On January 3, 2023, the Ministry of Labor, War Invalids and Social Affairs of Vietnam issued Circular 01/2023/TT-BLDTBXH stipulating the adjustment of salary and monthly income for which social insurance premiums have been paid of Vietnamese employees.
The subjects eligible for adjustment of monthly salary on which social insurance premiums are based in Vietnam according to Circular 01/2023/TT-BLDTBXH include:
- Employees who are subject to the salary regime prescribed by the State start participating in social insurance from January 1, 2016 onward, enjoy lump-sum social insurance, or die with their next of kin entitled to a lump-sum survivorship allowance for the period from January 1, 2023 to December 31, 2023.
- Employees pay social insurance premiums according to the salary regime decided by the employer, enjoy pension, lump-sum allowance upon retirement, lump-sum social insurance or die with their next of kin entitled to a lump-sum survivorship allowance for the period from January 1, 2023 to December 31, 2023.
Adjustment of monthly salary for which social insurance has been paid
The monthly salary for which social insurance premiums have been paid is adjusted according to the formula specified in Clause 1, Article 2 of Circular 01/2023/TT-BLDTBXH:
Monthly salary on which social insurance premiums are based, after adjustment of each year = Total monthly salary on which social insurance premiums are based x Adjusted monthly salary for which social insurance premiums have been paid in the corresponding year
In which, the adjustment of the salary for which social insurance premiums have been paid for the corresponding year is made according to the table below:
| Year | Before 1995 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 |
| Level of adjustment | 5,26 | 4,46 | 4,22 | 4,09 | 3,80 | 3,64 | 3,70 | 3,71 | 3,57 | 3,46 | 3,21 | 2,96 | 2,76 | 2,55 | 2,07 |
| Year | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| Level of adjustment | 1,94 | 1,77 | 1,50 | 1,37 | 1,28 | 1,23 | 1,23 | 1,19 | 1,15 | 1,11 | 1,08 | 1,05 | 1,03 | 1,00 | 1,00 |
Adjustment of monthly income for which social insurance premiums
have been paid for participants of voluntary social insurance
The monthly income for which social insurance premiums have been paid for participants of voluntary social insurance shall be adjusted according to the following formula:
Monthly income for which voluntary social insurance premiums are based, after adjustment of each year = Total monthly income for which social insurance premiums are based in each year x Adjusted monthly income for which social insurance premiums have been paid in the corresponding year
Specifically, the adjustment of monthly income for which social insurance premiums have been paid for the respective year is made according to the table below:
| Year | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 |
| Level of adjustment | 2,07 | 1,94 | 1,77 | 1,50 | 1,37 | 1,28 | 1,23 | 1,23 |
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| Level of adjustment | 1,19 | 1,15 | 1,11 | 1,08 | 1,05 | 1,03 | 1,00 | 1,00 |
In particular, it should be noted that for employees who both have
participated in the compulsory social insurance system as an
employee and the voluntary social insurance, the monthly income for
which voluntary social insurance premiums have been paid is
adjusted according to the provisions of Clause 1, Article 3 of
Circular 01/2023/TT-BLDTBXH
Circular 01/2023/TT-BLDTBXH takes effect from February 20, 2023; The provisions of this Circular apply from January 1, 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
