ADJUSTMENT OF MONTHLY SALARIES FOR WHICH SOCIAL INSURANCE PREMIUMS HAVE BEEN PAID
On December 30, 2020, the Ministry of Labor, Invalids and Social Affairs issues the Circular No. 23/2020/TT-BLDTBXH specifying coefficients for adjustment of monthly salaries and incomes for which social insurance premiums have been paid.
Accordingly, monthly salary on which social insurance premiums are based which is adjusted in a year = Total monthly salary on which social insurance premiums are based in a year x Coefficient for adjustment of salary for which social insurance premiums have been paid in the corresponding year.
Of which, the coefficient for adjustment of salary for which social insurance premiums have been paid in the corresponding year is specified as follows: Prior 1995, the adjustment coefficient is 5.01; in 1995, 2000, 2005, 2010, 2016, 2020 and 2021, the adjustment coefficient is 4.25; 3.52; 2.82; 1.69; 1.14; 1.00 and 1.00, respectively.
Especially, for employees who have paid social insurance premiums both under the State-prescribed salary regime and under the employer-decided salary regime, monthly salaries for which they start paying social insurance premiums under the State-prescribed salary regime from January 01, 2016, onward, and monthly salaries for which they have paid social insurance premiums under the employer-decided salary regime shall be adjusted according to the above-mentioned adjustment coefficient.
This Circular takes effect on February 15, 2021.
