According to this Circular, pay rates of the month of completion of payment of compulsory social insurance contributions specified in clause 1 of Article 1 in Circular No. 23 will be adjusted according to the following formula:
Monthly pay rate used as a basis for payment of social insurance contribution after adjustment for each year = Total monthly pay rate used as a basis for payment of social insurance contributions in each year x indexing factor for the respective year.
In this formula, the indexing factor for the respective year which is adopted from earlier than 1995 to 2021 is specifically regulated under clause 1 of Article 2 in the Circular No. 23, including:
- Year 2015: 1.17.
- Year 2016: 1.14.
- Year 2017: 1.10.
- Year 2018: 1.06.
- Year 2019: 1.03.
- Year 2020: 1.00.
- Year 2021: 1.00.
For more details, please see the Circular No. 23/2020/TT-BLDTBXH (in force as from February 15, 2021, and regulations of this Circular will be applied as from January 1, 2021).
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