To adjust monthly salary, income after payment of social insurance contributions

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On December 26, 2018, the Ministry of Labor, War Invalids and Social Affairs issues the Circular No. 35/2018/TT-BLDTBXH on prescribing indexation rate of monthly salary and income after payment of social insurance contributions.

Accordingly, from January 01, 2019, monthly salary after payment of social insurance contributions of employees who are subject to the pay scheme under the State’s regulations started participating in social insurance programs from January 01, 2016, employees who pay social insurance contributions according to the pay scheme decided by employers… are adjusted as following:

Indexed monthly salary after payment of social insurance contributions in each year equals “Total monthly salary after payment of social insurance contributions in each year” multiplies with “Indexation rate of monthly salary after payment of social insurance contributions in the corresponding year.”

In this formula, indexation rate of 2016, 2017, 2018, and 2019 is 1.07; 1.04; 1.00 and 1.00 respectively.

This Circular takes effect on February 15, 2019; provisions of this Circular shall apply from January 01, 2019.