Increase social insurance contributions in enterprises from July 1, 2025?

The Ministry of Labor, War Invalids and Social Affairs proposes to regulate the salary as the basis for compulsory social insurance contributions for employees subject to the salary regime decided by the employer. Based on the salary regulations of the labor law (monthly salary), to determine the amounts (salary, salary allowances, other supplements) subject to compulsory social insurance contributions.

In which, the salary according to the job or position is calculated according to the time (by month) of the job, or the position according to the salary scale, salary table built by the employer, according to the provisions of Article 93 of the Labor Code agreed upon in the labor contract.

Salary allowances to compensate for factors related to working conditions, complexity of work, living conditions, and labor attraction that are not taken into account or not fully taken into account in the salary level, are agreed upon in the labor contract; not including salary allowances that depend on or fluctuate according to labor productivity, work process, and quality of work performance of the employee.

Other additional amounts are determined by a specific amount of money together with the salary, agreed upon in the labor contract and paid regularly and stably in each pay period; not including other additional amounts that depend on or fluctuate according to the employee's labor productivity, work process and quality of work performance.

Part-time workers at commune level including social insurance allowance

Regarding the salary used as the basis for compulsory social insurance contributions for part-time workers at the commune, village, and residential group levels, the draft stipulates that it is the monthly allowance they receive.

In case the monthly allowance of a part-time worker at the commune, village or residential group level is lower than the lowest salary used as the basis for compulsory social insurance payment, the salary used as the basis for compulsory social insurance payment shall be equal to the lowest salary used as the basis for compulsory social insurance payment.

According to current regulations, the salary used as the basis for social insurance contributions for part-time workers at the commune level is the basic salary.

However, currently, part-time workers at the commune, village and residential group levels are entitled to an allowance allocated by the central state budget to localities, at a level equal to 1.5 - 2 times the basic salary.

Therefore, in the draft Decree, the Ministry of Labor, War Invalids and Social Affairs proposes to stipulate that the salary used as the basis for compulsory social insurance contributions for part-time workers at the commune, village and residential group levels is the monthly allowance.

Increase social insurance contribution for old age pension enough to live on

An expert in the field of labor and wages said that increasing the social insurance contribution rate of employees when calculating the salary based on job or position, salary allowances and other supplements will increase the salary used as the basis for social insurance contribution.

The Social Insurance Law 2024 is aiming for social insurance contributions to be calculated over the entire process, so when the salary used as the basis for social insurance contributions is high, the employee will receive a higher pension when they are old. This is an important condition for employees to stabilize their lives when they retire, contributing to ensuring social security.

“Vietnam is considered to have one of the highest pension rates in the world, with 75% of the salary used as the basis for social insurance contributions. However, because the salary used as the basis for social insurance contributions is too low, the benefits are not high. Increasing the social insurance contribution based on actual income will significantly improve the benefits for workers when they retire,” said the labor and salary expert.

However, he also noted that increasing the contribution level needs to be calculated specifically so as not to become a burden for businesses. Because the majority of domestic businesses are small and medium-sized enterprises, if the contribution level is too high, businesses will not have the savings to expand production scale, increase the application of science and technology...