Vietnam Social Insurance: Probationary Civil Servants' Contributions Based on 85% of Step 1 Salary, Not 100%
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Based on:41/2024/QH15 - Ministry of Finance
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Vietnam Social Insurance (BHXH Vietnam) has issued an official response clarifying the social insurance contribution base for civil servants during their probationary period. Under Point a, Clause 1, Article 31 of Social Insurance Law No. 41/2024/QH15, the salary used as the contribution base for employees on state-prescribed pay scales is the monthly salary based on position, title, grade, and step, plus any applicable allowances. BHXH Vietnam confirmed that during the probationary period, civil servants are paid only 85 percent of the Step 1 salary under their grade. As a result, the base for calculating social insurance contributions, both the employer share and the employee's own 8 percent contribution, must be calculated on this 85 percent figure, not on 100 percent of the Step 1 salary. This is a practical point for HR and accounting staff at public administrative agencies, public service units, and any employer using the state salary scale, to correctly calculate social insurance contributions during an employee's trial period and avoid over or under payment.
The Question
A reader submitted a question to Vietnam Social Insurance (BHXH Vietnam) about Point a, Clause 1, Article 31 of Social Insurance Law No. 41/2024/QH15, which governs the salary base for social insurance contributions. Under this provision, employees subject to the state-prescribed salary regime have their social insurance contribution base set as the monthly salary based on position, title, grade, step, and military rank, plus position allowances, above-ceiling seniority allowances, occupational seniority allowances, and any salary-preservation coefficient, if applicable.
The reader asked: if a civil servant on probation is paid only 85 percent of the Step 1 salary for their grade (referred to as the grade-and-step salary), should social insurance contributions be calculated on 85 percent or on the full 100 percent Step 1 salary?
BHXH Vietnam's Response
Citing Point a, Clause 1, Article 31 of Social Insurance Law No. 41/2024/QH15, BHXH Vietnam responded as follows:
During the probationary period, the monthly salary by grade and step actually paid to a civil servant by the state agency is 85 percent of the Step 1 salary. Therefore, the base used to calculate social insurance contributions, including both the employer's share and the employee's own 8 percent contribution deducted from salary, must be calculated on the actual salary received, which is 85 percent of Step 1, not the full 100 percent.
Practical Implications
This clarification directly affects how HR and accounting staff calculate contributions at:
- State administrative agencies and public service units that employ probationary civil servants or public employees
- Businesses and organizations that apply the state salary scale to certain positions
Correctly identifying the contribution base during probation, 85 percent rather than 100 percent of Step 1, helps avoid miscalculated contributions, which can otherwise lead to social insurance record adjustments or discrepancies in an employee's future benefit entitlements.
Legal Basis
- Social Insurance Law No. 41/2024/QH15, Point a, Clause 1, Article 31