Adjustments to insurance premiums for employees

1. The rate for compulsory social insurance, health insurance, accident insurance, occupational accident and occupational disease insurance

On 11/11/2022, The National Assembly passed the Resolution on the state budget estimate for 2023. Consequently, the basic salary will be increased to VND 18 million per month (an increase of 20.8% from the current basic salary). According to Clause 3, Article 89 of the Law on Social Insurance 2014, the monthly salary contributed to social insurance is equal to 20 times the basic salary. Therefore, from 01/7/2023, The maximum monthly salary for compulsory social insurance contribution is VND 36 million.

Additionally, based on Article 3 of Notice 2651/TB-BHXH issued by the Ho Chi Minh City Social Security Office, it is stipulated: From 01/7/2023, the maximum rate for compulsory social insurance, health insurance, accident insurance, occupational accident and occupational disease insurance is VND 36 million. The maximum accident insurance contribution is equal to 20 times the minimum wage in the area:

1. Area 1 is VND 93.600.000/month.
2. Area 2 is VND 83.200.000/month.

When the government adjusts the contribution rates and proportion for health insurance, the adjustment of the basic salary, participants and the state budget do not have to make additional payments or be refunded for the difference due to the adjustment of the contribution rates for health insurance, the basic salary for the remaining time that the participants have paid health insurance.

The Social Security Office will automatically adjust the maximum salary for compulsory social insurance, health insurance, occupational accident insurance, and occupational disease insurance for participants who have correctly declared their salaries and salary supplements in their labor contracts. The business does not have to submit documents. In case the business has not correctly declared the salaries and salary supplements in the contract, it is requested to prepare the documents to adjust the salary for compulsory social insurance, health insurance, occupational accident insurance, and occupational disease insurance.

2. Voluntary social insurance premium rates

Based on Article 4 of Notice 2651/TB-BHXH The monthly income on which the voluntary social insurance premiums are based shall be selected by the participants, but must be at least equal to the poverty threshold in rural areas of VND 1,500,000 and must not exceed VND 36,000,000 equal to 20 times the basic salary.

Support rates of voluntary social insurance premium shall be calculated by percentage (%) of the monthly social insurance premiums by the poverty threshold in rural areas for a maximum period of 10 years. Specific support shall be as follows:

1. For poor households (30%): 1,500,000 x 22% x 30% = VND 99,000/month.
2. For households living just above the poverty line (25%): 1,500,000 x 22% x 25% = VND 82,500/month.
3. For other participants (10%): 1,500,000 x 22% x 10% = VND 33,000/month.

3. Adjustment of pension, social insurance allowance and monthly allowance levels

Based on Article 2.1 of Circular No. 06/2023/TT-BLDTBXH, from July 1, 2023, the pension, social insurance allowance and monthly allowance levels for people who are who are officials, public servants, workers, public employees and employees, etc., shall be adjusted as follows:

a. The pension, social insurance allowance and monthly allowance levels will increase by 12.5% compared to those of June 2013 for people specified in Clause 1, Article 1 of this Circular that have already been adjusted under the Government’s Decree No. 108/2021/ND CP of December 7, 2021 on the adjustment of pension, social insurance allowance and monthly allowance levels. Specifically as follows:

b. The pension, social insurance allowance and monthly allowance levels will increase by 20.8% compared to those of June 2013 for people specified in Clause 1, Article 1 of this Circular that have not been adjusted under the Government’s Decree No. 108/2021/ND-CP of December 7, 2021 on the adjustment of pension, social insurance allowance and monthly allowance levels. Specifically as follows:

Based on Article 2.2 of Circular No. 06/2023/TT-BLDTBXH, from July 1, 2023, the pension, social insurance allowance and monthly allowance levels for people specified in Clause 2, Article 1 of this Circular that are adjusted under Clause 1 of this Article shall be adjusted as follows:

i. For people who receive a pension, social insurance allowance or monthly allowance amount of under VND 2,700,000 /month:

ii. For people who receive a pension, social insurance allowance and monthly allowance amount of between VND 2,700,000 /month and under VND 3,000,000/month:

Download the legal update as a PDF here.

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