Salary paid for social insurance in 2024: Latest instructions and regulations

Salary paid for social insurance in 2024, there will be important adjustments, affecting the rights and obligations of workers and businesses. Understanding the new regulations not only helps you better understand social insurance premiums but also ensures optimal benefits for yourself and your organization. This information will assist you in planning your finances and protecting your rights effectively.

Subjects participating in compulsory social insurance

Workers

Pursuant to Clauses 1 and 2, Article 2 of the Law on Social Insurance 2014, employees in the following cases are required to participate in social insurance:

1. Workers are Vietnamese citizens

• People working under a labor contract with an indefinite term or a fixed term from 3 months to less than 12 months.
• People working under labor contracts with a term from 1 full month to less than 3 months.
• Officials, civil servants and public employees.
• Defense workers, police workers, people working in cipher organizations.
• Officers, professional soldiers, non-commissioned officers, military soldiers, and police serving for a limited period of time.
• People working abroad under contracts specified in the Vietnamese labor law.
• Business managers and cooperative executives receive salaries.
• People who work part-time in communes, wards, and towns.

2. The employee is a Foreign Citizen

Employees who are foreign citizens participate in mandatory social insurance when meeting the following conditions:

• Have a work permit or practice certificate or practice license issued by a competent Vietnamese agency.
• Have an indefinite-term labor contract or a definite-term labor contract of 1 year or more with an employer in Vietnam.
• Not falling into the cases specified in Clause 2, Article 2 of Decree 143/2018/ND-CP.

Employer

According to the provisions of Clause 3, Article 2 of the Law on Social Insurance 2014, all agencies, units, organizations and individuals hiring or using labor under labor contracts, including:

• State agencies, public service units, people’s armed units.
• Political organizations, socio-political organizations, and other social organizations.
• Enterprises, cooperatives, individual business households, cooperative groups, and individual employers.

What is the maximum monthly salary for compulsory insurance from July 1, 2024?

According to the provisions of Article 89 of the Law on Social Insurance 2014, the monthly salary for compulsory social insurance payment is determined as follows:

• For employees with a salary regime prescribed by the State, the monthly salary used to calculate social insurance includes salary according to rank, grade, and military rank, along with position allowances and allowances. excess seniority and seniority allowance (if any).
• For those working part-time in communes, wards, and towns, the monthly salary paid for social insurance will be the base salary.
• For employees whose salary is prescribed by the employer, monthly salary paid for social insurance includes salary and salary allowances according to the provisions of labor law.
• In case the monthly salary specified above is higher than 20 times the base salary, the monthly salary paid for social insurance will be limited to 20 times the base salary.

Therefore, the maximum monthly salary paid for compulsory social insurance will not exceed 20 times the base salary.

Pursuant to Article 3 of Decree 73/2024/ND-CP, the base salary from July 1, 2024 is 2,340,000 VND/month. Therefore, the maximum monthly salary for compulsory social insurance from July 1, 2024 will be 46,800,000 VND/month.

How to calculate salary paid for social insurance from July 1, 2024

Pursuant to Article 89 of the Law on Social Insurance 2014, Article 6, Clause 1, Article 15 and Clause 1, Article 18 of the Procedure promulgated together with Decision 595/QD-BHXH in 2017, the calculation of the salary paid for social insurance in 2024 is based on the monthly salary is the basis for paying compulsory social insurance (compulsory social insurance).

Specifically, the formula for calculating the employee’s salary for social insurance payment is determined by the monthly salary for compulsory social insurance multiplied by the percentage of compulsory social insurance payment.

In particular, the monthly salary for compulsory social insurance is the salary, salary allowances and other supplements according to the provisions of labor law.

Social insurance consulting services for employees and businesses

At Long Phan, we provide professional social insurance consulting services, helping you understand and comply with regulations effectively. Our services specifically will be:

• Consulting on cases of compulsory social insurance participation;
• Consulting on social insurance payment rates for employees and employers;
• Instructions for implementing social insurance registration procedures;
• Consulting on social insurance regimes;
• Consulting on support policies from the State on social insurance;
• Support checking and reviewing social insurance documents for employees and employers;
• Consulting and guidance on handling problems related to social insurance.

We have informed you about the salary paid for social insurance in 2024 to help you understand your responsibilities and rights in participating in social insurance. With a team of experienced experts, Long Phan provides effective and professional social insurance consulting services. Please contact us via hotline 0906735386 for detailed and quick advice!