Question:
According to Decree No. 158/2024/ND-CP, from July 1, 2025, the State will abolish the base salary and replace it with a reference salary as the basis for calculating and receiving social insurance (SI). However, from July until now, we have still been applying mandatory SI contribution rates according to the current regulation, specifically: the maximum contribution calculated at 20 times the base salary (VND 2,340,000/month). I would like to ask: Is it lawful for us to continue applying this calculation after July 1, 2025? Are there any documents or specific guidance regulating this issue that we can refer to and compare?Answer:
(i) Regarding continuing to apply the maximum SI contribution at 20 times the base salary after July 1, 2025:
At the present time, continuing to apply this calculation is lawful and is not considered a violation.
The 2024 Social Insurance Law, effective from July 1, 2025, provides a limit on the monthly salary used as the basis for SI contributions based on the “reference salary” (Point đ, Clause 1, Article 31 of the 2024 Social Insurance Law).
At the same time, Article 5 of Decree No. 158/2025/ND-CP provides:
"Until the base salary is abolished, the reference salary shall be equal to the base salary. At the time the base salary is abolished, the reference salary shall not be lower than that base salary."
Currently, there is no document regulating a new reference salary or the abolition of the base salary. Therefore, until specific guidance from the Government is issued, the current base salary still serves as the temporary basis for determining the salary used as the basis for mandatory SI contributions.
Therefore, your enterprise may continue to apply the maximum at 20 times the base salary and it will not be considered a violation.
It is expected that the base salary may be abolished and a new reference salary regulated around January 1, 2026.
(ii) Regarding reference documents or guidance:
+Social Insurance Law No. 41/2024/QH15 promulgated by the National Assembly on June 29, 2024
+Decree No. 158/2025/ND-CP promulgated by the Government on June 25, 2025, providing detailed regulations and guidance for the implementation of certain articles of the Social Insurance Law on mandatory social insurance, effective from July 1, 2025
Consultation: Labor and Employment Services
