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WHAT ARE THE ALLOWANCES AND INCOMES NOT INCLUDED IN THE VIETNAM COMPULSORY SOCIAL INSURANCE FROM 2018?

From January 1, 2018, many additional incomes of laborers will be added as a basis for calculating compulsory social insurance.

In addition to the income calculated for compulsory social insurance payment in accordance with current regulations, from January 1, 2018, adding more income of employees as a basis for calculating compulsory social insurance.

This is a remarkable content specified in Clause 2, Article 30 of Circular 59/2015/TT-BLDTBXH detailing and guiding the implementation of some articles of the Social Insurance Law 2014 on compulsory social insurance.

Specifically, other additional provisions are stipulated in Point a, Clause 3, Article 4 of Circular 47/2015/TT-BLDTBXH guiding the implementation of labor contracts, labor discipline and material responsibility of the Decree. 05/2015/ND-CP.

Accordingly, the monthly salary of social insurance is the salary, salary allowance and other additional amounts in accordance with the Labor Code stated in the labor contract. Additional amounts and the salary agreed in the labor contract are used to determine the specific amount.

However, the monthly salary of compulsory social insurance does not include other benefits, such as bonuses as stipulated in Article 103 of the Labor Code.

There will be 14 incomes excluding social insurance from January 2018, including:

  1. Bonuses as stipulated in Article 103 of the Labor Code of 2012;
  2. Bonus initiatives;
  3. Mid-shift meal allowance;
  4. Gasoline allowance;
  5. Phone allowance;
  6. Moving allowance;
  7. Housing allowance;
  8. Child allowance;
  9. Child care allowance;
  10. Employees’ birthdays allowance;
  11. Allowance for employees who have a married relative;
  12. Allowance for employees who have a dead relative;
  13. Allowance for workers in difficult circumstances when suffering from labor accidents or occupational diseases;
  14. Other allowances are recorded separately in the labor contract according to Clause 11, Article 4 of Decree 05/2015/ND-CP.

According to Vietnam Social Insurance, the lowest monthly salary for compulsory social insurance is equal to the regional minimum wage; the highest is equal to 20 times of the base salary as prescribed by the Government.