Are allowances according to classification calculated for compulsory social insurance contributions and overtime pay?

Đức Vân |

The responsibility allowance does not belong to the actual salary paid to calculate overtime salary, and is not included in the salary used as a basis for compulsory social insurance contributions.

Sending a question to the Government Electronic Information Portal, reader M.T. H said: When holding the title of safety and hygiene worker, employees are entitled to additional responsibility allowances according to the provisions of point b, clause 5, Article 74 of the 2015 Law on Occupational Safety and Health. The allowance level for safety and hygiene workers is based on the agreement of the employer and the Executive Committee of the grassroots trade union and is specifically recorded in the operating regulations of the safety and hygiene worker network.

After agreeing with the Trade Union Executive Committee, the allowance level is recorded in the safety and hygiene regulations as follows: This amount is paid monthly based on monthly work performance as follows: Class A is entitled to 100% of the benefit level, class B is entitled to 80%, class C is entitled to 60%, Class D or not classified: 40%.

I would like to ask, does this amount of money have to be included by the company in the actual salary paid to calculate overtime salaries for employees and be included in the salary as a basis for compulsory social insurance participation?" - Ms. H asked.

Answering this issue, Thanh Hoa Provincial Social Insurance said: Article 17 of Decree No. 115/2015/ND-CP dated November 11, 2015 of the Government detailing a number of articles of the Law on Social Insurance on compulsory social insurance stipulates:

Article 17. Monthly salary for compulsory social insurance contributions:

The monthly salary for social insurance contributions for employees who pay social insurance according to the salary regime decided by the employer in Clause 2, Article 89 of the Law on Social Insurance is regulated as follows:

1. From January 1, 2016 to December 31, 2017, the monthly salary for social insurance contributions is the salary and salary allowance according to the provisions of labor law recorded in the labor contract.

2. From January 1, 2018 onwards, the monthly salary for social insurance contributions is the salary level, salary allowance and other supplements according to the provisions of labor law recorded in the labor contract".

Article 7 of Decree No. 158/2025/ND-CP dated June 25, 2025 of the Government detailing and guiding the implementation of a number of articles of the Law on Social Insurance on compulsory social insurance, stipulates:

Article 7. Salary as a basis for compulsory social insurance contributions

The salary used as a basis for compulsory social insurance contributions is implemented according to the provisions of Clause 1, Article 31 of the Law on Social Insurance and is specified in detail as follows:

1. The salary used as the basis for compulsory social insurance contributions as prescribed in point b, clause 1, Article 31 of the Law on Social Insurance is the monthly salary, including the salary level according to the job or title, salary allowances and other supplementary amounts, in which:

a) The salary level according to the job or title calculated according to the time (months) of the job or title according to the salary scale, salary table built by the employer according to the provisions of Article 93 of the Labor Code is agreed upon in the labor contract;

b) Salary allowances to compensate for factors related to working conditions, complexity of work, living conditions, level of labor attraction that the salary level at point a of this clause has not been taken into account or is not fully calculated, agreed upon in the labor contract; excluding dependent or fluctuating salary allowances according to labor productivity, working process and quality of work performance of employees;

c) Other supplements that determine the specific amount of money along with the salary level as prescribed in point a of this clause, agreed upon in the labor contract and paid regularly and stably in each pay period; excluding other supplements that are dependent or fluctuate according to labor productivity, working process and quality of work performance of employees".

Point a, Clause 1, Article 55 of Decree No. 145/2020/ND-CP dated December 14, 2020 of the Government detailing and guiding the implementation of a number of articles of the Labor Code on working conditions and labor relations, stipulates:

a) The hourly salary actually paid for the work being done on a normal working day is determined by the hourly salary actually paid for the work being done of the month or week or day on which the employee works overtime (excluding overtime salary, overtime salary when working at night, salary on holidays, Tet holidays, paid holidays according to the provisions of the Labor Code; bonuses according to the provisions of Article 104 of the Labor Code, initiative bonuses; mid-shift meal allowances, gasoline, telephone, travel allowances, housing allowances, childcare allowances, childcare allowances; support when relatives die, employees have relatives marrying, birthdays of employees, occupational diseases and other support and allowances not related to the performance of work or titles in the labor contract) divided by the total actual working hours corresponding to the month or week or day the employee works overtime (not exceeding the number of normal working days in the month and the number of normal working hours in 01 day, 01 week according to the provisions of law that the enterprise performs).

According to Ms. H's reflection, when holding the title of safety and hygiene worker, this person is entitled to additional responsibility allowances according to the provisions of point b, clause 5, Article 74 of the 2015 Law on Occupational Safety and Health. This is implemented based on the agreement of the employer and the grassroots Trade Union Executive Committee and is specifically recorded in the operating regulations of the safety and hygiene worker network.

Payment is based on monthly work performance as follows: Grade A is entitled to 100% of the benefit level, grade B is entitled to 80%, grade C is entitled to 60%, grade D or non-grade is 40%.

In comparison with the provisions of clauses 1, 2, 3 mentioned above: The allowance for occupational safety and hygiene is paid based on monthly work performance, the benefit level is not fixed but changes according to the ranking results. Therefore, this responsibility allowance does not belong to the actual salary paid to calculate overtime pay for employees.

This responsibility allowance is not recorded, not agreed upon in the labor contract and is not paid regularly and stably in each pay period. Therefore, the responsibility allowance in this case is not included in the salary as a basis for compulsory social insurance contributions.

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