Salary on which social insurance premiums are based
LEGAL ADVICE ON CONTRACTS
30/01/2018
Financial liability of both employee and employer
09/01/2018Salary on which social insurance premiums are based
The current laws provide many overlapping and unclear terms on salary on which social insurance premiums are based. In details, under Clause 2 Article 94 of Law on Social Insurance: “For laborers paying social insurance premiums according to the salary regime decided by their employers, their monthly social insurance payment salaries or remuneration are the salaries or remuneration stated in their labor contracts”.
According to Clause 1 Article 90 and Point d Clause 1 Article 23 of Labor Law 2012, “Salary includes a salary amount which is based on the work or title, salary allowance(s) and other additional payments” and a labor contract must have the content of “Salary, form of salary payment, deadline for salary payment, salary-based allowances and other additional payments”.
Therefore, if we bring Labor Law 2012 into comparison with Law on Social Insurance as above, it is clear that from 01 May, 2013, for laborers paying social insurance premiums according to the salary regime decided by their employers, their monthly social insurance payment salaries or remuneration are the salaries stated in their labor contracts, including salary, salary-based allowances and other additional payments.
Nevertheless, in accordance with Dispatch 517/LDTBXH-BHXH dated 28 February 2012 of the Ministry of Labour – Invalids and Social Affairs, monthly social insurance payment salaries or remuneration of laborers paying social insurance premiums according to the salary regime decided by their employers exclude allowances.
Due to the conflicts of legal documents as stated above, FUJILAW directly sent an official letter to VIETNAM SOCIAL INSURANCE to request for the exact guideline. On 10 December 2014, VIETNAM SOCIAL INSURANCE issued an official response-letter in which define: monthly social insurance payment salary or remuneration of laborer paying social insurance premiums according to the salary regime decided by the employer exclude allowances. Here below is the Official Response-Letter of Vietnam Social Insurance for your kind of reference.
|22.12.2014|
