The Social Insurance Law 2024 defines the reference level as an amount the government determines for calculating contributions to and benefits from certain social insurance schemes. This reference level adjusts based on increases in the consumer price index (CPI), economic growth, and alignment with the state budget and the Social Insurance Fund.

Currently, before the base salary is abolished, the reference level equals the base salary and will not be lower than it at the time of abolition. For instance, the current base salary is 2,34 million VND; it is set to increase to 2,53 million VND from 1/7, with the social insurance reference level for contributions and benefits adjusting accordingly. In practice, the reference level remains closely tied to the base salary.

Officials retrieving records and processing procedures for citizens at Hai Phong City's Public Administration Service Center, 5/2026. Photo: Le Tan

In the draft Law amending and supplementing certain articles of the Social Insurance Law, the Ministry of Home Affairs proposes abolishing the regulation that the reference level equals the base salary. "The aim is to delink the reference level from the base salary," the drafting committee stated.

As the specific timing for abolishing the base salary has not been determined, the Ministry of Home Affairs proposes empowering the government to regulate the periodic adjustment time for the reference level in line with pension increases, as well as the adjustment level for the reference to calculate social insurance contributions and benefits.

Explaining this proposal, the Ministry of Home Affairs cited Central Resolution 27 of 2018, which outlined the roadmap to abolish the base salary but remains unimplemented. Consequently, when the government adjusts the base salary and increases pensions at different rates, for example, on 1/7/2024, the base salary increased by 30% from 1,8 million to 2,34 million VND, while pensions only increased by 15%. This led to disparities in public sector pensions before and after the adjustment. Specifically, those who retired before 1/7/2024 received a 15% increase, while those who retired after benefited from higher amounts based on the new base salary.

If the proposal gains approval, the reference level and the base salary will adjust independently. An increase in the base salary will not necessarily mean a proportional increase in the reference level. The government will proactively adjust the reference level to align with the rate of pension increases and social insurance policies, aiming to limit significant discrepancies in pension amounts for individuals retiring at different times due to base salary adjustments.

The draft law is expected to be submitted to the National Assembly for feedback and approval during its October session and will take effect from 1/3/2027.

Hong Chieu