I. Legal basis

• The Vietnam Law on Social Insurance 2024
• Decree 158/2025/ND-CP

II. Regulations on salary as the basic for compulsory Social Insurance contributions 

Pursuant to Clause 1, Article 31 of the Social Insurance Law and Decree No. 158/2025/ND-CP, the provisions on salary as the basis for compulsory social insurance contributions are stipulated as follows:

– According to Point b, Clause 1, Article 31, the salary used as the basis for social insurance contributions is the monthly salary, including the salary for the job or title, salary allowances, and other supplementary amounts, among which:

• The wage based on the job or title calculated on a time basis (monthly) is determined according to the salary scale and payroll established by the employer in accordance with Article 93 of the Labor Code and is specifically agreed upon in the labor contract;
• Allowances are provided to compensate for working conditions, the complexity of the job, living conditions, and the level of labor attraction that have not yet been included or fully reflected, as agreed upon in the labor contract; excluding wage allowances that are dependent on or vary according to the employee’s productivity, working process, and performance quality;
• Other additional payments must have specific monetary amounts, be agreed upon in the labor contract, and be paid regularly and consistently in each pay period; excluding other additional payments that are dependent on or vary according to the employee’s productivity, working process, and performance quality.

– In cases where 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 cases where 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 cases where 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. 

– The subject is a part-time official at the commune, village, or residential group level. If the monthly allowance is lower than the minimum salary used as the basis for compulsory social insurance contributions, then the salary used as the basis for compulsory social insurance contributions shall be equal to the minimum salary used as the basis for compulsory social insurance contributions as prescribed at Point đ, Clause 1, Article 31 of the Law on Social Insurance 2019. 

– In cases where the salary stated in the labor contract and paid to the employee is in a foreign currency, the salary used as the basis for compulsory social insurance contributions shall be calculated in Vietnamese Dong, based on the foreign currency salary converted into Vietnamese Dong at the average exchange rate of the buying rate via bank transfer of Vietnamese Dong to foreign currency, as announced by the four state-owned commercial banks at the end of January 2 for the first six months of the year and July 1 for the last six months of the year. If these dates fall on a holiday or non-working day, the exchange rate of the next working day shall be applied.

III. Comparison of Social Insurance contribution rates before and after the Vietnam Law on Social Insurance 2024 takes effect

IV. Some important notes regarding Social Insurance contribution rates taking effect from July 1, 2025

From July 1, 2025, although the compulsory social insurance contribution rates remain unchanged, there is a significant change in the basis for calculating the contributions, as the “base salary” is replaced by the “reference level” as prescribed by the Government.

In the initial phase after the 2024 Law on Social Insurance takes effect, the reference salary is stipulated as the current base salary (VND 2,34 million/month). However, in the long term, the reference salary will be adjusted based on factors such as the consumer price index, economic growth rate, and the financial balance of the social insurance fund.

In addition, although the social insurance contribution rate remains unchanged, the shift from using the “base salary” to the “reference salary” may affect the actual monthly amount that both employers and employees are required to contribute.  

V. Conclusion

In summary, from July 1, 2025, the compulsory social insurance contribution rate remains unchanged, but there has been an adjustment in the calculation method for the contribution base. Both employees and employers need to clearly understand and stay updated on the new regulations to protect their rights and proactively manage their financial plans. If you have any questions or encounter issues related to social insurance, please contact us for timely and efficient legal support.

VI. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

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To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

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For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

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