Circular No. 01/2025/TT-BLDTBXH dated January 10, 2025 on prescribing indexation rate of monthly salary and income after payment of social insurance premiums

CIRCULAR

PRESCRIBING INDEXATION RATE OF MONTHLY SALARY AND INCOME AFTER PAYMENT OF SOCIAL INSURANCE PREMIUMS

Pursuant to the Government’s Decree No. 62/2022/ND-CP dated September 12, 2022 defining the functions, tasks, powers and organizational structure of the Ministry of Labour, War Invalids and Social Affairs of Vietnam;

Pursuant to the Government’s Decree No. 115/2015/ND-CP dated November 11, 2015 providing guidelines for implementation of the Law on Social Insurance with regard to compulsory insurance (hereinafter referred to as “Decree No. 115/2015/ND-CP”);

Pursuant to the Government’s Decree No. 134/2015/ND-CP dated December 29, 2015 providing guidelines for implementation of the Law on Social Insurance with regard to voluntary insurance (hereinafter referred to as “Decree No. 134/2015/ND-CP”);

At the request of the Director of Social Insurance Department;

The Minister of Labor, War Invalids and Social Affairs of Vietnam promulgates a Circular prescribing indexation rate of monthly salary and income after payment of social insurance premiums.

Article 1. Regulated entities

1. Persons subject to the indexation of salary after payment of social insurance premiums as prescribed in Clause 1 and Clause 2 Article 10 of Decree No. 115/2015/ND-CP include:

a) Employees who receive state-regulated salaries, started participating in social insurance on January 01, 2016 and earlier, receive retirement pensions or lump-sum allowance upon retirement or lump-sum social insurance allowance, or are dead and their families receive lump-sum survivorship allowance within the period from January 01, 2025 to December 31, 2025.

b) Employees who pay social insurance premiums on the basis of employer-decided salaries, receive retirement pensions or lump-sum allowance upon retirement, or lump-sum social insurance allowance, or are dead and their families receive lump-sum survivorship allowance within the period from January 01, 2025 to December 31, 2025. 

2. Persons subject to the indexation of monthly incomes after payment of social insurance premiums as provided by Clause 2 Article 4 of Decree No. 134/2015/ND-CP must be voluntary social insurance participants who receive retirement pensions or lump-sum allowance upon retirement, or lump-sum social insurance allowance, or are dead and their families receive lump-sum survivorship allowance within the period from January 01, 2025 to December 31, 2025. 

Article 2. Indexation of monthly salaries after payment of social insurance premiums

1. Monthly salaries after payment of social insurance premiums of the persons specified in Clause 1 Article 1 hereof shall be indexed as follows:

In that formula, the indexation rate of monthly salary after payment of social insurance premiums in the corresponding year shall be determined, based on Table 1 given hereunder:

Table 1:

2. If an employee has paid social insurance premiums on both State-regulated salaries and employer-decided salaries in different periods, his/her monthly salaries on which social insurance premiums are paid for the period before January 01, 2016 in which he/she paid social insurance premiums on State-regulated salaries and for the period in which he/she paid social insurance premiums on employer-decided salaries shall be adjusted in accordance with the provisions in Clause 1 of this Article.

Article 3. Indexation of monthly income after payment of social insurance premiums

1. Monthly income after payment of social insurance premiums of persons specified in Clause 2 Article 1 hereof shall be indexed as follows:

In that formula, the indexation rate of monthly income after payment of social insurance premiums in the corresponding year shall be determined, based on Table 2 given hereunder:

Table 2:

2. If an employee has paid both compulsory and voluntary social insurance premiums in different periods, his/her monthly income on which voluntary social insurance premiums were paid shall be adjusted according to Clause 1 of this Article while his/her monthly salary on which compulsory social insurance premiums were paid shall be adjusted according to Article 10 of the Decree No. 115/2015/ND-CP and Article 2 of this Circular. The average monthly salary and the average monthly income on which social insurance premiums are paid as the basis for calculation of retirement pensions, lump-sum allowance upon retirement, lump-sum social insurance allowance and lump-sum survivorship allowance shall be calculated according to Clause 4 Article 11 of the Decree No. 115/2015/ND-CP and Clause 4 Article 5 of Decree No.134/2015/ND-CP.

Article 4. Effect

1. This Circular comes into force from February 28, 2025; provisions of this Circular shall apply from January 01, 2025.

2. The Circular No. 20/2023/TT-BLDTBXH dated December 29, 2023 of the Minister of Labor, War Invalids and Social Affairs of Vietnam shall cease to take effect from the effective date of this Circular.

3. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Labour, War Invalids and Social Affairs of Vietnam for consideration./.