From July 1, the basic salary will be replaced by a reference level for social insurance contributions for employees.

Employees are subjects participating in the social insurance regime.

From July 1, 2025, the Law on Social Insurance (SI) 2024 will take effect, replacing the SI Law 2014. One of the important changes is the replacement of the concept of "base salary" with "reference level".

What is the reference level?

According to Article 7 of the Social Insurance Law 2024, the reference level is the amount decided by the Government to be used to calculate the contribution level and the benefit level of a number of social insurance regimes prescribed in the Social Insurance Law 2024.

The reference level is adjusted based on the increase in the consumer price index, economic growth, in accordance with the capacity of the state budget and the social insurance fund.

Clause 13, Article 141 of the Law on Social Insurance also clearly states that when the basic salary level has not been abolished, the reference level prescribed in this law is equal to the basic salary level.

At the time the basic salary is abolished, the reference level shall not be lower than that basic salary.

Currently, our country is still applying the basic salary in Decree 73/2024/ND-CP of 2.34 million VND/month.

What is the minimum/maximum social insurance contribution level according to the reference level?

Compulsory social insurance contribution level

Point d, Clause 1, Article 31 of the Law on Social Insurance 2024 stipulates: The salary used as the basis for compulsory social insurance payment is at least equal to the reference level and at most 20 times the reference level at the time of payment.

At the same time, based on Article 32 and Points a and b, Clause 4, Article 33 of the 2024 Social Insurance Law, the mandatory social insurance contribution rate is 25%, including:

- 3% to the sickness and maternity fund

- 22% to pension and death fund.

Thus, the minimum compulsory social insurance contribution level according to the reference level is 2,340,000 VND/month x 25% = 585,000 VND/month.

The maximum compulsory social insurance contribution level according to the reference level is 20 x 2,340,000 VND/month x 25% = 11.7 million VND/month.

At the time the basic salary is abolished, the reference level shall not be lower than that basic salary.

Voluntary social insurance contribution level

According to the provisions of Clause 2, Article 31 of the Law on Social Insurance 2024, the income used as the basis for voluntary social insurance contributions is at least equal to the poverty line for rural areas and at most 20 times the reference level at the time of contribution.

The current poverty line in rural areas = 1.5 million VND/person/month (according to Article 3 of Decree 07/2021/ND-CP).

The monthly contribution is equal to 22% of the monthly income chosen by the voluntary social insurance participant.

Accordingly, the voluntary social insurance contribution rate is as follows:

Voluntary social insurance contribution level = 22% x Monthly social insurance contribution level - State support contribution level

The level of state support for voluntary social insurance contributions is calculated as a percentage (%) of the monthly social insurance contribution according to the poverty line of rural areas for a maximum period of 10 years:

STT	Object	% Support	Support amount (VND)
1	Poor household	30%	1,500,000 x 22% x 30% = 99,000
2	Near poor household	25%	1,500,000 x 22% x 25% = 82,500
3	Other	10%	1,500,000 x 22% x 10% = 33,000