Official Guidance On Salaries As The Basis For Compulsory Social Insurance Contribution

by KMC Consulting Company Limited

On September 5, 2025, the Department of Wages and Social Insurance issued Official Letter No. 1198/CTL&BHXH-BHXH providing guidance on determining salaries as the basis for compulsory social insurance (SI) contributions. This document clarifies the provisions under Point b, Clause 1, Article 31 of the 2024 Law on Social Insurance (Law No. 41/2024/QH15) and Clause 1, Article 7 of Decree No. 158/2025/ND-CP regarding salary bases for SI contribution.

1. Salary components included in the SI contribution base

According to Official Letter 1198, the salary used as the basis for compulsory SI contribution consists of three main groups:

  • Salary by job or title: Monthly salary for the job or title, established based on the wage scale and payroll system set by the enterprise, and agreed in the labor contract (LC).
  • Salary allowances: Provided to compensate for factors such as working conditions, job complexity, living conditions, or workforce attraction. These allowances must also be specified in the LC.
  • Other additional payments: Fixed amounts agreed in the LC, paid regularly and consistently in each payroll period.

2. Payments excluded from SI contribution

The Official Letter specifies that welfare and benefit regimes, recorded as a separate section in the LC under Clause 5, Article 3 of Circular No. 10/2020/TT-BLĐTBXH, are not included in the SI contribution base, including:

  • Bonuses for initiatives and achievements.
  • Mid-shift meal allowance.
  • Support for petrol, telephone, transportation, housing, childcare, and child-rearing.
  • Assistance for personal/family events such as funerals, weddings, birthdays.
  • Hardship allowance for employees suffering from occupational accidents or diseases.

References

  • 2024 Law on Social Insurance (Law No. 41/2024/QH15)
  • Decree No. 158/2025/ND-CP
  • Circular No. 10/2020/TT-BLĐTBXH
  • Official Letter No. 1198/CTL&BHXH-BHXH

Notes:

  1. This information is provided as a reference from state authorities’ guidance; not all cases apply uniformly.
  2. Enterprises should carefully consider their specific situation to apply the correct regulations.
  3. For detailed consultation, please contact our advisory specialists directly.

For more detailed information about this or related Human resources Advisory, please don’t hesitate to contact us.
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