Are monthly bonuses subject to social insurance contributions?
Ms. Ngo Thi Hai Ch. works at a company, and her contract states a basic salary of 4 million VND per month for insurance contributions, plus an incentive bonus of 2 million VND. She receives this bonus every month.
Ms. Chien asked whether, from January 1, 2018, this incentive bonus would be included in the amount used for insurance contributions.
Regarding this matter, according toPoints 2.1, 2.2, 2.2, Clause 2, Article 6 of Decision 595/QD-BHXH dated April 14, 2017, of the Director General of Vietnam Social Security stipulate:
From January 1, 2016 to December 31, 2017, the monthly salary for compulsory social insurance contributions was the salary and salary allowances as stipulated in Clause 1 and Point a, Clause 2, Article 4 of Circular No. 47/2015/TT-BLDTBXH dated November 16, 2015 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of some provisions on labor contracts, labor discipline, and material responsibility of Decree No. 05/2015/ND-CP dated January 12, 2015 of the Government detailing and guiding the implementation of some contents of the Labor Code.
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| Illustration. Archival photo. |
Salary allowances as stipulated in Point a, Clause 2, Article 4 of Circular No. 47/2015/TT-BLDTBXH are allowances intended to compensate for factors related to working conditions, job complexity, living conditions, and the level of labor attraction that have not been taken into account or have not been fully taken into account in the agreed salary in the labor contract, such as allowances for position/title; responsibility allowance; allowance for arduous, hazardous, and dangerous work; seniority allowance; regional allowance; mobility allowance; attraction allowance; and other allowances of a similar nature.
From January 1, 2018 onwards, the monthly salary used for calculating mandatory social insurance contributions is the salary and salary allowances as stipulated in Point 2.1 of this Clause and other supplementary amounts as stipulated in Point a, Clause 3, Article 4 of Circular No. 47/2015/TT-BLDTBXH.
The monthly salary used for calculating mandatory social insurance contributions does not include other benefits and allowances.Such as bonuses as stipulated in Article 103 of the Labor Code, innovation bonuses; meal allowances; allowances for fuel, telephone, travel, housing, childcare, and raising young children; support when an employee's relative dies, when an employee's relative gets married, or on the employee's birthday; allowances for employees facing difficult circumstances due to work accidents or occupational diseases; and other support and allowances recorded as separate items in the labor contract according to Clause 11, Article 4 of Decree No. 05/2015/ND-CP.