The salary for social insurance contribution must not be lower than the regional minimum wage
One of the issues that many workers are concerned about is the salary for social insurance contributions. So how much is the salary for social insurance contributions that must not be lower than the regional minimum wage? Follow the article below by S4B Vietnam for more details.
1. Can the salary for compulsory social insurance contribution be lower than the regional minimum wage?
According to Clause 2, Article 6 of Decision 595/QD-BHXH in 2017, the monthly salary for compulsory social insurance contribution prescribed for employees decided by the unit must not be lower than the regional minimum wage at the time of contribution for employees doing the simplest job or position under normal working conditions:
- Employees doing jobs or positions requiring trained or apprenticed workers (including workers trained by the enterprise itself) must be at least 7% higher than the regional minimum wage;
- Employees doing jobs or positions with arduous, toxic or dangerous working conditions must be at least 5% higher;
Jobs or positions with particularly arduous, toxic, or dangerous working conditions must be at least 7% higher than the salary of jobs or positions with equivalent complexity, working under normal working conditions.
Thus, the salary for compulsory social insurance contributions for employees must not be lower than the regional minimum wage as prescribed.
2. Regulations on monthly salary for compulsory social insurance contributions
Regulations on monthly salary for compulsory social insurance contributions according to Article 89 of the Law on Social Insurance 2014 are as follows:
– For employees subject to the salary regime prescribed by the State, the monthly salary for social insurance contributions is the salary according to the salary scale, level, military rank, and position allowances, seniority allowances beyond the framework, and seniority allowances (if any).
For employees specified in Point i, Clause 1, Article 2 of the Law on Social Insurance 2014, the monthly salary for social insurance contributions is the basic salary.
– For employees paying social insurance according to the salary regime decided by the employer, the monthly salary for social insurance payment is the salary and salary allowances as prescribed by the law on labor.
From January 1, 2018 onwards, the monthly salary for social insurance payment is the salary, salary allowances and other supplements as prescribed by the law on labor.
– In case the monthly salary prescribed in Clause 1 and Clause 2, Article 89 of the Law on Social Insurance 2014 is 20 times higher than the basic salary, the monthly salary for social insurance payment is equal to 20 times the basic salary.
New Minimum Basic Salary for Social Insurance
3. Regulations on minimum wages
Regulations on minimum wages according to Article 91 of the 2019 Labor Code are as follows:
- Minimum wages are the lowest wages paid to employees doing the simplest jobs under normal working conditions to ensure the minimum living standards of employees and their families, in accordance with socio-economic development conditions.
- Minimum wages are established by region, fixed by month and hour.
- Minimum wages are adjusted based on the minimum living standards of employees and their families; the correlation between minimum wages and market wages; consumer price index, economic growth rate; labor supply and demand; employment and unemployment; labor productivity; and the ability of enterprises to pay.
4. Contribution levels and payment methods of employees participating in compulsory social insurance
Contribution levels and payment methods of employees participating in compulsory social insurance according to Article 85 of the Law on Social Insurance 2014 are as follows:
– Employees specified in points a, b, c, d, đ and h, Clause 1, Article 2 of the Law on Social Insurance 2014, monthly pay 8% of their monthly salary to the pension and death fund.
Employees specified in point i, Clause 1, Article 2 of the Law on Social Insurance 2014, monthly pay 8% of their basic salary to the pension and death fund.
– For employees specified in Point g, Clause 1, Article 2 of the Law on Social Insurance 2014, the contribution level and payment method are prescribed as follows:
+ The monthly contribution level to the pension and death fund is equal to 22% of the monthly salary for social insurance of the employee before going to work abroad, for employees who have participated in compulsory social insurance;
Equal to 22% of 02 times the basic salary for employees who have not participated in compulsory social insurance or have participated in compulsory social insurance but have received one-time social insurance;
The above content is our answer and advice for customers of S4B Vietnam. If you have any questions about the salary for social insurance contribution, please send them to Email service@s4b.com.vn
>>>Read more: Compulsory insurances administration Vietnam law 2025
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