INDEXING MONTHLY SALARIES AND INCOMES AFTER SOCIAL INSURANCE PAYMENTS FROM 2020
REGION-BASED MINIMUM WAGES OFFICIALLY INCREASED FROM 01 JANUARY 2020 ONWARDS
09/03/2020
OVERDUE INTEREST RATES OF REFINANCED LOANS EQUAL TO 150% OF THE INTEREST RATE OF SUCH LOANS
09/03/2020INDEXING MONTHLY SALARIES AND INCOMES AFTER SOCIAL INSURANCE PAYMENTS FROM 2020
According to Circular No. 35/2019/TT-BLDTBXH issued by the Ministry of Labor, Invalids and Social Affairs on December 30, 2019 and coming into effect on February 15, 2020: The provisions of this Circular are applied from January 01, 2020 onwards:
– Accordingly, persons subject to indexation of salaries after payments of social insurance include:
- Employees subject to the pay scheme under the State’s regulations, started participating in social insurance programs from January 1, 2016 onwards;
- Employees subject to the pay scheme decided by employers, receive one-off social insurance benefits, or are dead after bequeathing their relatives the right of entitlement to one-off death insurance benefit payments received from January 1, 2020 to December 31, 2020.
– Accordingly, monthly salaries after payment of social insurance of employees participating in mandatory social insurance prescribed by Clause 1 Article 1 of Circular 35 are adjusted as follows:
Indexed monthly salary after payment of social insurance contributions in each year = Total monthly salary after payment of social insurance contributions in each year x Indexation rate of monthly salary after payment of social insurance contributions in the corresponding year
– Of which, the indexation rate of salary after social insurance payments of each year from 2015 to 2020 are, respectively:
- In 2015: 1.13.
- In 2016: 1.10.
- In 2017: 1.06.
- In 2018: 1.03.
- In 2019: 1.00.
- In 2020: 1.00.
– Particularly, for employees who have paid social insurance contributions for periods under both the pay scheme prescribed by the State’s regulations and the pay scheme decided by employers, monthly salaries after payment of social insurance contributions of employees who started participating in social insurance programs per the pay scheme regulated by the State from January 1, 2016 onwards, and monthly salaries after payment of social insurance contributions per the pay scheme decided by employers shall be adjusted in accordance the above rates.
Best regards,
