Which allowances will increase when the basic salary is adjusted from July 1?

Many allowances for workers under the Social Insurance Law will be adjusted to increase according to the new basic salary from July 1.

Many social insurance benefits will increase according to the basic salary. (Illustration photo: PV/Vietnam+)

The Government has just issued Decree No. 24/2023/ND-CP dated May 14, 2023, stipulating the basic salary for cadres, civil servants, public employees and armed forces. From July 1, 2023, the basic salary will increase from VND 1.49 million to VND 1.8 million/month.

Not only will the salaries of cadres, civil servants, public employees and armed forces increase according to the new basic salary level, but many allowances for workers under the Social Insurance Law will also be adjusted to increase according to the basic salary from July 1.

Increase maternity allowance

The one-time allowance for childbirth or adoption will be adjusted to increase the basic salary. Accordingly, the Law on Social Insurance 2014 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 of giving birth 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 VND3,600,000, from the current VND2,980,000.

In addition, the level of health care and recovery allowance after maternity leave has also been adjusted to increase. The level of health care and recovery allowance after maternity leave per day, which is equal to 30% of the basic salary (Clause 3, Article 41 of the Law on Social Insurance 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 Law on Social Insurance 2014, the level of benefit for recuperation and health recovery 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 Law on Social Insurance 2014 stipulates that employees with a reduced working capacity of 5% to 30% are entitled to a 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 9,000,000 VND compared to the current 7,450,000 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 greater reduction in working capacity are entitled to monthly allowances. Accordingly, a 31% reduction in working capacity is equal to 30% of the base salary, and for each additional 1% reduction, an additional 2% of the base 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 is also 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 1,800,000 VND compared to the current 1,490,000 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 VND 64,800,000 from July 1.

Thus, the one-time subsidy for death due to work-related accidents or occupational diseases from July 1 will increase by VND11,160,000 compared to the current subsidy of VND53,640,000.

Increase the level of health care and rehabilitation allowance

Clause 2, Article 52 of the Law on Social Insurance 2014 stipulates that the level of allowance for recuperation and health recovery after treatment of injury or illness 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.

Adjustment of funeral allowance and monthly death allowance

In case an employee who is eligible for funeral benefits dies, the person in charge of the funeral will receive a one-time funeral benefit equal to 10 times the basic salary. Accordingly, the funeral benefit from July 1 will increase to VND18,000,000 compared to VND14,900,000 under current regulations.

The monthly death benefit for relatives when a worker dies has also been adjusted to increase. The 2014 Law on Social Insurance stipulates that the monthly death benefit for each relative is equal to 50% of the basic salary, thus increasing from VND 745,000 to VND 900,000); in case the relative does not have a direct caregiver, the monthly death benefit is equal to 70% of the basic salary, increasing from VND 1,043,000 to VND 1,260,000.

Increase minimum pension benefits

The Law on Social Insurance 2014 stipulates that employees who have paid compulsory social insurance for 20 years or more shall have their pension conditions and levels implemented in accordance with 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 Law on Social Insurance 2014 is equal to the basic salary.

Thus, the lowest monthly pension for this group of subjects will increase to VND1,800,000 from July 1 instead of the current VND1,490,000./.

Source: https://www.vietnamplus.vn/nhung-khoan-tro-cap-nao-se-tang-khi-dieu-chinh-luong-co-so-tu-17/862745.vnp

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