Allowances Subject to Social Insurance Contributions Under the 2023 Labor Law

Social insurance is an important social protection system, providing benefits and protection for workers during their work and when they encounter difficulties with health, income or retirement.The 2023 Labor Law is an important law in Vietnam, clearly regulating social insurance payments and related allowances. Surely many people will wonder which amounts will be included in the social insurance payment regulations. Let’s find out with ADSMO about the allowances that must be paid for social insurance according to the updated 2023 Labor Law right away.

I. Allowances subject to social insurance under the 2023 Labor Law

According to Decision 595/QD-BHXH, allowances subject to social insurance include:

1. 1. Responsibility allowance: is an amount of support in addition to salary for employees who are both directly involved in production/professional work – and also undertake management work even though they do not hold a leadership position or do work that requires high responsibility but is not yet determined in the basic salary.
   2. Position and title allowance: salary for civil servants, administrative officials, people working in the armed forces and in enterprises who both do professional and technical work and hold leadership positions but only receive professional and technical salaries.
   3. Toxic, arduous, and hazardous allowance: For occupations with dangerous and toxic working conditions that are harmful to health, such as workers working in toxic and hazardous environments.
   4. Regional allowance: to compensate for workers, civil servants, and public employees working in areas with bad climates, remote areas, difficult travel and living conditions, and to contribute to stabilizing labor in areas with unfavorable natural geography.
   5. Seniority allowance: is an additional monthly salary allowance paid to employees who have worked for a long time with an agency or unit to encourage and create more motivation for employees to work more dedicatedly for the unit.
   6. Mobility allowance: is for those who do certain jobs or jobs that require frequent changes in residence or workplace, unstable living conditions with many difficulties, and the mobility of the job has not been determined in the salary level.
   7. Attraction allowance and similar allowances: can be understood as an allowance applied to cadres, civil servants, public employees, workers and salary earners in the armed forces (People’s Army, People’s Police and cryptography) working in areas with particularly difficult socio-economic conditions, where there is no infrastructure at the beginning, affecting the material and spiritual life of workers.

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II. How is the salary calculated after paying allowances subject to Social Insurance?

Based on the provisions of Clause 2, Article 30 of Circular 59/2015/TT-BLDTBXH detailing and guiding the implementation of a number of articles of the Law on Social Insurance on compulsory social insurance (hereinafter referred to as Circular 59/2015/TT-BLDTBXH), the monthly salary for social insurance payment includes:

Salary = Salary + Salary allowance + Other additional amounts

• Salary: Mandatory and minimum; In which:

• Specific salary allowances such as: Position and title allowances; Responsibility allowances; Allowances for heavy, toxic, dangerous work; Seniority allowances; Regional allowances; Mobility allowances; Attraction allowances and allowances of similar nature (Clause 1, Article 30 of Circular 59/2015/TT-BLDTBXH).
• Other additional amounts: These are amounts that are determined in a specific amount along with the agreed salary in the labor contract and are paid regularly in each pay period.

 Allowances subject to social insurance under the 2023 Labor Law play an important role in protecting the rights and lives of workers. Social insurance is an important system that ensures that workers enjoy benefits and protection when working and in difficult situations. Paying social insurance for these allowances ensures fairness and sustainability in the management and provision of social services. At the same time, the provisions of the Labor Law 2023 need to be properly implemented and complied with to protect the rights of workers and maintain balance in the social insurance system. Follow ADSMO to update more information and knowledge about salaries, social insurance and other employee benefits.

If you are a company or business, confused about updating new circulars and decrees to customize the payroll in accordance with the Law, try using the HRM Plus+ software of ADSMO with modules such as human resource information management, timekeeping management, salary calculation, recruitment management, approval of leave, business trips, diverse customization according to the requirements and characteristics of each business. Contact Hotline now: 0356.105.388  to receive advice from our team of experts.

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