Will build reference salary to replace base salary

According to the report of the National Assembly Standing Committee, the draft Law has been received, explained and revised with the following major contents:

Replace "base salary" with "reference level"

The Government has proposed to add regulations on the concept of "reference level" instead of "basic salary" to serve as a basis and supplement regulations on content in the draft Law.

Since this is a new issue, the National Assembly Standing Committee recommends that the Government continue to pay attention to assessing the impact, and at the same time study and develop a number of specific principles to determine the reference level to be implemented from July 1, 2024, when salary reform is implemented, as well as when the Law takes effect.

This unit also requested a full review and supplementation of transitional provisions in legal policies related to the "basic salary" which will be abolished from July 1, 2024 when implementing salary reform.

From there, new regulations will be issued in accordance with the authority, order and procedures prescribed by the Law on Promulgation of Legal Documents.

One-time social insurance

The draft Law stipulates the conditions for receiving one-time social insurance benefits for people who are not old enough to receive pension, do not continue to pay but have not paid for 20 years and have a request to receive one-time social insurance benefits with two options.

Option 1: Workers are divided into two groups.

Group 1 continues to apply the conditions for receiving one-time social insurance benefits as prescribed in Resolution No. 93 of the National Assembly on implementing the policy of receiving one-time social insurance benefits for employees.

That is, employees participating in social insurance before the Law takes effect (expected July 1, 2025), after 12 months are not subject to compulsory social insurance, and do not participate in voluntary social insurance.

Compared to current regulations, the draft Law adds a number of benefits, that is, if the employee chooses to reserve and not receive one-time social insurance, he/she can choose to receive monthly benefits from his/her own reserved portion during the period from retirement age to before the age of receiving social pension benefits (75 years old) and other additional benefits during this period (the State budget pays for health insurance and if the employee dies, relatives will receive funeral benefits....

In case the employee does not receive the monthly allowance, he/she is still entitled to receive a one-time social insurance payment but will lose the opportunity to receive the monthly allowance and the additional benefits mentioned above.

Group 2, employees who start participating in social insurance from the effective date of the Law onwards, will not be subject to this provision on conditions for receiving one-time social insurance benefits.

Option 2:Employees are partially resolved, but not more than 50% of the total time contributed to the pension and death fund. The remaining time of social insurance payment is reserved for employees to continue participating and enjoying social insurance regimes.

On electronic transactions in the field of social insurance

The Draft Law has added principles-based regulations on electronic transactions in the organization of social insurance implementation, specifically: Supplementing clauses 10 and 11 of Article 4 with the content explaining the terms Electronic transactions in the field of social insurance and unemployment insurance; Supplementing the regulation "From January 1, 2026, social insurance numbers will be issued electronically to social insurance participants. Paper social insurance books will only be issued upon request by employees" in clause 2, Article 24; Supplementing Article 25 with regulations on electronic transactions in the field of social insurance and Supplementing clause 1, Article 17 with regulations on the responsibility of social insurance agencies in organizing the assessment of the level of satisfaction of organizations and individuals with the implementation of policies and laws on social insurance, unemployment insurance, and health insurance.

Business owners participate in compulsory social insurance

The Government has proposed a regulation that "business owners of business households subject to business registration" are subjects participating in compulsory social insurance.

The Standing Committee of the National Assembly has directed the adjustment in the direction of only regulating the subjects participating in compulsory social insurance for "business owners of business households with business registration".

In addition, the National Assembly Standing Committee has directed to revise the transitional provisions of the draft Law in the direction that "for business owners who have paid compulsory social insurance before the effective date of this Law, the settlement of social insurance regimes shall be prescribed by the Government".

At the same time, it is recommended that the Government promptly issue documents to promptly resolve the regime for these subjects while the Law has not yet taken effect to ensure the rights of business owners who have participated in compulsory social insurance before the effective date of this Law.