Photo: Internet

Accordingly, from January 1, 2021, the monthly salary based on which the social insurance premiums are calculated consists of monthly salary, allowance and other additional incomes, including:

The level of salary based on job or position: the level of salary is calculated based on the job or position period following the pay scales and payrolls developed by the employers as regulated in Article 93 of the Labour Code. For employees whose salaries are based on products or a fixed amount, the level of salary is determined by time to define the product price per unit or the piece rate;

Salary allowances paid to compensate for issues relating to working conditions, the complexity of work or living conditions that are not calculated in the salary rate agreed between employers and employees;

Additional income with a specific amount of money defined together with the salary agreed in the labour contract and are paid monthly for employees.

Employers develop wage scales, wage tables and payrolls regulated by Article 93 of the Labour Code as following:

- The employer will be responsible for developing the wage scale, wage table and labour norms as a basis for the recruitment and employment of workers and to negotiate the wage and to pay wages to employees in the employment contract.

- Labour norms must be a progressive average, and it must ensure majority of employees finish the work without lengthening the normal working time and must be tested before official application.

- In developing the wage scale, wage table and labour norms, the employer must consult the workers’ representative organisation(s) at grassroots level.

- The wage scale, wage table and labour norms must be made public at the workplace before official application.

According to Circular 06, the monthly salary based on which the social insurance premiums are calculated will exclude a number of benefits, including bonuses prescribed in Article 104 of the Labor Code; Rewards for innovation; Mid-shift meal allowance; Fuel costs and mileage allowance; Phone allowance; Travel allowance; Accommodation allowance; Babysitting benefit; Childcare benefit; Death benefit inherited from employee’s relative; Marriage allowance paid to employee’s relative; Employee’s birthday benefit; and Benefits granted to employees in difficult situations due to any accident at work or occupational disease; and other allowances and benefits classified into individual payment items covered by employment contracts as prescribed in Article 3 of Circular No. 10/2020/TT-BLĐTBXH.

Circular 06 will take effect from September 1, 2021.