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VietnameseSOCIAL INSURANCE PREMIUMS: 05 INFORMATION YOU NEED TO KNOW
The salary paid for social insurance directly determines the level of employees’ entitlement to social insurance benefits such as unemployment, maternity benefits; sicknesses; pension and one-time social insurance benefits. However, many workers still wonder about this salary.
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- Is it that the salary paid for social insurance would be the actual salary we receive?
The employee is paid by the employer to the salary of 05 million VND/month; 06 million VND/ month; 10 million VND / month … wonder if that salary is also his salary paid for social insurance.
The truth is not like that. The salary paid for social insurance is not the salary that employees receive monthly, in all cases. This is a salary decided by the employer, must not be lower than the minimum regional wage and not 20 times higher than the base salary.
The minimum regional wage in 2021 will be: Region 1: 4,420,000 VND/month; Region 2: 3,920,000 VND/month; Region 3: 3,430,000 VND/month; Region 4: 3,070,000 VND/month.
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- Can I pay social insurance on the entire salary?
There are a certain number of companies, especially foreign ones, in order to retain employees, they are ready to pay social insurance at the actual salary of the employee.
Example: Mr. A’s salary is 20 million VND/month and the company also pays the social insurance for him at 20 million VND/month.
There is nothing wrong with that. And of course, the higher the salary paid for social insurance, the higher the level of entitlement to benefits. However, despite paying social insurance for employees with the full salary, this premium rate is still controlled as “not higher than 20 times the base salary” (Clause 3, Article 6 of Decision 595 / QD-BHXH).
The current base salary is 1.49 million VND/month. Therefore, the maximum salary for social insurance is 29.8 million VND/month.
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- Is it that the salary paid for social insurance not only includes salary?
Clause 1, Article 30 of Circular 59/2015 / TT-BLDTBXH stipulates: Monthly salary paid for social insurance for the employees who pay social insurance is following to the salary system decided by the employer, including salary, allowances (responsibility allowance, seniority allowance, attraction allowance, position allowance…); and other additional income.
Thus, the salary paid for social insurance not only includes salary but also includes allowances and other additional income.
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- Is it that the salary paid for social insurance would be the basic salary?
Currently, according to current documents, the concept of “basic salary” does not exist. This is a common term for many workers. Which, many employees believe that the basic salary is the salary paid for social insurance.
However, as analyzed in section 3., the salary paid for social insurance not only includes salary but also includes allowances and other supplements.
Meanwhile, the basic salary is understood as the lowest salary that the employee receives, excluding allowances, bonuses, benefits and other additional income.
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- Which is the salary that I pay for voluntary social insurance?
Many employees wonder about the salary paid for voluntary social insurance. In fact, the voluntary social insurance payment is not based on salary, but more precisely based on the income of the participants.
According to Clause 1, Article 10 of Decision 595/QD-BHXH, the monthly voluntary social insurance premium of the participant is 22% of income level.
In which, the income level is selected by the participants, but it must be at least equal to the poverty line of rural areas (700,000 VND/person/month) and not over 20 times the base salary (equivalent to 29.8 million VND/person/month)
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