Ask:
Employees who worked from 1999 to 2005 are paid by the company and pay social insurance in USD, and are expected to retire in November 2021. So what is the USD/VND exchange rate applied to calculate salary for social insurance contributions during the above period?
Reply:
Pursuant to Article 26 of Decree 115/2015/ND-CP dated January 11, 2015 of the Government detailing a number of articles of the Social Insurance Law on compulsory social insurance, although the company pays social insurance in USD, pensions are still paid. Calculated based on the average monthly salary paid for social insurance in Vietnamese currency, monthly salary paid for social insurance from 1999 to 2005 is converted at the average exchange rate on the interbank foreign currency market published by the State Bank of Vietnam. announced at the time of January 2 for the first 6 months of the year, and July 1 for the last 6 months of the year.
In addition, the salary paid for social insurance as a basis for calculating the average monthly salary paid for social insurance for employees paying social insurance according to the salary regime decided by the employer is adjusted on the basis of the price index. consumption of each period according to the Government’s regulations specified in Clause 2, Article 63 of the Law on Social Insurance.
