When calculating social insurance contributions, not all allowances that employees receive are included in the salary base for SHUI (Social, Health and Unemployment Insurance). Knowing which allowances are subject to contributions and which are exempt helps both employers and employees avoid mistakes and ensures the best protection of their rights.
Allowances subject to SHUI contributions usually include:
- Position and title allowances
- Responsibility allowances
- Hazardous, heavy, or toxic work allowances
- Seniority allowances
- Regional, mobility, and attraction allowances
- Other similar types of allowances
Allowances exempt from SHUI contributions under the latest regulations include:
- Performance-based bonuses (based on work results or business outcomes)
- Innovation bonuses
- Meal allowances
- Support for fuel, phone, transportation, and housing
- Childcare and child-rearing support
- Allowances for employees with relatives who have passed away or gotten married
- Birthday allowances for employees
- Support for employees facing difficulties due to work accidents or occupational diseases
- Other support or allowances clearly agreed upon in labor contracts or separate agreements
For example:
If you receive a basic salary of 6 million VND, a position allowance of 2 million VND, and a meal allowance of 700,000 VND, the SHUI contributions will be calculated on 8 million VND (basic salary + position allowance). The meal allowance is exempt from SHUI contributions.
Click HERE to see more about Social Insurance in Vietnam.
If you have any further concerns, our professional team always here to help you understand more about anything related to labour and human resources management.
Contact NetViet – Vietnam’s leading HR and payroll expert – for quick and accurate advice and the latest social insurance regulations.
Follow NetViet for the latest industry updates and more:
- Phone: +84 28 6261 7310
- Email: info@netviet.com.vn
- Website: www.netviet.com.vn
- Facebook | LinkedIn | Twitter
