Prominent regulations effectuated from mid-February 2016

1. Monthly salary as the basis for contributing social insurance premium in 2016

Circular No. 59/2015/TT-BLDTBXH , coming into force as of 15 February 2016, regulates details and guidelines for the enforcement of compulsory social insurance articles of the Law on social insurance.

From 01 January 2016 to 31 December 2017, the monthly salary as the basis for contributing social insurance premium consists of the salary and allowances according to Section 1 and Point a, Section 2, Article 4 of the Circular No. 47/2015/TT-BLĐTBXH .

According to the Circular No. 59/2015/TT-BLĐTBXH , the monthly salary as the basis for contributing social insurance premium is not composed of other benefits such as:

- Bonuses according to Article 103 on innovative bonus in the Labor Law.

- Meal break allowance

- Allowances for fuel, telephone, commutation, residence, babysitting, raising small children.

-  Benefits for workers’ birthday and for workers whose family members pass away or get married or who face difficulties due to occupational accidents or diseases.

- Other allowances and benefits as separately specified in the labor contract according to Section 11, Article 4, Decree No. 05/2015/NĐ-CP .

2. Adjustment rate of salaries on which social insurance has been contributed in 2016

On December 29th 2015, Ministry of Labor, Invalids and Social affairs issues the Circular No. 58/2015/TT-BLĐTBXH on regulating the adjustment rate for monthly salary and remunerations on which social insurance has been contributed. Details are:

- Tablet 1 in Article 2 of this Circular regulates the adjustment rate of salaries on which social insurance has been contributed in the corresponding year.

- Details are:

- Tablet 2 in Article 3 of this Circular regulates the adjustment rate of salaries on which social insurance has been contributed in the corresponding year.

Circular No. 58/2015/TT-BLĐTBXH takes effect as of 15 February 2016.

Regulations of this Circular are applicable as of 01 January 2016.

3. Latest guideline on participants in medical insurance

The joint Circular No. 09/2015/TTLT-BCA-BYT-BTC provides guidelines for the implementation of medical insurance for workers, students, family members of commissioned and non-commissioned officers and servicepersons in the People’s Police force (referred to as police force). It regulates the following participants in medical insurance:

- Workers and local police units cover medical insurance for:

+ Citizens drafted before recruited into the police force.

+ Non-sworn workers in the police force

+ Workers contracted permanently or for at least 3 months.

- State budget covers medical insurance for:

+ Family members of active commissioned and non-commissioned officers, enlisted servicepersons, student police cadets pursuing education in schools inside and outside the police force and receiving daily allowances from state budget (See details in Point a, Section 2, Article 3).

+ Students in police academies

+ Foreign students pursuing education in police academies and receiving scholarship from state budget.

- Civil students pursuing education in police academies and receiving medical insurance premium from state budget.

Joint Circular No. 09/2015/TTLT-BCA-BYT-BTC takes effect as of 11 February 2016.

4. Supportive housing for financially challenged households

Circular No. 08/2015/TT-BXD regulates the requirements for entities offered with supportive housing:

- Financially distressed households registered as permanent residents and stated in communal People’s Committee’s list of households with financial difficulties upon the effect of the Decision No. 33/2015/QĐ-TTg.

- Independent households that have existed for at least 5 years from their establishment to the effective date of Decision No. 33.

- Households owning no properties or possessing a poorly built or dilapidated residence prone to collapse but being incapable of house renovation.

- Households having not received housing grants from other government's supporting campaigns or schemes or other political and social organizations;

Households granted supportive housing that has collapsed or has been severely damaged and prone to collapse due to natural disasters such as storm, flood, earthquake, landslide, or fire, without financial resources for renovation or reconstruction;

Households granted supporting housing for at least 8 years to the effective date of Decision No. 33, which has been severely dilapidated and prone to collapse.

Circular No. 08/2015/TT-BXD takes effect as of 16 February 2016.

5. Medical treatment liability insurance

Circular No. 210/2015/TT-BTC , effectuated as of 15 February 2016, regulates public health facilities’ purchase, through state budget’s subsidy, of medical treatment liability insurance (referred to as liability insurance).

State budget’s subsidy on liability insurance purchase = Basic/unit/annual premium + supplementary fee per person per year x quantity of medical practitioners at health facilities. Including:

- Basic/unit/annual premium and supplementary fee per person per year are stipulated in Section 2, Article 3, Circular No. 210/2015/TT-BTC .

- The yearly quantity of medical practitioners at public health facilities must not exceed the number set by competent authorities as per the laws.

6. Counseling on taxes levied on household businesses

According to the Circular No. 208/2015/TT-BTC , a communal tax advisory council is responsible for providing a Tax department with counsels on tax rate levied on local household businesses paying lump-sum tax. Details are:

- Counsels on anticipated revenues and tax rate for household businesses paying invariable taxes from the start of a year, such as household businesses not incurring value added tax or personal income tax or household businesses incurring taxes.

- Counsels on anticipated revenues and tax rate for household businesses initiating new operations or executing business changes in the year.

- Counsels on tax exemption and deductibles for household businesses.

- The tax advisory committee provides counsels according to the said missions upon the tax authorities’ request of such counsels.

- The tax advisory council is operated by collective discussion and majority rule. If a deadlock occurs, the chairperson of the tax advisory council holds the casting vote.

Circular No. 208/2015/TT-BTC takes effect as of 11 February 2016 and nullifies the Decision No. 68/2007/QĐ-BTC.

7. Presentation, assessment and approval of the selection of contractors

On December 21st 2015, the Ministry of Planning and Investment issues the Circular No. 23/2015/TT-BKHĐT on detailing the bid document assessment reporting.

Details are:

- The single-stage one-envelop bidding procedure:

The bid solicitor presents the contractor ranking list to the investor for the latter’s approval according to the specialists’ bid document assessment report.

- The single-stage two-envelop bidding procedure:

+ The bid solicitor presents the list of contractors satisfying technical requirements to the investor for the latter’s approval according to the specialists’ bid document assessment report with technical recommendations.

The list of contractors satisfying technical requirements must be examined prior to the investor’s ratification. 

+ The bid solicitor presents the contractor-ranking list to the investor for the latter’s approval according to the specialists’ bid document assessment report with financial recommendations.

- In consideration of the contractor rankings and contract negotiations, the bid solicitor presents the contract selection result to the investor for the latter's appraisal and approval.

Circular No. 23/2015/TT-BKHĐT takes effect as of 15 February 2016.