From January 1, 2016: Social insurance contribution level will be closer to workers' income.

According to the Social Insurance Law 2014, from January 1, 2016, the social insurance contribution level of employees will be closer to the income level.

Currently, employers are paying social insurance for employees according to the amount stated in the labor contract, while this salary is lower than the actual payment to employees. Because in addition to salary, employers also add many allowances such as diligence, experience... for employees. The total amount from allowances is sometimes higher than the amount used as the basis for paying social insurance. However, these additional amounts are not included in social insurance.

Social insurance premium is closer to income.

To limit this situation, the Social Insurance Law 2014, effective from January 1, 2016, stipulates that from 2016 to 2017: The basis for calculating social insurance is based on salary and allowances. From 2018 onwards, the basis for calculating social insurance will include salary, allowances and other supplements.

Mr. Tran Hai Nam, Deputy Director of the Department of Social Insurance (Ministry of Labor, War Invalids and Social Affairs) said that in the Draft Decree detailing a number of articles on compulsory social insurance being submitted by the Ministry of Labor, War Invalids and Social Affairs to the Government, it is clearly stated that: Salaries and salary allowances stated in labor contracts from January 1, 2016 will be calculated for social insurance. By 2018, the Department of Labor, War Invalids and Social Affairs will develop a coordination mechanism between Tax and Social Insurance to ensure the correct and sufficient level of social insurance contributions.

Mr. Tran Hai Nam said: “Regarding allowances, the Government currently has guiding decrees in the Labor Code and the Ministry of Labor, War Invalids and Social Affairs has also issued a circular guiding wages, which defines what is a wage, which are salary allowances and other supplements. Which of those salary allowances is used as the basis for calculating contributions? This will be in the direction of stable allowances. From January 1, 2018, the salary paid by enterprises for employees must be based on the total salary costs of the enterprise such as salary, salary allowances and other supplements”./.

According to VOV.VN