Social insurance contribution level increases according to base salary
If the base salary is adjusted to increase by about 8% from July 1, 2026, the level of social insurance (SI) contributions will increase accordingly.
The draft decree developed by the Ministry of Home Affairs is proposing to adjust the base salary to increase by 8%. Accordingly, the base salary may be increased to nearly 2.53 million VND/month, as a basis for calculating many regimes and policies, including social insurance.
Currently, employees pay compulsory social insurance with a total rate of 10.5% of salary as the basis for contribution, including 8% to the Pension and Survivorship Fund, 1.5% to the Health Insurance Fund and 1% to the Unemployment Insurance Fund.
Because the base salary is the foundation for determining the basic salary for the group receiving salaries from the state budget, when this level increases by 8%, the salary used as a basis for social insurance contributions also increases correspondingly. This leads to an increase in the compulsory social insurance contribution level of employees.
However, the proportion of employees directly contributing to the Death and Survivorship Pension Fund accounts for only 8%, while employers contribute up to 14%. Therefore, the amount of money employees have to pay additionally is not large, but the benefits enjoyed when retiring have increased significantly due to the higher total contribution to the fund.
Increasing the social insurance contribution ceiling, high-wage earners benefit
The increase in the base salary also entails changes in the maximum social insurance contribution level. According to current regulations, the highest social insurance contribution level is equal to 20 times the base salary level.
If the base salary is increased to about 2.53 million VND/month from July 1st, the social insurance contribution ceiling will increase from 46.8 million VND to about 50.6 million VND/month.
This is of great significance to the group of high-income workers. Previously, although receiving salaries of tens to hundreds of millions of VND per month, their social insurance contributions were limited to the ceiling of 46.8 million VND. When this ceiling was raised, the salary used as a basis for social insurance contributions also increased accordingly.
When the social insurance contribution level increases, benefits such as sickness, maternity, pension... are also calculated based on a higher salary contribution. Therefore, the rights of workers will be clearly improved, especially in the long term.
