Circular 59_2015_TT-BLDTBXH provides detailed regulations on some provisions regarding compulsory social insurance. guide Decree 115_2015_ND-CP provides detailed regulations on some provisions regarding compulsory social insurance. enforce Social Insurance Law 2014 58_2014_QH13 as follows:
The monthly salary used for calculating social insurance contributions for employees whose salaries are determined by the employer is regulated as follows:
1. From January 1, 2016 to December 31, 2017, the monthly salary for social insurance contributions is the salary and salary allowances as stipulated in Clause 1 and Point a, Clause 2, Article 4 of... Circular No. 47/2015/TT-BLDTBXH Circular dated November 16, 2015, of the Ministry of Labour, Invalids and Social Affairs guiding the implementation of some provisions on labor contracts, labor discipline, and material liability of workers. Decree No. 05/2015/ND-CP The Government's Circular dated January 12, 2015, provides detailed regulations and guidance on the implementation of certain provisions of the Labor Code (hereinafter referred to as Circular No. 47/2015/TT-BLDTBXH).
According to point a, clause 2, Article 4 of Circular No. 47/2015/TT-BLDTBXH, salary allowances 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.
2. From January 1, 2018 onwards, the monthly salary for social insurance contributions is the salary and salary allowances as stipulated in Clause 1 of this Article and other supplementary amounts as stipulated in Point a, Clause 3, Article 4 of Circular No. 47/2015/TT-BLDTBXH.
3. The monthly salary subject to 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 Government Decree No. 05/2015/ND-CP dated January 12, 2015, detailing and guiding the implementation of some provisions of the Labor Code.
4. Monthly salary subject to social insurance contributions for business managers receiving salaries as stipulated in point d, clause 1, Article 2 of Decree No. 115/2015/ND-CP Salaries are determined by the enterprise, except for full-time management officials in state-owned single-member limited liability companies.
Thus: Timonthly salary subject to social insurance contributionsFrom January 1st, 2018 onwards include:
+ Clause 1: Basic salary
Salary: Record the salary based on the time spent on the job or position according to the salary scale or salary table established by the employer in accordance with labor laws and agreed upon by both parties. For employees paid on a piecework or contract basis, record the salary based on time spent to determine the unit price of the product or the contract wage.
+ Clause 2: Salary allowance
According to point a, clause 2, Article 4 of Circular No. 47/2015/TT-BLDTBXH, salary allowances 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.
+ Clause 3: Additional charges determine a specific amount of money.
Point a, Clause 3, Article 4 of Circular No. 47/2015/TT-BLDTBXH stipulates: Additional payments with a specific amount determined together with the agreed salary in the labor contract and paid regularly in each pay period.
Monthly salary for compulsory social insurance does not include:
Clause 4: Additional payments with no specific amount determined.
Point b, Clause 3, Article 4 of Circular No. 47/2015/TT-BLDTBXH stipulates: Additional payments whose specific amount cannot be determined, along with the agreed salary in the labor contract, paid regularly or irregularly in each pay period, are linked to the employee's work process and performance results.
Clause 5: Other benefits and allowances
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 difficulties due to work accidents or occupational diseases; and other support and allowances recorded as separate items in the labor contract. "Other matters related to the implementation of the agreement between the two parties".
Besides: During periods when employees cease work in accordance with labor laws but continue to receive wages, both the employee and the employer shall contribute to mandatory social insurance based on the wages the employee receives during the period of work stoppage.
Management and inspection procedures of the labor, wage, and insurance management agency.
The state social insurance agency will carry out the following inspection steps depending on the specific case:
Prior to January 1, 2018, the following four rates applied:
Level 1: Encouragement and reminders:
Urge businesses to fully participate in social insurance and pay social insurance contributions on time.
Level 2: Inspection and Auditing:
Inspection of compliance with social insurance laws.
Level 3: Collection of arrears and penalties:
After inspection, if violations are found, the following actions will be taken: recovery of outstanding payments, late payment penalties, and administrative fines.
- Back payment: The basis for back payment is the discrepancy between the employee record <> employee declaration <> social insurance contribution deductions.
- Tax collection based on discrepancies between the financial statements submitted to the tax authorities and the declared salaries submitted to the Social Insurance agency.
- Late payment penalty: Interest will be charged on the underdeclared amount from the date of underdeclaration to the date of collection. Administrative penalties will be applied according to the Social Insurance Law.
Level 4: Taking legal action:
Depending on the severity of the violation, the Social Insurance agency may sue the business in administrative court to recover social insurance contributions and compel payment of fines in accordance with regulations.
From January 1st, 2018, level 5 may be applied as follows:
Level 5: Transfer the case to Criminal Prosecution.
Solutions for complying with social insurance laws from January 1, 2018.
Businesses need to properly implement legal regulations regarding labor, wages, and social insurance. Below are the steps to take to ensure compliance with social insurance laws applicable from 2018.
1. Develop an appropriate salary policy.
2. Develop appropriate salary scales and pay tables.
3. Signing employment contracts in accordance with regulations.
4. Timekeeping, payroll calculation, social insurance calculation, and personal income tax calculation are carried out in accordance with regulations.
5. Declare and pay social insurance contributions in accordance with regulations.
6. Compare the payroll fund declared for social insurance and the payroll fund for tax purposes as shown in the financial statements.
7. Monitor updates to Vietnamese regulations regarding contributions to social insurance to make appropriate adjustments.
Some information businesses need to know.
1. Table of insurance participation rates for businesses and employees
| Year | Employers (%) | Workers (%) | Total (%) | Trade union funds | Total | ||||
| Social Insurance | Health insurance | UI | Social Insurance | Health insurance | UI | ||||
| 01/2014 đến 30/06/2017 | 18 % | 3% | 1% | 8% | 1,5 % | 1% | 32,5 % | 2% | 34,5 % |
| From July 1st, 2017 onwards | 17,5 % | 3,0 % | 1,0 % | 8,0 % | 1,5 % | 1,0 % | 32,0 % | 2% | 34,0 % |
2. Regional minimum wage
| Area | Regional minimum wage levels 2016 | Regional minimum wage levels 2017 | Regional minimum wage levels 2018 |
| Region I | 3.500.000 VND / month | 3.750.000 VND / month | 3.980.000 VND / month |
| Region II | 3.100.000 VND / month | 3.320.000 VND / month | 3.530.000 VND / month |
| Region III | 2.700.000 VND / month | 2.900.000 VND / month | 3.090.000 VND / month |
| Region IV | 2.400.000 VND / month | 2.580.000 VND / month | 2.760.000 VND / month |
3. Detailed regulations on compulsory social insurance for foreigners from 2018: There are no detailed regulations yet; currently, only Point 2, Article 2 of the 2014 Social Insurance Law exists.
2. Foreign workers employed in Vietnam who possess a work permit, professional certificate, or professional license issued by a competent Vietnamese authority are eligible to participate in compulsory social insurance as prescribed by the Government.
Therefore, in order to implement it, businesses need to wait for more detailed regulations…www.expertis.vn
