From 2018, what income is not subject to social insurance contributions?

From January 1, 2018, in addition to the monthly salary for social insurance contributions, many additional income items of employees will be added as the basis for calculating compulsory social insurance contributions. However, the monthly salary for compulsory social insurance contributions will not include other benefits and welfare.

In addition to the income items subject to compulsory social insurance contributions according to current regulations, from January 1, 2018, many additional income items of employees will be added as the basis for calculating compulsory social insurance contributions.

This is a notable content stipulated in Clause 2, Article 30 of Circular 59/2015/TT-BLDTBXH detailing and guiding the implementation of a number of articles of the 2014 Social Insurance Law on compulsory social insurance.

Specifically, other additional provisions are stipulated in Point a, Clause 3, Article 4 of Circular 47/2015/TT-BLDTBXH guiding the implementation of labor contracts, labor discipline, and material responsibility of Decree 05/2015/ND-CP.

Accordingly, the monthly salary for social insurance payment is the salary, salary allowances and other supplements as prescribed by labor law stated in the labor contract. The supplements are determined by specific amounts along with the salary agreed in the labor contract and paid regularly in each salary payment period.

From January 1, 2018, many additional income items of employees will be added as the basis for calculating compulsory social insurance contributions.

However, the monthly salary subject to compulsory social insurance will not include other benefits and allowances, such as bonuses as prescribed in Article 103 of the Labor Code.

According to Vietnam Social Security, the lowest monthly salary for compulsory social insurance is equal to the regional minimum wage; the highest is 20 times the basic salary as prescribed by the Government.

As for those receiving salaries regulated by the State, from January 1, 2018, the salary used as the basis for compulsory social insurance contributions is still the salary according to the salary scale, level, military rank and position allowances, seniority allowances exceeding the framework, seniority allowances according to the basic salary level prescribed for each period.

The monthly salary for social insurance contribution for a person doing the simplest job or position in normal working conditions must not be lower than the regional minimum wage; a job or position requiring trained or apprenticed workers (including workers trained by the enterprise itself) must be at least 7% higher than the regional minimum wage; a job or position with arduous, toxic, or dangerous working conditions must be at least 5% higher; a job or position with especially arduous, toxic, or dangerous working conditions must be at least 7% higher than the salary of a job or position of equivalent complexity working in normal working conditions.

According to VNN