Reference rates for social insurance contributions under the new law.

From July 1, 2024, the applicable base salary is 2.34 million VND/month according to Decree 73/2024/ND-CP.

The salary used as the basis for mandatory social insurance contributions is stipulated in Article 31 of the 2024 Social Insurance Law as follows:

For employees subject to the salary regime regulated by the State, the salary used as the basis for social insurance contributions is the monthly salary according to position, title, rank, grade, military rank, and any allowances for position, seniority allowance exceeding the standard rate, professional seniority allowance, and retained salary differential coefficient (if any).

For employees whose salaries are determined by the employer, the salary used as the basis for mandatory social insurance contributions is the monthly salary, including the salary based on the job or position, salary allowances, and other supplementary payments agreed upon and paid regularly and stably in each pay period.

If an employee stops working but continues to receive a monthly salary equal to or higher than the lowest salary used as the basis for mandatory social insurance contributions, then contributions will be based on the salary received during the period of work stoppage.

Lowest and highest contribution rates

The reference level is used as the basis for calculating social insurance benefits and contributions according to the Social Insurance Law 2024. Accordingly, the minimum salary used as the basis for mandatory social insurance contributions is equal to the reference salary, and the maximum is 20 times the reference salary.

Vietnamese citizens who are employees can choose their salary as the basis for social insurance contributions, but the minimum salary must be equal to the reference level, and the maximum salary must be 20 times the reference level.

Workers going to work abroad under contract, except in international treaties to which Vietnam is a signatory where there are different provisions; spouses who do not receive salaries from the State budget and are assigned to work abroad for a fixed term with members of Vietnamese representative agencies; and business owners.

Business managers, controllers, representatives of state or enterprise capital; members of the Board of Directors, General Director, Director, members of the Supervisory Board, controllers and other elected management positions of cooperatives and cooperative unions do not receive salaries.

Specifically, social insurance contributions must be paid based on the chosen base salary for at least 12 months before a new base salary can be selected.

In addition, the income used as the basis for voluntary social insurance contributions must be at least equal to the poverty line for rural areas and at most 20 times the reference level.