15 employee incomes not included in social insurance contributions 2024

What are the incomes that are not included in compulsory social insurance contributions? Units and employees should pay attention to be able to calculate accurate social insurance contributions and balance funds accordingly. Below are shares of income not included in compulsory social insurance payments according to the provisions of law 2024. SMART SOLUTION FOR BUSINESS COMPANY LIMITED (S4B Vietnam) hopes to bring you useful information.

1. Income calculated for compulsory social insurance payment according to regulations

Social insurance (social insurance) is a guarantee to replace or partially compensate employees’ income when their income is reduced or lost due to illness, maternity, labor accidents, occupational diseases, or aging out. labor or death, based on contributions to the social insurance fund. Compulsory social insurance is a type of social insurance organized by the State that employees and employers must participate in.

If voluntary social insurance allows you to choose the income to pay social insurance, then compulsory social insurance has its own regulations on income to pay social insurance.

Specifically, the monthly salary paid for social insurance is the salary, salary allowances and other supplements (stipulated in Clause 2, Article 17, Decree 115/2015/ND-CP and point a, item b1, point b and item c1 Point c Clause 5 Article 3 Circular 10/2020/TT-BLDTBXH) includes:

  • Salary according to job or title: salary is paid according to the labor contract.
  • Salary allowances as agreed by both parties: Salary allowances to compensate for factors such as working conditions, complexity of work, living conditions, level of labor attraction that the agreed salary level in the labor contract has not been taken into account or is not fully accounted for.
  • Other additional amounts as agreed by both parties are as follows: Additional amounts determine the specific amount of money along with the salary agreed in the labor contract and are paid regularly in each pay period.

 

Compulsory and non-compulsory income for compulsory social insurance during the year is one of the insurance policies that many workers are interested in.

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2. Incomes not included in compulsory social insurance contributions

Pursuant to the provisions of Decision 595/QD-BHXH in 2017, the monthly salary as the basis for paying compulsory social insurance is also the monthly salary as the basis for paying health insurance and unemployment insurance for employees.Therefore, Employees’ incomes that are not counted for paying compulsory social insurance will also not be counted for paying health insurance and unemployment insurance.

15 incomes that are not calculated for compulsory social insurance

Accordingly, according to the provisions of Article 89 of the Law on Social Insurance 2014, Article 17 of Decree 115/2015/ND-CP, Article 30 of Circular 59/2015/TT-BLDTBXH and Clause 2, Article 6 of Decision 595/QD- Social insurance in 2017, the employees’ incomes that are not included in paying compulsory social insurance, health insurance, and unemployment insurance in 2021 include:

(1) Bonus according to the provisions of the Labor Code;

(2) Initiative bonus;

(3) Mid-shift meal allowance;

(4) Fuel allowance;

(5) Telephone support amount;

(6) Travel allowance;

(7) Housing allowance;

(8) Child care allowance;

(9) Child support amount;

(10) Support when employees have relatives who die;

(11) Support when employees have relatives getting married;

(12) Support for employees’ birthdays;

(13) Subsidies when workers encounter difficult circumstances due to occupational accidents;

(14) Subsidies when workers encounter difficult circumstances due to occupational diseases;

(15) Other supports and allowances are recorded in a separate section in the labor contract.

3. Incomes included in compulsory social insurance contributions

In addition, for income calculated for compulsory social insurance payment in 2024, Clause 2, Article 89 of the Law on Social Insurance 2014 stipulates that the monthly salary for compulsory social insurance payment is the salary, salary allowances and additional payments.

Specifically, income calculated for compulsory social insurance in 2024 includes the following 10 items: Salary; Position and title allowances; Responsibility allowances; Allowances for heavy, toxic and dangerous work; Seniority allowances; Regional allowance; Mobility allowance; Attractive allowance; Allowances of similar nature; Additional payments determine a specific amount of money along with the salary agreed upon in the labor contract and are paid regularly in each pay period.

Determining incomes that are not included in compulsory social insurance payments will help units and employees easily calculate the monthly social insurance payment rate of employees, and be more proactive in planning the allocation of their funds.

S4B Vietnam

  • Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

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