Adjusting income for voluntary social insurance contributions from July 1, 2025

From July 1, 2025, employees who pay voluntary social insurance (SI) according to the Social Insurance Law 2024 will have 4 SI regimes that voluntary SI participants are entitled to, and participants can choose 1 of many payment methods that are suitable for themselves. The Social Insurance Law (amended) recently passed by the National Assembly has many changes related to SI regimes, including regulations on income as a basis for voluntary SI contributions.

1. Adding more benefits when paying voluntary SI from July 1, 2025

According to current regulations, the Social Insurance Law 2014 stipulates that voluntary SI only enjoys 2 regimes: retirement and death.
From July 1, 2025, when the Social Insurance Law 2024 takes effect, there will be 4 social insurance regimes that voluntary social insurance participants will enjoy, including:

• Maternity allowance;
• Retirement;
• Death benefit;
• Occupational accident insurance according to the provisions of the Law on Occupational Safety and Hygiene 2015.

Thus, the Social Insurance Law 2024 has added 2 new regimes, namely maternity allowance and occupational accident insurance, for employees participating in voluntary social insurance.
 
 

Regulations on income as a basis for voluntary SI contributions.

2. Subjects participating in voluntary social insurance from July 1, 2025

Specifically, Clause 4, Article 2 of the Social Insurance Law (amended) stipulates that subjects participating in voluntary social insurance include:

• Vietnamese citizens aged 15 years or older who are not subject to compulsory social insurance and are not receiving pensions, social insurance benefits, or monthly allowances;
• Employees working under indefinite-term labor contracts or fixed-term labor contracts with a term of 1 month or more, including cases where the employee and the employer agree on a different name but the content shows the paid work, salary and management, operation and supervision of one party;

Officials, civil servants and public employees who are temporarily suspending the performance of labor contracts or work contracts, except in cases where the two parties have an agreement on compulsory social insurance payment during this period.

3. Voluntary social insurance contributions under the Social Insurance Law 2024 can be paid in one of several ways

Currently, the income used as the basis for voluntary social insurance contributions is at least equal to the poverty line for rural areas, and at most 20 times the base salary.

In addition, Article 104 of the new Law also stipulates the average income level as the basis for voluntary social insurance contributions, calculated by the average of the income levels used as the basis for social insurance contributions for the entire contribution period.

The monthly income for which social insurance contributions have been paid to be used as the basis for calculating the average income level used as the basis for social insurance contributions of employees is adjusted based on the consumer price index of each period according to the Government's regulations.
 

Changes to Social Insurance Schemes in Vietnam from July 2025

In addition, according to the transitional provisions in Clause 13, Article 141 of the Social Insurance Law 2024, when the basic salary has not been abolished, the reference level is equal to the basic salary. At the time the basic salary is abolished, the reference level is not lower than that basic salary.

Employees who are eligible to participate in voluntary social insurance according to regulations shall pay 22% of the income used as the basis for voluntary social insurance contributions to the pension and death benefit fund every month.

Based on socio-economic development conditions and the State budget capacity of each period, the Government shall prescribe the support level, support objects and implementation period of the policy to support social insurance contributions for voluntary social insurance participants.

4. According to the new Law, voluntary social insurance participants can choose one of the following payment methods:

• Monthly; once every 3 months; once every 6 months; once every 12 months.
• Paying once for many years in the future with a payment amount lower than the prescribed payment amount.
• Paying once for the remaining social insurance payment period to be eligible for pension, with a payment amount higher than the prescribed payment amount.

The voluntary social insurance payment period for employees is prescribed as follows:

• Within a month for monthly payment; within 3 months for 3-month payment.
• Within the first 4 months for 6-month payment.
• Within the first 7 months for 12-month payment.

5. Maximum monthly income for voluntary social insurance contribution from July 1, 2024

On June 30, 2024, the Government issued Decree 73/2024/ND-CP stipulating the basic salary and bonus regime for cadres, civil servants, public employees and armed forces, accordingly, the basic salary is 2.34 million VND (applied from July 1, 2024).
Thus, the maximum monthly income for voluntary social insurance contributions from July 1, 2024 is 46.8 million VND.

If you need assistance in adjusting income for voluntary social insurance contributions from July 1, 2025, please contact us directly for advice and to provide services in the most professional and effective way.

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