Salary as the Basis for Compulsory Social Insurance Contributions from July 1

On June 25, 2025, the Government promulgated Decree No. 158/2025/ND-CP detailing and guiding the implementation of certain provisions of the Law on Social Insurance regarding compulsory social insurance. The Decree takes effect from July 1, 2025, and includes regulations on wages as the basis for compulsory social insurance contributions as follows:

1. For employees subject to the wage regime decided by the employer:
The monthly salary used as the basis for compulsory social insurance contributions includes the job- or position-based salary, salary allowances, and other additional payments, in which:

a. The job- or position-based salary calculated by time (monthly) for the job or position, based on the salary scale and payroll table developed by the employer in accordance with Article 93 of the Labor Code, as agreed upon in the labor contract;

b. Salary allowances intended to compensate for working conditions, job complexity, living conditions, and labor market attraction factors that have not yet been fully reflected in the salary specified at point a of this Clause, as agreed upon in the labor contract; excluding salary allowances that vary depending on work performance, working process, or the quality of work performed by the employee;

c. Other additional payments with a specific amount determined together with the salary specified at Point a of this Clause, which are agreed upon in the labor contract and paid regularly and stably in each pay period.

2. For part-time employees whose monthly salary is equal to or higher than the reference level, the basis for compulsory social insurance contributions shall be the monthly salary as agreed upon in the labor contract

• In case the labor contract stipulates an hourly wage, the monthly salary shall be calculated by multiplying the hourly wage by the number of working hours in the month as agreed upon in the labor contract;
• In case the labor contract stipulates a daily wage, the monthly salary shall be calculated by multiplying the daily wage by the number of working days in the month as agreed upon in the labor contract;
• In case the labor contract stipulates a weekly wage, the monthly salary shall be calculated by multiplying the weekly wage by the number of working weeks in the month as agreed upon in the labor contract.

3. For part-time officials at the commune, village, or residential group level, the salary used as the basis for social insurance contributions is the monthly allowance. If the allowance is lower than the minimum contribution salary level (VND 2.34 million), the contribution shall be based on the reference level. In cases where the individual does not work and does not receive the allowance for 14 days or more in a month, both the employee and the employer are not required to pay social insurance contributions for that month.

4. For enterprise managers, controllers, representatives of state capital, representatives of capital contributed by enterprises in accordance with the law, members of the Board of Directors, General Directors, Directors, members of the Supervisory Board or controllers, and other elected management positions of cooperatives and unions of cooperatives, the basis for social insurance contributions shall be the salary received by these individuals in accordance with regulations.

5. Owners of household businesses that are registered under the declaration-based tax method shall be subject to compulsory social insurance contributions starting from July 1, 2025, while other household business owners will be subject to this requirement from July 1, 2029. According to 2024 statistics, there are approximately 80,000 household businesses nationwide paying taxes under the declaration-based method, and over 2 million paying taxes under the presumptive (lump-sum) method.

This group may choose the salary to be used as the basis for social insurance contributions, but it must not be lower than the reference level and not higher than 20 times that level. The contribution rate for household business owners is 25% of the average salary used as the basis for social insurance contributions, including 22% to the Retirement and Survivorship Fund and 3% to the Sickness and Maternity Fund. After participating for at least 12 months, household business owners may reselect the salary used as the basis for contributions.

Other provisions:

• For employees whose salaries are paid in foreign currencies as specified in their labor contracts, the salary used as the basis for social insurance contributions shall be converted into Vietnamese đồng based on the exchange rates announced by four state-owned commercial banks at the end of January 2 for the first half of the year and on July 1 for the second half. If these dates fall on a weekend or public holiday, the exchange rate of the next working day shall apply.
• The salary used as the basis for compulsory social insurance contributions must not be lower than the reference level and not higher than 20 times the reference level at the time of contribution. Based on the annual average consumer price index, relevant authorities shall determine the adjustment coefficient for the contribution-based salary and implement adjustments in accordance with regulations.