Vietnam considers new basis for social insurance premiums

The Vietnamese Ministry of Labour, War Invalids and Social Affairs has proposed changes to the social insurance premium payment basis in a draft revision of the national Law on Social Insurance.

Employers and employees could pay premiums based on actual monthly salary fluctuations, instead of the fixed salary in labour contracts.

The proposal aims to protect employees receiving the regional minimum wage and discourage avoidance of social insurance obligations.

However, it may still be difficult to enforce. That’s because employers can allocate part of actual salaries to non-social insurance benefits, such as allowances for travel and housing.

Ensuring employees’ rights requires cooperation between businesses and government agencies, as well as improved enforcement measures, the government has emphasised.

Opinions on the proposal remain divided, with some employees concerned about increased monthly expenses and a lack of confidence in the Vietnamese social insurance system.

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Chief of Staff Asia