Social insurance contribution salary can be equal to 50% of the highest regional minimum wage.

The Government's submission on the revised Law on Social Insurance (SI) proposes to amend the salary used as the basis for SI contributions. The Ministry of Labor, War Invalids and Social Affairs said that the regulation on the basis for SI contributions of the business sector is at least equal to about 70% of the total salary and other income to overcome the situation of evasion and underpayment, affecting the ability to balance the SI Fund and the rights of employees.

The salary survey 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.

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 provides general regulations that are not clear enough, there are still difficulties in the process of developing detailed regulations and the process of implementing them in practice.

In the draft Law on Social Insurance (amended), the salary used as the basis for compulsory social insurance contributions is supplemented, the lowest being half of the highest regional minimum monthly wage announced by the Government, the highest being 8 times the highest regional minimum monthly wage announced by the Government.

According to Deputy Minister of Labor, War Invalids and Social Affairs Nguyen Ba Hoan, this is the basis for determining the basis for social insurance contributions for those who do not receive salaries (business owners, business managers, cooperative managers who do not receive salaries...). This is the basis for determining the responsibility to participate for part-time workers.

The regulation on salary as the basis for compulsory social insurance contributions for the non-state sector inherits the current regulation. However, the new regulation is more specific, in the direction that the salary 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 shall provide detailed regulations to specifically determine the amounts that must be paid and not be paid for compulsory social insurance; the determination of monthly salary as the basis for social insurance payment in cases of agreement to pay wages by hour, day, week and by product or contract.

Former Deputy Minister of Labor, War Invalids and Social Affairs Pham Minh Huan said that the Social Insurance Law should stipulate contributions based on 70-80% of the employee's income at a stable level.

However, the percentage of social insurance contributions by employees and businesses must remain at the current level of 25%. Only then can we ensure that the pensions of employees are improved.