(kontumtv.vn) – From July 1, 2024, when the basic salary increases by 30%, from 1.8 to 2.34 million VND/month, many amounts of money and some benefits will also increase.

In addition to being used as the basis for calculating pensions and social insurance benefits, the basic salary is also used to calculate many other benefits such as social insurance, health insurance, and unemployment insurance contributions for employees.

From July 1, 2024, the basic salary will increase from 1.8 million VND to 2.34 million VND/month, an increase of 30%. When the basic salary increases, there will be adjustments to a series of related regimes when using this salary as the basis for calculation.

Increase pension

The scope of application is very wide, reaching more than 3.3 million people, including pensioners from compulsory social insurance participation (public and private sectors) and voluntary social insurance participants.

Photo caption
Pension payment.

Article 56 and Article 71 of the Law on Social Insurance stipulate that the minimum pension is equal to 1 month of basic salary. When the basic salary increases to 2.34 million VND/month, this pension also increases to 2.34 million VND/month. This is the pension applied to people who have paid 20 years of social insurance.

The Ministry of Labor, War Invalids and Social Affairs also proposed that pensioners, workers' compensation and monthly allowances received before January 1, 1995, after a 15% increase, whose benefit level is lower than VND 3.2 million/month, will be adjusted to increase by VND 300,000/person/month.

Current pension is calculated as follows: Pension = benefit rate x average monthly salary/income for social insurance contribution.

According to the above formula, the pension level depends on the benefit rate and the average monthly salary or income for social insurance contributions in each period.

When the basic salary increases, the average monthly salary or income subject to social insurance contributions of retired cadres, civil servants, public employees and armed forces will also change accordingly.

Therefore, when the basic salary increases by 30%, this average level also increases and the pensions of these subjects also increase accordingly. This is also the time when pensions and social insurance benefits increase the highest ever.

Social insurance contributions increase according to the increase in basic salary

Health insurance premiums are equal to 4.5% of the basic salary, pension or unemployment benefits according to current regulations. With a basic salary of 2.34 million VND/month, the premiums for employees and the first person in the household are up to 105,300 VND/month.

In a household, the second to fifth person pay 70%, 60%, 50%, 40% of the first person's premium, respectively, VND 73,710, VND 63,180, VND 52,650 and VND 42,120 per month.

By year, the health insurance premiums of household members from the first person onwards are VND 1,263 million, VND 884,520, VND 758,160, VND 631,800 and VND 505,440 respectively.

Increase sick leave, maternity leave...

From July 1, the level of benefits for maternity, sickness, and post-maternity recuperation is equal to 30% of the basic salary per day, equivalent to VND 702,000/day, an increase of VND 162,000/day compared to the current level.

The one-time allowance upon birth of each child equal to 2 times the basic salary in the month of birth will be 4.68 million VND/child, replacing the current level of 3.6 million VND/child.

The funeral allowance is 10 times the basic salary, up to 23.4 million VND.

Similarly, the one-time allowance for work-related accidents and occupational diseases, monthly allowance for work-related accidents and occupational diseases, allowance for serving people with work-related accidents and occupational diseases, one-time allowance for death due to work-related accidents and occupational diseases, and post-treatment recovery are all calculated based on the basic salary, so they will also be adjusted in the coming time.

Maximum unemployment benefits will increase

Unemployment benefits are regulated to be equal to 60% of the average monthly salary for unemployment insurance contributions of the 6 consecutive months before leaving work, not exceeding 5 times the basic salary for civil servants, public employees, and state sector workers. Thus, the maximum unemployment benefit will increase to 11.7 million VND.

HL/Newspaper