Proposal to pay social insurance according to regional minimum wage

According to the representative of the Ministry of Labor, War Invalids and Social Affairs (MOLISA), the practical basis for this proposal is: The average salary used as the basis for compulsory social insurance contributions in 2022 for employees is 5.73 million VND/month, accounting for about 75% of the average income of salaried employees.

Workers at Hoa Tho Hoi An Garment Joint Stock Company

The current Social Insurance Law only stipulates the highest salary/income as the basis for social insurance contributions, but does not stipulate the lowest salary as the basis for compulsory social insurance contributions. Although the current regulations on the basis for compulsory social insurance contributions are relatively complete in the documents detailing the law; however, because the Social Insurance Law stipulates in general terms and is not clear enough, there are still difficulties in the process of developing detailed regulations and the process of implementing them in practice.

Therefore, the draft Law on Social Insurance (amended) supplements the salary used as the basis for compulsory social insurance payment to be at least half of the highest regional minimum monthly salary announced by the Government (the highest is 8 times the highest regional minimum monthly salary announced by the Government); this is the basis for regulating the basis for social insurance payment for those who do not receive a salary (business owners; business managers, cooperative managers who do not receive a salary; etc.). This is also the basis for determining the responsibility to participate for part-time workers.

Regarding the salary used as the basis for compulsory social insurance contributions for the non-state sector, it basically inherits the current regulations, and provides more specific regulations in the direction that the salary used as the basis for social insurance contributions is the monthly salary, including salary, salary allowances, and other supplements, paid regularly and stably in each salary payment period. On that basis, the Government provides detailed regulations to specifically determine the amounts that must and are not required to pay compulsory social insurance; determining the monthly salary used as the basis for social insurance contributions in cases of agreements to pay wages by the hour, day, week, and by product or contract.

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

The draft Law on Social Insurance amends the allowances associated with the basic salary level in the direction of specifying them in specific amounts (equal to the current absolute level), and at the same time stipulates that these levels will be adjusted when the Government adjusts pensions and social insurance allowances.

According to Tin Tuc Newspaper