Proposal to remove the method of calculating social insurance benefits linked to the basic salary

Currently, the 2014 Law on Social Insurance stipulates many allowances associated with the basic salary such as: Convalescence and health recovery benefits; one-time allowance upon childbirth or adoption; funeral allowance; monthly death allowance...

Meanwhile, according to the direction of salary policy reform in Resolution No. 27-NQ/TW on salary policy reform for cadres, civil servants, public employees, armed forces and employees in enterprises, the new salary policy will abolish the current basic salary and salary coefficient, and build a basic salary with a specific amount in the new salary table.

It is expected that the salary reform roadmap will begin from July 1, 2024. Therefore, the draft revised Law on Social Insurance submitted to the National Assembly for comments at the 6th session has made adjustments to the regulations on subsidy levels associated with the basic salary.

According to the Ministry of Labor, War Invalids and Social Affairs, in order to not cause disruption in the level of benefits compared to current regulations and at the same time be consistent with the direction of salary policy reform in Resolution No. 27-NQ/TW, ensuring convenience in the implementation process, the draft revised Law on Social Insurance adjusts the allowances associated with the basic salary in the direction of stipulating them in a specific amount (equal to the current absolute level).

In the draft, the level of health recovery after illness for one day and health recovery after maternity leave for one day is 540,000 VND instead of 30% of the basic salary as currently regulated. The one-time allowance for giving birth or adopting a child for each child is regulated at 3,600,000 VND instead of 2 months of basic salary.

The draft also stipulates that the monthly death benefit for each relative is VND900,000 instead of 50% of the basic salary as currently regulated; in case the relative does not have a direct caregiver, the monthly death benefit is VND1,260,000 instead of 70% of the basic salary.

Regarding the adjustment of subsidy levels, the draft Law on Social Insurance proposes that it will be implemented when the Government adjusts pensions and social insurance benefits.