Guidance on salaries as the basis for compulsory social insurance contributions

On 5 September 2025, the Department of Wages and Social Insurance issued Official Letter No. 1198/CTL&BHXH-BHXH (“Official Letter”), providing clarification on issues raised by organizations regarding the determination of salaries as the basis for compulsory social insurance contributions under Decree No. 158/2025/NĐ-CP.

The Official Letter affirms that the monthly salary used as the basis for compulsory social insurance contributions shall include job- or position-based salary, salary allowances, and other additional payments. For employees whose wages are determined by the employer, the job- or position-based salary must be calculated monthly based on the salary system reflected in the labor contract.

Salary allowances will also be included where they are paid as compensation for factors such as working conditions, job complexity, living conditions, or labor market attractiveness, provided that these allowances are specified in the labor contract. Similarly, other additional payments form part of the social insurance contribution base if they are (i) stated as a definite amount together with salary, (ii) agreed in the labor contract, and (iii) paid regularly and stably in each pay period.

In contrast, other benefits and welfare schemes specified in separate sections of the labor contract, including but not limited to: bonuses, initiative rewards; meal allowances; allowances for transportation, fuel, telephone, housing, childcare, or child-rearing; support provided in cases where an employee’s family member passes away, gets married, or on the employee’s birthday; allowances for employees facing difficulties due to occupational accidents or diseases; and other forms of support or allowances, such payments shall not be deemed as salary for the purpose of calculating compulsory social insurance contributions for employees.

With this guidance, enterprises and organizations now have a clearer legal basis for determining the components of salary subject to compulsory social insurance contributions, ensuring compliance with Vietnam’s updated regulations.