THE
MINISTRY OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
12/2001/TT-BLDTBXH-TT
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Hanoi,
December 19, 2001
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CIRCULAR
GUIDING THE
RETIREMENT AGE OF PIT COAL MINERS
In furtherance of the Government’s Decree
No.61/2001/ND-CP of September 7, 2001 prescribing the retirement age of pit
coal miners, after consulting with Vietnam Labor Confederation and a number of
concerned agencies, the Ministry of Labor, War Invalids and Social Affairs
hereby guides the implementation thereof as follows:
I. APPLICATION SCOPE AND OBJECTS
1. This Circular shall apply to enterprises
engaged in pit coal mining, including:
- State enterprises subject to the Law on State
Enterprises;
- Foreign-invested enterprises subject to the
Law on Foreign Investment in Vietnam;
- Enterprises subject to the Law on Enterprises.
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- Exploitation of coal in pits;
- Transportation of coal, earth and rock in
pits;
- Operation of drilling machines in pits;
- Blasting in pits;
- Digging of pits for coal exploitation.
II. RETIREMENT CONDITIONS AND ENTITLEMENT
REGIME
1. Conditions:
The objects defined in Section I above, if fully
meeting the following conditions, shall be entitled to retirement regime:
a/ Being aged full 50 years;
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2. Retirement entitlement regime:
a/ Pension levels:
Article 2 of Decree No.61/2001/ND-CP prescribes:
Monthly pension levels applicable to laborers who were once engaged in pit coal
mining shall be calculated according to the general provisions of the Government’s
Decrees No.12/CP of January 26, 1995 and No.93/1998/ND-CP of November 12, 1998,
concretely as follows: For those who have paid social insurance premiums for
full 15 years, pension shall be equal to 45% of the average monthly wage which
serves as basis for social insurance premium payment in five consecutive years
with the highest wage level. For each additional year of social insurance
premium payment, 2% shall be added to the said percentage, but the maximum
pension level must not exceed 75% of the average monthly wage which serves as
basis for payment of social insurance premiums in five consecutive years with
the highest wage level.
a.1/ The calculation of pensions shall be made
as follows:
Those who have paid social insurance premiums
for full 15 years shall enjoy a pension equal to 45% of the average monthly
wage which serves as basis for social insurance premium payment. For each year
(12 months) more, 2% shall be added to that percentage, which, however, must
not exceed 75% of the average monthly wage which serves as basis for social
insurance premium payment. In addition to monthly pension, retired laborers,
who have paid social insurance premiums for more than 30 years, shall also
enjoy a lump-sum allowance, which is calculated as follows:
For each year (12 months) of paying social
insurance premium from the 31st year onward, the pensioners shall be entitled
to half of the average monthly wage which serves as basis for social insurance
premium payment, but such a lump-sum allowance must not exceed 5 months wage.
Example 1: Mr. Hoang Dinh Q reached the age of
50 in January 2001, and had paid the social insurance premium for 28 years, of
which 15 years for working as a pit coal miner. Mr. Q’s pension level shall be
calculated as follows:
For the first 15 years: The pension shall be
equal to 45% of his average monthly wage which serves as basis for social
insurance premium payment
For the period from the 16th year to the 28th
year:
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Total: 45% + 26% = 71%
So, Mr. Q’s pension shall be equal to 71% of his
average monthly wage which serves as basis for social insurance premium
payment.
Example 2: Mr. Le Huu X reached the age of 50 in
January 2001, and had paid the social insurance premium for 32 years, of which
15 years of working as a pit coal miner. Mr. X�s pension level shall
be calculated as follows:
For the first 15 years: The pension shall be
equal to 45% of his average monthly wage which serves as basis for social
insurance premium payment
For the period from the 16th year to the 30th
year:
15 years x 2%/year = 30%
Total: 45% + 30% = 75%
For 2-year period from the 31st year to the end
of 32nd year, Mr. X shall be entitled to a lump-sum allowance equal to the
monthly wage which serves as basis for social insurance premium payment.
In this case, Mr. X’s monthly pension level
shall be equal to 75% of his average monthly wage which serves as basis for
social insurance premium payment.
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Average level
of monthly wage which serves as basis for the social insurance premium
payment
=
Total amount of
wage which serves as basis for social insurance premium payment for
consecutive 60 months(5 years) with the highest wage level
60 months
Example 3: Mr. Tran Van D reached the age
of 50 in January 2001, and had paid the social insurance premium for 26 years
and 10 months, of which 17 years for working as a pit coal miner. During his
working period, he paid social insurance premiums according to the following
wage levels:
- From March 1975 to December 1999, he
continuously worked as a pit coal miner and enjoyed different wage levels
during the following periods:
+ From March 1975 to the end of June 1979, he
enjoyed grade-1 wage of 50 dong, which was converted into 352 dong under Decree
No.235/HDBT of September 18, 1985; and converted under Decree No.26/CP of May 23,
1993 with a coefficient of 1.62 (new grade 1);
+ From July 1979 to the end of June 1984, he
enjoyed grade-2 wage of 59.6 dong, which was converted into 375 dong under
Decree No.235/HDBT; and converted under Decree No.26/CP with a coefficient of
1.92 (new grade 2);
+ From July 1984, he enjoyed grade-3 wage of
70.9 dong, which was converted into 399 dong in September 1985 under Decree
No.235/HDBT and enjoyed until June 1988; and converted under Decree No.26/CP
with a coefficient of 2.28 (new grade 3);
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+ From July 6, 1993 to the end of June 1996, he
enjoyed grade-5 wage with a coefficient of 3.58;
+ From July 1996 to the end of December 1999, he
enjoyed grade-6 wage with a coefficient of 4.24.
- From January 2000 to the end of December 2001,
he was transferred to work as a pit railway repairer and enjoyed a wage
coefficient of 3.45 (grade 7, group II, wage scale A6 for capital construction
domain).
The average monthly wage to serve as basis for
social insurance premium payment in five consecutive years with the highest
wage level shall be calculated from January 1995 to the end of December 1999,
more concretely:
- From January 1995 to the end of June 1996:
18 months x (3.58 x 210,000 dong) = 13,532,400
dong.
- From July 1996 to the end of December 1999:
42 months x (4.24 x 210,000 dong) = 37,396,800
dong.
Average level
of monthly wage which serves as basis for social insurance premium payment
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13,532,400 dong
+ 37,396,800 dong
60 months
=
848,820 dong
Example 4: Mr. Phan Van N had a working
period of 24 years, of which 16 years for working as a pit coal miner, will
fully meet the retirement conditions in April 2002, and was transferred to
different jobs through periods with the following different wage levels:
- From April 1978 to the end of December 1981,
he worked as a pit coal miner with grade-1 wage of 50 dong, which was converted
into 352 dong under Decree No.235/HDBT, and converted under Decree No.26/CP
with a coefficient of 1.62 (new grade 1);
- From January 1982 to the end of August 1985,
he worked as a pit coal miner with grade-2 wage of 59.6 dong, which was
converted into 375 dong under Decree No.235/HDBT, and converted under Decree
No.26/CP with a coefficient of 1.92 (new grade 2);
- From September 1985 to the end of December
1989, he worked as a pit coal miner with grade-3 wage of 399 dong, which was
converted under Decree No.26/CP with a coefficient of 2.28 (new grade 3);
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- From January 1993 to the end of December 1995,
he worked as a pit coal miner with grade-5 wage of 462, which was converted
under Decree No.26/CP with a coefficient of 3.58 (new grade 5);
- From January 1996 to the end of December 1999,
he was transferred to work as a security personnel and enjoyed a wage
coefficient of 2.92 (grade 5, wage frame B.16, wage table for workers and
employees directly engaged in production, business or service).
- From January 2000 to the end of March 2002, he
returned to work as a pit coal miner with a wage coefficient of 3.58 (grade 5).
So, though Mr. N enjoyed the highest wage
coefficient of 3.58 in two periods (from January 1993 to December 1995 and from
January 2000 to March 2002), but he shall not have the wage levels of these two
periods aggregated for calculating the average wage level because these two
periods are not consecutive. In this case, the average monthly wage level to
serve as basis for social insurance premium payment in 5 consecutive years with
the highest wage level shall be calculated for the period from January 1991 to
the end of December 1995:
- From January 1991 to the end of December 1992,
the wage shall be calculated according to coefficient of 3.01;
- From January 1993 to the end of December 1995,
the wage shall be calculated according to coefficient of 3.58.
Concretely as follows:
- From January 1991 to the end of December 1992:
24 months x (3.01 x 210,000 dong) = 15,170,400 dong.
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36 months x (3.58 x 210,000 dong) = 27,064,800
dong.
Average level
of monthly wage which serves as basis for social insurance premium payment
=
15,170,400 dong
+ 27,064,800 dong
60 months
=
703,920 dong
(Wages mentioned in the above examples are
calculated on the basis of the current minimum wage level prescribed in the
Government’s Decree No.77/2000/ND-CP of December 15, 2000).
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3. In cases where a laborer is already aged full
50 years, lacks 5 years of social insurance premium payment and still has a
good health, he/she may continue working until he/she fully meets the
retirement conditions, but not beyond the age of 55, concretely as follows:
a/ A laborer, who had full 15 years or more
working as a pit coal miner, but had paid the social insurance premium for less
than 20 years, and still has a good health, may continue working and pay social
insurance premium until the full 20 years of social insurance premium payment.
Example 5: By January 1, 2002, Mr. Nguyen
Van A will reach full 50 years of age and has paid social insurance premium for
17 years, of which 15 years for working as a pit coal miner. If he still has a
good health, he may continue working and pay social insurance for three more
years to complete the social insurance premium payment duration of 20 years,
then he shall be entitled to the retirement regime.
b/ A laborer, who has worked as a pit coal miner
for less than 15 years but has paid social insurance premium for full 20 years
and still has a good health, may continue working as a pit coal miner until the
full 15 years of working to enjoy the retirement regime.
Example 6: By January 1, 2002, Mr. Ha Van
B will reach full 50 years of age and has paid social insurance premium for 21
years, of which 14 years for working as a pit coal miner. If he still has a
good health, he may continue working as a pit coal miner and pay social
insurance premium for one more year to complete the working period of full 15
years before being entitled to the retirement regime.
c/ A laborer, who has neither paid social
insurance premium for full 20 years nor worked as a pit coal miner for full 15
years yet, but still has a good health, may continue working until the
above-said two conditions are fully met before enjoying the retirement regime.
Example 7: By January 1, 2002, Mr. Nguyen
Van C has reached full 50 years of age and paid social insurance premium for 16
years, of which 13 years for working as a pit coal miner. If he still has a
good health, he may continue working and pay social insurance premium for 4
more years to meet the condition of 20 years of social insurance premium
payment, of which at least 2 more years for working as a pit coal miner to meet
the condition of 15 years of working as a pit coal miner. Then he shall be
entitled to the retirement regime.
Pension levels and other social insurance
regimes for the cases specified at Point 3 shall be calculated like those at
Point 2, Section II above.
III. ORGANIZATION OF IMPLEMENTATION
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2. Vietnam Social Insurance shall have to guide
the provincial/municipal Social Insurance offices in realizing, receiving
dossiers and promptly settling the social insurance regime for laborers in
strict compliance with regulations. Written guidance shall be sent to the
Ministry of Labor, War Invalids and Social Affairs for monitoring and
inspection.
3. The provincial/municipal Services of Labor,
War Invalids and Social Affairs shall coordinate with the local Labor
Confederation chapters and Social Insurance offices in guiding, examining and
inspecting the implementation of the retirement regime to laborers in their
localities strictly according to the provisions of this Circular.
4. This Circular takes effect as from January 1,
2002.
The re-calculation of the retirement
entitlements for subjects who have been enjoying such regime since before the
effective date of this Circular shall not be considered and settled.
Any problems arising in the course of
implementation should be reported to the Ministry of Labor, War Invalids and
Social Affairs for study and solution.
MINISTER OF LABOR, WAR INVALIDS
AND SOCIAL AFFAIRS
Nguyen Thi Hang