Youme Law Firm LLC said that according to Article 7 of the Law on Social Insurance 2024, the reference level is the amount of money decided by the Government to calculate the contribution level and the level of enjoyment of some social insurance regimes prescribed in the Law on Social Insurance 2024.
The reference level is adjusted based on the increase in the consumer price index, economic growth, in accordance with the capacity of the State budget and the Social Insurance Fund.
According to Article 141 of the Law on Social Insurance 2024, it is stipulated that:
Transitional regulations
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11. Subjects specified in Points a, b, c, d, d, g and i, Clause 1, Article 2 of this Law who have participated in social insurance before the effective date of this Law and have paid compulsory social insurance for 20 years or more shall have the lowest monthly pension equal to the reference level.
12. For the amount of compulsory social insurance and unemployment insurance that employers are responsible for paying according to the provisions of Law No. 58/2014/QH13, Law on Employment No. 38/2013/QH13, but by the end of June 30, 2025 if they do not pay or do not pay in full, they will be handled according to the provisions on late payment and evasion of payment of this Law.
13. When the basic salary has not been abolished, the reference level prescribed in this Law shall be equal to the basic salary. At the time the basic salary is abolished, the reference level shall not be lower than that basic salary.
14. Documents authorizing others to receive pensions, social insurance benefits and other regimes according to the provisions of Law No. 58/2014/QH13 shall continue to be implemented until June 30, 2026.
15. The Government shall detail this Article.
Accordingly, when the basic salary has not been abolished, the reference level prescribed in the Law on Social Insurance 2024 is equal to the basic salary. At the time the basic salary is abolished, the reference level shall not be lower than that basic salary.
According to Article 3 of Decree 73/2024/ND-CP, from July 1, 2024, the basic salary is VND 2,340,000/month. This new basic salary replaces the old basic salary of VND 1,800,000/month stipulated in Decree 24/2023/ND-CP (expired).
Thus, in case the basic salary of VND 2,340,000 is abolished, civil servants, public employees and armed forces will apply the reference level prescribed in Article 7 of the Law on Social Insurance 2024, not lower than VND 2,340,000/month.
Note: The basic salary of VND 2,340,000/month can be replaced by another basic salary or basic salary.
- Before salary reform: The new salary level replaces the basic salary of VND 2,340,000 with another basic salary level
Whether or not the basic salary of VND 2,340,000/month will be changed to another level depends on the Government's adjustment after reporting to the National Assembly for consideration and decision in accordance with the State budget capacity, consumer price index and economic growth rate of the country (Clause 3, Article 3 of Decree 73/2024/ND-CP).
- After salary reform: The new salary level replaces the basic salary of VND 2,340,000 as the basic salary.
- The basic salary may be proposed after 2026 along with the proposal to implement 5 new salary tables of the public sector.
- The Central Economic Committee will preside over the preliminary review of the implementation of Resolution 27-NQ/TW in 2018 in coordination with the Party Committee of the Ministry of Home Affairs and relevant departments, ministries and branches to study and evaluate the suitability, feasibility and suitability to submit to the Central Committee for consideration of this issue.
