According to the Social Insurance Law, employees currently contribute 10.5% of their salary as the basis for social insurance contributions, including 8% to the Retirement and Death Benefit Fund; 1.5% to the Health Insurance Fund; and 1% to the Unemployment Insurance Fund.
When the base salary increases, the salary used as the basis for social insurance contributions also increases accordingly, leading to an increase in monthly contributions. However, this increase is not significant for employees because they only contribute 8% to the pension and death benefit fund, while employers contribute up to 14%.
It's worth noting that this increase brings significant long-term benefits. As contributions increase, pension benefits also increase. Overall, workers only contribute a small amount more, but their retirement benefits can be much higher, helping to ensure a stable life in old age.
The increase in the base salary also changes the maximum social insurance contribution level. According to current regulations, the highest contribution level is 20 times the base salary. If the base salary increases to approximately 2.53 million VND/month, the social insurance contribution ceiling will increase from 46.8 million VND to approximately 50.6 million VND/month.
This adjustment is particularly significant for high-income earners. Previously, even with very high actual incomes, their salary used as the basis for social insurance contributions was limited to a ceiling. Raising this ceiling increases the income used for calculating social insurance contributions, allowing workers to receive benefits more closely aligned with their actual income.
A fundamental principle of social insurance is "contribution-benefit". When contributions increase, employee benefits are also increased accordingly, specifically: pensions will increase based on the average salary on which social insurance contributions were paid; maternity benefits will be higher because they are calculated based on the salary on which social insurance contributions were paid; and sickness and work-related accident benefits will also increase accordingly.
In particular, for high-income earners, increasing the social insurance contribution ceiling helps them avoid being disadvantaged when receiving benefits, especially pensions.
Adjusting the base salary is an important step in reforming wage and social security policies. Although social insurance contributions may increase, the benefits for workers are clear and long-term.
Workers need to proactively monitor policy changes, check their social insurance contributions, and ensure that their employers comply with regulations. Full and continuous participation in social insurance is not only an obligation but also a guarantee for the future.
If the proposed increase in the minimum wage is approved, it will be a positive signal, contributing to improving workers' rights and strengthening their confidence in the social security system.
