Employee compensation not subject to mandatory social insurance in Vietnam ?
For bonuses to employees working and enjoying the salary regime decided by the employer of an enterprise or FDI company, is it compulsory to pay social insurance premiums?
The monthly salary as a basis for social insurance contribution:
For employees who pay social insurance premiums according to the salary regime decided by the employer, the monthly salary on which social insurance premiums are based is: Salary, salary allowance and other additional amounts (supplements) as prescribed by provisions of the labor law (Clause 2, Article 89 of the Law on Social Insurance No. 58/2014/QH13 dated November 20, 2014).
Employee pay that is not subject to mandatory social insurance:
The monthly salary on which the compulsory social insurance premium is based does not include other remuneration and benefits such as bonuses as prescribed in Article 104 of the Labor Code, initiative bonuses; mid-shift meal; allowances for petrol, phone, travel, housing, child care, child rearing; support when employees have relatives died, employees have relatives getting married, employees' birthdays, allowances for employees in difficult circumstances when suffering from occupational accidents, occupational diseases and other supports and allowances recorded in separate sections in the labor contract specified in Item c2 Point c Clause 5 Article 3 of Circular No. 10/2020/TT-BLDTBXH (Clause 26, Section 3, Article 1 of Circular No. 06/2021/TT-BLDTBXH dated 07/07/2021).
Therefore, the bonus given to employees is an amount that is not subject to compulsory social insurance contribution.
Employee remuneration not subject to mandatory social insurance in Viet Nam?
DMS Law office in Vietnam Director (Signed) Lawyer Do Minh Son |
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