HOW YOUR SOCIAL INSURANCE SALARY AFFECTS YOUR FUTURE BENEFITS
17/07/2025
When accepting a new job, most people focus only on the net salary they receive and overlook a crucial detail: the salary on which social insurance (SI) is based. However, this is the number that directly affects your long-term benefits, both during your career and after retirement.
Statistics show that 90% of employees do not ask about their social insurance salary when taking a job offer. As a result, many are shocked later to find their actual benefits much lower than expected. So how does SI contribution affect you? Let’s explore the details below.
WHAT DOES “FULL SALARY SI CONTRIBUTION” MEAN?
A full salary SI contribution means both the employer and employee contribute to social insurance based on the employee’s total monthly earnings, including base salary, bonuses, allowances, and other compensation.
Current total SI contribution: 32% of total monthly salary (Employee contributes 10.5%, employer contributes 21.5%)
Example You earn 15 million VND/month – If the company contributes on the full salary → SI is based on 15 million – If not → SI may be based only on the base salary, such as 5 million
WHAT HAPPENS IF YOU DON'T CONTRIBUTE ON YOUR FULL SALARY?
Below are the direct impacts of under-reporting your salary for SI purposes:
1. Reduced sickness allowance
Sickness allowance is calculated as 75% of your SI salary in the month before your leave
Example You take 10 days off – Contributing on 15 million → receive about 4.3 million (VND) – Contributing on 5 million → receive about 1.4 million
2. Lower maternity benefits
Maternity allowance equals 100% of the average SI salary for the past 6 months, not your actual earnings
Example – Full contribution on 15 million → receive 90 million – Contribution on 5 million → receive 30 million → A difference of 60 million for the same childbirth
3. Retirement pension depends entirely on your declared salary
Pension = Benefit rate x Average monthly salary used for SI (Maximum rate is 75% if you contribute for enough years: 25 years for women, 35 years for men)
Example – Contribute an average of 20 million/month for 25 years → Pension: 15 million/month – If only contributing on 6 million → Pension is about 4.5 million/month
4. Lump-sum SI payout is lower if salary is under-reported
Formula: – (1.5 x Average monthly SI salary x Years before 2014) – + (2 x Average monthly SI salary x Years from 2014)
Example You contribute for 10 years: 3 years before 2014 and 7 years after 2014 Average salary used for SI: 12 million/month → → Lump-sum payout: 222 million VND
If only contributing on 5 million → payout is around 92.5 million VND → Nearly 130 million VND difference
FINAL THOUGHT: DON’T LOSE YOUR FUTURE BENEFITS BECAUSE YOU DIDN’T ASK TODAY
Social insurance is not just a legal requirement – it is a long-term asset for your future. So, be proactive:
Ask about the SI salary when receiving a job offer
