Employee’s compensation amounts that are subject and not subject to the compulsory social insurance premium in Vietnam

Employee’s compensation amounts that are subject and not subject to the compulsory social insurance premium in Vietnam

Employee’s compensation amounts that are subject to the compulsory social insurance premium in Vietnam are guided in Clause 26, Article 1 of Circular 06/2021/TT-BLDTBXH.
-From January 1, 2021 onwards, the monthly emplyee’s compensation amounts that are subject to the compulsory social insurance premium are the salaries, salary based allowances and other compensation amounts  specified in point a, item b1 of  point b and item c1 of  point c Clause 5 Article 3 of Circular No. 10/2020/TT-BLDTBXH dated November 12, 2020 of the Ministry of Labor, War Invalids and Social Affairs.
- Monthly employee‘s compensation amounts that are not subject to the compulsory social insurance premium including other benefits and policies such as awards according to Article 104 of the Labor Code, invention awards; mid-shift meal; travel, communication, accommodation, childcare allowances; allowances when relatives of workers decease, relatives of workers get married, birthday of workers, allowances for workers facing difficulty as a result of occupational diseases and accidents, and other allowances and benefits specified separately under employment contracts according to Sub-point c2 Point c Clause 5 Article 3 of Circular No. 10/2020/TT-BLDTBXH.

1. Employee compensation amounts that are subject to the compulsory social insurance premium in Vietnam.

The monthly employee’s compensation amounts that are subject to the social insurance premium are the salaries, salary based allowances and other compensation amounts  specified in point a, item b1 of  point b and item c1 of  point c Clause 5 Article 3 of Circular No. 10/2020/TT-BLDTBXH:
a) Salary according to the job or title: write the salary calculated according to the time of the job or title according to the salary scale, the salary table developed by the employer according to the provisions of Article 93 of the Labor Code; for employees who receive salary by product or package salary, write the salary calculated by time to determine the product unit price or package salary;
b) Salary allowance as agreed by the two parties as follows: Salary allowances to compensate for factors such as working conditions, job complexity, living conditions, and level of labor attraction that the salary agreed upon in the labor contract has not been taken into account. or incomplete calculation;
c) Other additional amounts as agreed upon by the two parties as follows: Additional amounts for which a specific amount can be determined together with the salary agreed upon in the labor contract and paid regularly in each pay period;

2. Employee’s compensation amounts that are not  subject to the compulsory social insurance premium in Vietnam

Employee compensation amounts that are not subject to the compulsory social insurance premium in Vietnam:
- Awards according to Article 104 of the Labor Code;
- Invention awards;
- Mid-shift meal;
- Compensatios for gas, communication, accommodation, travel, childcare;
- Allowances when relatives of workers decease, relatives of workers get married, birthday of workers, allowances for workers facing difficulty as a result of occupational diseases and accidents,
- Other allowances and benefits specified separately under employment contracts according to Sub-point c2 Point c Clause 5 Article 3 of Circular No. 10/2020/TT-BLDTBXH:  The additional compenstains whose specific amount cannot be determined along with the salary agreed in the labor contract, regularly or irregularly pay in each pay period associated with the working process and job performance results of the employee.

3. Compulsory Social Insurance Premium in Vietnam.

The compulsory social insurance premium is calculated by multiplying (x) the social insurance premium rate with the monthly compensations amounts that are subject to the compulsory social insurance premium.
The social insurance premium rate for employees participating in compulsory social insurance is 10.5%, the rate for employers in compulsory social insurance is 21.5%. Total compulsory social insurance premium is 32%.

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