WHY DO WORKERS STILL HAVE TO PAY SOCIAL INSURANCE CONTRIBUTIONS AT OR ABOVE THE REGIONAL MINIMUM WAGE EVEN IF THEY CHANGE?

What is the minimum wage for social insurance contributions in 2026? Even though the minimum wage has changed, why do workers still have to pay social insurance contributions at or above the regional minimum wage? Let’s explore this further with Pham Consult!

What is the minimum wage for social insurance contributions in 2026?

Based on Article 31 of the Social Insurance Law 2024, the following is stipulated:

Basis for Social Insurance Contributions

1. The salary used as the basis for mandatory social insurance contributions is regulated as follows:
2. a) For employees subject to the salary regime prescribed by the State, the salary used as the basis for social insurance contributions is the monthly salary according to position, title, rank, grade, military rank, and allowances for position, seniority allowance exceeding the standard rate, professional seniority allowance, and retained salary differential coefficient (if any);
3. b) For employees subject to the salary regime determined by the employer, the salary used as the basis for mandatory social insurance contributions is the monthly salary, including the salary level according to the job or title, salary allowances, and other supplementary amounts agreed upon and paid regularly and stably in each pay period.

In cases where an employee ceases work but continues to receive a monthly salary equal to or higher than the lowest salary used as the basis for mandatory social insurance contributions, contributions shall be made based on the salary received during the period of cessation of work;

1. c) For the subjects specified in points d, e, and k of Clause 1, Article 2 of this Law, the salary used as the basis for mandatory social insurance contributions shall be prescribed by the Government;
2. d) For the subjects specified in points g, h, m, and n of Clause 1, Article 2 of this Law, the employee may choose the salary used as the basis for mandatory social insurance contributions, but the minimum salary shall be equal to the reference level and the maximum shall be 20 times the reference level at the time of contribution.

After at least 12 months of making social insurance contributions based on the chosen salary, the employee may choose a new salary used as the basis for social insurance contributions;

1. e) The minimum salary used as the basis for mandatory social insurance contributions shall be equal to the reference level and the maximum shall be 20 times the reference level at the time of contribution.
2. The income used as the basis for voluntary social insurance contributions must be at least equal to the poverty line standard for rural areas and at most 20 times the reference level at the time of contribution.
3. The Government shall provide detailed regulations for point b, clause 1 of this Article; and regulate the collection and retroactive payment of mandatory social insurance contributions.

=> According to the above regulations, the minimum salary used as the basis for mandatory social insurance contributions is equal to the reference level.

However, according to Article 5 of Decree 158/2025/ND-CP, it is stipulated that:

1. The reference level is the amount of money decided by the Government to calculate the contribution and benefit levels of certain social insurance schemes stipulated in the Social Insurance Law.
2. Until the basic salary level is abolished, the reference level stipulated in the Social Insurance Law is equal to the basic salary level. At the time the basic salary level is abolished, the reference level shall not be lower than that basic salary level.
3. When the base salary is abolished, the reference level will be adjusted by the Government based on the increase in the consumer price index, economic growth, in accordance with the capacity of the state budget and the social insurance fund.

=> Accordingly, the current reference level is the base salary, specifically 2,340,000 VND/month according to Decree 73/2024/ND-CP.

The minimum social insurance contribution level has changed, but why do employees still have to pay social insurance contributions equal to or higher than the regional minimum wage?

Based on Article 31 of the Social Insurance Law 2024, it is stipulated:

Basis for social insurance contributions

1. The salary used as the basis for mandatory social insurance contributions is regulated as follows:
2. b) For employees subject to the salary regime determined by the employer, the salary used as the basis for mandatory social insurance contributions is the monthly salary, including the salary according to the job or position, salary allowances and other supplementary amounts. Regular and stable payment agreements in each pay period.

In cases where an employee ceases work but still receives a monthly salary equal to or higher than the lowest mandatory social insurance contribution base salary, contributions will be based on the salary received during the period of cessation of work;

Articles 90 and 91 of the 2019 Labor Code stipulate:

Wages

1. Wages are the amount of money that the employer pays to the employee according to the agreement for performing work, including the salary according to the job or position, salary allowances and other supplementary payments.
2. The salary according to the job or position must not be lower than the minimum wage.
3. The employer must ensure equal pay, without discrimination based on gender, for employees performing work of equal value.

Minimum Wage

1. The minimum wage is the lowest wage paid to employees performing the simplest work under normal working conditions to ensure a minimum standard of living for the employee and their family, in accordance with the conditions. socio-economic development.
2. The minimum wage is established regionally and set on a monthly and hourly basis.
3. The minimum wage is adjusted based on the minimum living standard of workers and their families; the correlation between the minimum wage and market wages; the consumer price index, economic growth rate; the supply and demand for labor; employment and unemployment; labor productivity; and the ability of businesses to pay.
4. The Government shall provide detailed regulations for this Article; decide and announce the minimum wage based on the recommendations of the National Wage Council.

=> According to the above regulations, for employees whose salaries are determined by the employer, the salary used as the basis for compulsory social insurance contributions is the monthly salary, including the salary based on the job or position, salary allowances, and other supplementary payments agreed upon and paid regularly and stably in each pay period.

According to the 2019 Labor Code, the lowest monthly salary is the regional minimum wage. Therefore, full-time employees will have the lowest social insurance contribution based on the regional minimum wage.

What is the lowest salary used as the basis for social insurance contributions for part-time employees?

Based on Clause 1, Article 2 of the 2024 Social Insurance Law, it is stipulated that:

Subjects participating in compulsory and voluntary social insurance:

1. Employees who are Vietnamese citizens subject to compulsory social insurance include:
2. a) Employees working under indefinite-term labor contracts, fixed-term labor contracts with… a) A term of at least one month, including cases where the employee and employer agree using a different name but the content reflects paid work, wages, and management, operation, and supervision by one party;
3. l) The subjects specified in point a) of this clause who work part-time and whose monthly salary is equal to or higher than the lowest mandatory social insurance contribution base salary.

=> According to the above regulations, part-time employees will contribute to social insurance when their monthly salary is equal to or higher than the lowest mandatory social insurance contribution base salary. Therefore, the lowest social insurance contribution base salary for this group is the reference level, which is currently applied at 2,340,000 VND/month.