Details of social insurance subsidy levels increased from July 1

Pursuant to Decree 24/2023/ND-CP, from July 1, 2023, the basic salary is 1,800,000 VND/month. The basic salary is used as a basis for: Calculating salary levels in salary tables, allowance levels and implementing other regimes according to the provisions of law for subjects specified in Article 2 of Decree 24/2023/ND-CP; Calculating operating expenses and living expenses according to the provisions of law; Calculating deductions and regimes enjoyed according to the basic salary level.

Increase minimum pension benefits

The 2014 Social Insurance Law stipulates that employees who have paid compulsory social insurance for 20 years or more shall have their pension conditions and levels implemented according to the compulsory social insurance policy. The lowest monthly pension level of employees participating in compulsory social insurance who are eligible for pension according to the provisions of Articles 54 and 55 of the 2014 Social Insurance Law is equal to the basic salary.

Thus, the lowest monthly pension for this group of people will increase to VND1,800,000 from July 1, instead of the current VND1.49 million.

Increase maternity allowance

The one-time allowance for childbirth or adoption will be adjusted when the basic salary increases. Accordingly, the 2014 Law on Social Insurance stipulates that female employees who give birth or employees who adopt children under 6 months old will receive a one-time allowance for each child equal to 2 times the basic salary in the month the female employee gives birth or the month the employee adopts the child. In case the child is born but only the father participates in social insurance, the father will receive a one-time allowance equal to 2 times the basic salary in the month of childbirth for each child.

Thus, from July 1, the one-time subsidy for giving birth or adopting a child will be increased to 3.6 million VND, instead of 2.98 million VND as at present.

In addition, the level of the maternity leave and health recovery regime has also been adjusted to increase. The level of the maternity leave and health recovery regime per day, which is equal to 30% of the basic salary (Clause 3, Article 41 of the Social Insurance Law 2014), will increase to VND540,000 (currently VND447,000) from July 1.

Increase the level of health care and recovery benefits after illness

According to Clause 3, Article 29 of the 2014 Law on Social Insurance, the level of health recovery benefits after illness per day is equal to 30% of the basic salary.

When the basic salary increases from July 1 to 1.8 million VND, the benefit for recuperation and health recovery after illness will increase to 540,000 VND, currently 447,000 VND.

Increase in disability benefits

Regarding one-time allowance, Article 46 of the 2014 Law on Social Insurance stipulates that employees whose working capacity is reduced from 5% to 30% are entitled to one-time allowance and the allowance level is calculated based on the basic salary.

If the working capacity is reduced by 5%, the employee will receive 5 times the basic salary, which is an increase of 9 million VND compared to the current 7.45 million VND. After that, for every additional 1% reduction, the employee will receive an additional 0.5 times the basic salary (which increases to 900,000 VND instead of 745,000 VND as at present).

Regarding monthly allowances, Article 47 of the 2014 Law on Social Insurance stipulates that employees with a 31% or more reduction in working capacity are entitled to monthly allowances. Accordingly, a 31% reduction in working capacity is equal to 30% of the basic salary, and then for each additional 1% reduction, an additional 2% of the basic salary is entitled to.

Thus, from July 1, for every 31% reduction in working capacity, the allowance is 540,000 VND (currently 447,000 VND), then for every additional 1% reduction, the allowance is 36,000 VND (currently 29,800 VND).

The service allowance level has also been adjusted to increase. For employees with a reduced working capacity of 81% or more, who are paralyzed by the spine or blind in both eyes or have amputated or paraplegic limbs or are mentally ill, in addition to the monthly allowance, they will also receive a service allowance equal to the basic salary (ie from July 1, it will increase to 1.8 million VND compared to the current 1.49 million VND).

Death benefits due to work accidents and occupational diseases

Article 51 of the 2014 Law on Social Insurance stipulates that if a worker dies due to a work accident or occupational disease while working, or dies during the first treatment period due to a work accident or occupational disease, his or her relatives will receive a one-time allowance equal to 36 times the basic salary, equivalent to 64.8 million VND from July 1.

Thus, the one-time subsidy for death due to work-related accidents or occupational diseases from July 1 will increase by VND11.16 million compared to the current subsidy of VND53.64 million.

Increase the level of health care and rehabilitation allowance

Clause 2, Article 52 of the 2014 Law on Social Insurance stipulates that the level of allowance for recuperation and health recovery after treatment of injuries and illnesses per day is equal to 25% of the basic salary. If recuperation and health recovery take place at home, the benefit level will increase from July 1 to 450,000 VND instead of 372,500 VND as present; equal to 40% of the basic salary. If recuperation and health recovery take place at a centralized facility, the benefit level will increase to 720,000 VND instead of 596,000 VND.

Increase funeral allowance and monthly death allowance

According to the provisions of Article 66 of the Law on Social Insurance 2014, the person in charge of the funeral is entitled to receive a one-time funeral allowance equal to 10 times the basic salary in the month in which a person in one of the following cases dies: Employees specified in Clause 1, Article 2 of the Law on Social Insurance 2014 who are paying social insurance or employees who are reserving their social insurance payment period and have paid for 12 months or more; Employees who die due to work-related accidents, occupational diseases or die during treatment due to work-related accidents, occupational diseases; People who are receiving pensions; receiving monthly work-related accident or occupational disease allowances and have stopped working.

Therefore, from July 1, 2023, the funeral allowance will be VND 18,000,000 (currently VND 14,900,000).

According to the provisions of Clause 1, Article 68 of the Law on Social Insurance 2014, the relatives of those specified in Clause 1 and Clause 3, Article 66 of the Law on Social Insurance 2014 who die in one of the following cases are entitled to receive monthly survivor benefits: Having paid social insurance for 15 years or more but have not received a one-time social insurance payment; Receiving a pension; Dying due to a work accident or occupational disease; Receiving monthly work accident or occupational disease benefits with a reduction in working capacity of 61% or more.

The monthly death benefit for each relative is equal to 50% of the basic salary; in case the relative has no direct caregiver, the monthly death benefit is equal to 70% of the basic salary.

Therefore, from July 1, 2023, the monthly death benefit for each relative is 900,000 VND (currently 745,000 VND); in case the relative does not have a direct caregiver, the monthly death benefit is 1,260,000 VND (currently 1,043,000 VND).

In which, relatives are entitled to monthly survivor benefits, including: Children under 18 years old; children aged 18 years or older if their working capacity is reduced by 81% or more; children born when the father dies while the mother is pregnant; Wives aged 55 years or older or husbands aged 60 years or older; wives under 55 years old, husbands under 60 years old if their working capacity is reduced by 81% or more; biological fathers, biological mothers, fathers of wives or fathers of husbands, mothers of wives or mothers of husbands, other family members that social insurance participants are obliged to support according to the provisions of the law on marriage and family if they are aged 60 years or older for men, and aged 55 years or older for women; Biological father, biological mother, father of wife or father of husband, mother of wife or mother of husband, other family members that the social insurance participant is obliged to support according to the provisions of the law on marriage and family if under 60 years old for men, under 55 years old for women and has a reduced working capacity of 81% or more.

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