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Salary paid for social insurance in Vietnam 2023

When participating in compulsory social insurance, the salary paid for social insurance in 2023 is an issue that many workers and businesses are interested in and read about. Therefore, this article will present more clearly the salary paid for social insurance in Vietnam 2023 in accordance with the provisions of the law 2023.

How to determine the monthly salary for calculating compulsory social insurance

Pursuant to Clause 2, Article 5 of the 2014 Law on Social Insurance, it is stipulated that the compulsory social insurance payment rate is calculated on the basis of the employee’s monthly salary.

According to Clause 2, Article 89 of the Law on Social Insurance 2014, the monthly salary for compulsory insurance payment includes:

  • Wage;
  • Allowance;
  • Other additional amounts according to the provisions of the labor law.

The minimum monthly salary for which compulsory social insurance premiums are based in the year 2023

According to the provisions of Point 2.6, Clause 2, Article 6 of Decision 595/QD-BHXH dated April 14, 2017, the minimum salary for compulsory social insurance for employees is as follows:

  • For employees doing the simplest job or title under normal working conditions, the monthly salary for compulsory social insurance payment is not lower than the regional minimum wage at the time of payment.
  • For workers with jobs or titles that require trained or vocational workers (including workers trained by the enterprise themselves) must be at least 7% higher than the regional minimum wage;
  • For employees working in jobs or positions with heavy, hazardous, or dangerous working conditions, the rate must be at least 5% higher; Jobs or titles with particularly heavy, toxic, or dangerous working conditions must be at least 7% higher than the salary of jobs or titles of equivalent complexity, working in normal working conditions.

Monthly salary paid for social insurance in Vietnam 2023

According to the provisions of Decree 38/2022, in 2023, the monthly regional minimum wage is determined as follows:

Region Minimum wage applicable in 2023
I 4,680,000 VND/month
II 4,160,000 VND/month
III 3,640,000 VND/month
IV 3,250,000 VND/month

In fact, many businesses are paying the minimum monthly compulsory social insurance, so the adjustment of the regional minimum wage applied in 2023 will lead to an increase in the compulsory social insurance payment.

The maximum monthly salary on which compulsory social insurance premiums are based in 2023

The maximum monthly salary for compulsory social insurance payment according to the provisions of Clause 3, Article 6 of Decision 595/QD-BHXH dated April 14, 2017, will be 20 months of base salary.

According to Resolution 69/2022/QH15 approved the base salary from July 1, 2023 is VND 1,800,000/month. Accordingly, the base salary in 2023 is divided into two periods with two levels of application as follows:

Time Wage Legal basis
January 1, 2023 – June 30, 2023 1.49 million VND/month Resolution 70/2018/QH14

Decree 38/2019/ND-CP

July 1, 2023 – December 31, 2023 1.8 million VND/month Resolution 69/2022/QH15

Thus, there are two stages of applying the maximum compulsory social insurance premium:

  • The maximum monthly salary for which compulsory social insurance is paid from January 1, 2023, to June 30, 2023, is: 20 x 1.49 = 29.8 million VND/month.
  • The maximum monthly salary for which compulsory social insurance is paid from July 1, 2023, to December 31, 2023, is 20 x 1.8 = VND 36 million/month.

Social insurance, health insurance, and unemployment insurance payment rates and levels in 2023

For Vietnamese workers

Employers Workers
Social insurance Unemployment insurance Health insurance Social insurance Unemployment insurance Health insurance
HT OD-TS Labor accidents and occupational diseases HT OD-TS Labor accidents and occupational diseases
14% 3% 0.5% 1% 3% 8% 1% 1.5%
20.5% 10.5%
Total 32%

In 2022, eligible businesses and units will receive support for unemployment insurance contributions (0% contribution to the unemployment insurance fund). However, by 2023, businesses will no longer be supported. Therefore, the total contribution level increased from 31% to 32%.

For foreign workers

Employers Workers
Social insurance Unemployment insurance Health insurance Social insurance Unemployment insurance Health insurance
HT OD-TS Labor accidents and occupational diseases HT OD-TS Labor accidents and occupational diseases
14 3% 0.5% 3% 8 1.5%
20.5% 9.5%
Total 30%

Withdraw one-time social insurance when leaving for foreign employees in 2023

According to Clause 2, Article 17 of Decree 143/2018/ND-CP, the one-time social insurance regime for foreign workers will be applied in 2023.

Therefore, based on Clause 6, Article 9 of Decree 143/2018/ND-CP, foreign workers participating in social insurance will be entitled to one-time social insurance upon request if they fall into one of the following cases:

  • Having reached retirement age but not yet having paid social insurance contributions for less than 20 years.
  • Suffering from life-threatening diseases such as Cancer, polio, cirrhosis, ascites, leprosy, severe tuberculosis, and HIV infection that has turned into AIDS and other diseases according to regulations of the Ministry of Health.
  • Eligible for pension but do not continue to reside in Vietnam.
  • The labor contract is terminated or the work permit, practice certificate, or practice license expires without being renewed.

Therefore, if after terminating the labor contract there is a need to withdraw one-time social insurance, the foreign worker can apply for benefits according to regulations.

Time to pay social insurance to retire in 2023

Basis for determining the time limit for social insurance payment to enjoy the highest pension

In 2023, male workers need to pay social insurance for 35 years and female workers need to pay 30 years to receive the maximum pension. According to Article 56 and Article 74 of the Social Insurance Law, in 2023, the number of years of social insurance payment to receive a pension for male workers will change.

Time limit to pay social insurance to enjoy the highest pension in 2023 for male employees

  • For male workers, to enjoy a minimum pension of 45%, they need to pay 20 years of social insurance, an increase of one year compared to the old regulation of 19 years.
  • After that, for each year of social insurance payment, the employee’s pension is calculated by 2%, and the maximum level is 75%.
  • Thus, in 2023, to enjoy a maximum pension of 75%, male workers need to pay in full for 35 years.

The deadline to pay social insurance to enjoy the highest pension in 2023 for female workers

  • For female employees, the monthly pension is calculated at 45% of the average monthly salary on which social insurance premiums are based and corresponds to 15 years of payment of social insurance.
  • Similar to male employees, then for each year of paying social insurance contributions, the female employee’s pension is calculated by 2% and the maximum level is 75%. To enjoy the maximum pension of 75%, female employees need to pay 30 years of social insurance.
  • Thus, in 2023, male employees need to pay the full 35 years of social insurance contributions and female employees need to pay the full 30 years to receive the maximum pension.

Retirement age from 2023

From 2023, the retirement age of employees working in normal conditions will change as follows:

  • Male workers: From 60 years and 09 months (Increase 03 months compared to 2022).
  • Female workers: From 56 years old (4 months increase compared to 2022).

Voluntary social insurance payment rates in 2023

From July 1, 2023, the base salary is expected to be 1.8 million VND/month (previously from January 1, 2023, to June 30, 2023, it was VND 1.49 million/month), according to which the premium rate of social insurance The maximum voluntary capacity in 2023 is equal to 22% of 20 times the base salary and is divided into 2 timelines as follows:

  • The maximum voluntary social insurance payment until June 30, 2023, is 22% x (20 x 1,490,000) = 6,556,000 VND/person/month.
  • The maximum voluntary social insurance payment from July 1, 2023, is 22% x (20 x 1,800,000) = 7,920,000 VND/person/month.

If you have any questions regarding the salary paid for social insurance in Vietnam 2023 and using the social insurance declaration service, please contact Viet An Law Firm for detailed support!

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