributions in Vietnam, clearly stipulating the salary for social insurance contributions and related provisions. In this article, ADSMO will learn with you about the salary for social insurance contributions according to the 2023 Law, the importance of social insurance contributions and points to note.
The Importance of Social Insurance
Social insurance is extremely important in protecting the rights and lives of workers. Paying social insurance helps ensure that workers will enjoy benefits when they lose their jobs, have health problems, or reach retirement age. Social insurance also provides financial support for workers and their families in difficult situations such as accidents, illness, or death.
Social Insurance Contribution Level According to Law 2023
Clause 26, Article 1, Circular 06/2021/TT-BLDTBXH stipulates that from January 1, 2021 onwards, the monthly salary for social insurance contribution is the salary, salary allowances and other supplements specified in Point a, Section b 1 Point b and Section c1 Point c Clause 5 Article 3 of Circular No. 10/2020/TT – BLDTBXH dated November 12, 2020 of the Ministry of Labor – Invalids and Social Affairs.
So the monthly salary for social insurance contribution Compulsory social insurance includes the following 3 items:
- Salary according to job or title;
- Salary allowance;
- Other additional amounts as prescribed by labor law.
The monthly salary for social insurance contribution must not be lower than the regional minimum wage prescribed in Article 3 of the Decree 38/2022/ND-CP.
Region I = 4,680,000 VND
Region II = 4,160,000 VND
Region III = 3,640,000 VND
Region IV = 3,250,000 VND
In each socio-economic region, there is a regional minimum wage determined by the local government. competent authority. From this regional minimum wage, employees and employers will calculate social insurance contributions according to the prescribed rate.
The maximum salary for social insurance and health insurance is equal to 20 months of the basic salary.
The maximum salary for unemployment insurance is equal to 20 months of the regional minimum salary.
Basic salary from July 2019 to June 30, 2023: 1,490,000 VND
Basic salary from 07/01/2023: 1,800,000 VND.
So the maximum salary for social insurance and health insurance is: 1,800,000×20 = 36,000,000 VND
The maximum salary for unemployment insurance in region I is: 4,680,000×20 = 93,600,000 VND
Social Insurance Contribution Rate
Social insurance contribution rate is the percentage of the basic salary that employees and employers must contribute to the social insurance fund. According to Article 85, Article 86 of the Law on Social Insurance 2014 and instructions in Decree No. 58/2020/ND-CP, Decision 595/QD-BHXH, the social insurance contribution rate is calculated based on the employee’s monthly salary.
The social insurance contribution rate is prescribed by the Ministry of Labor, War Invalids and Social Affairs. Normally, the social insurance contribution rate will be divided into two parts: one part paid by the employee and one part paid by the employer.
| Employer | Employee | ||||||||
| BHXH | BHTN | BHYT | BHXH | UI | Health insurance | ||||
| HT | Đ-TS | Occupational accidents and occupational diseases | HT | Đ – TS | Occupational accidents and occupational diseases | ||||
| 14% | 3% | 0.5% | 1% | 3% | 8% | – | – | 1% | 1.5% |
| 21.5% | 10.5% | ||||||||
| Total 32% | |||||||||
- Social insurance : Social insurance
- HT: Retirement (HT)
- ÔĐ-TS: Sickness, maternity
- TNLĐ-BNN: Work accidents, occupational diseases
- BHYT: Health insurance
- BHTN: Unemployment Insurance
Points to Note About Social Insurance Contribution Salary Levels
Here are some points to note about the salary level for social insurance contributionsaccording to the 2023 Law:
- Employees and employers mustpay social insurance fully and on time according to the provisions of the 2023 Labor Law. Paying social insurance not only protects the rights of employees but also helps ensure the stability and sustainability of the social insurance system.
- The salary level for social insurance contribution may change over time and according to the socio-economic situation of the country. Employees and employers need to update the latest information on salary levels and social insurance contribution rates to comply with regulations.
- The calculation of the salary level for social insurance contribution must be done accurately and fairly. Employees and employers should strengthen the monitoring, checking and verification of information to avoid errors in calculating and paying social insurance.
The social insurance contribution rate according to the 2023 Labor Law plays an important role in protecting the rights and lives of workers. Social insurance is an important system that ensures workers enjoy benefits and protection when working and in difficult situations. Paying social insurance in accordance with the State’s regulations is the responsibility and obligation of both workers and businesses. Follow ADSMO to update more information and knowledge about salary, social insurance and other employee benefits.
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