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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.
17/LDTBXH-TT
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Hanoi,
April 24, 1997,
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CIRCULAR
GUIDING
THE IMPLEMEN-TATION OF THE COMPULSORY SOCIAL INSURANCE REGIME FOR LABORERS ON
DEFINITE TERM WORKING CONTRACTS ABROAD
Pursuant to the Labor Code,
the Social Insurance Regulation issued together with Decree No. 12-CP of
January 26, 1995 and Decree No. 07-CP of January 20, 1995 of the Government on
the sending of Vietnamese laborers to work for definite terms abroad; the
Ministry of Labor, War Invalids and Social Affairs hereby provides the
following guidance for the implementation of the compulsory social insurance
regime applicable to such persons:
I. APPLICABLE OBJECTS
The persons covered by the
social insurance regime in this Circular are laborers working for definite
terms abroad in accordance with the provisions of Decree No. 07-CP of January
20, 1995 of the Government, including:
- Skilled (including experts)
and unskilled workers;
- Graduates of vocational
schools in the country and abroad;
- Laborers working in
enterprises of all economic sectors, in administrative and non-business units
and social organizations.
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1. Scope of regulation.
The pension and death allowance
regime shall be applied in accordance with the provisions in Section IV and
Section V, Chapter II of the Social Insurance Regulation issued together with
Decree No.12-CP of January 26, 1995 of the Government and Circular
No.06/LD-TBXH of April 4, 1995 of the Ministry of Labor, War Invalids and
Social Affairs guiding the implementation of Decree No.12-CP of the Government.
2. Payment of social insurance
premiums.
a/ Source of social insurance
premiums:
Throughout his/her working term
abroad, the laborer shall have to deduct his/her monthly salary or wage to pay
social insurance premiums.
b/ Levels of monthly social
insurance premiums to be paid:
+ A laborer who has taken part
in the compulsory social insurance system in Vietnam shall pay his/her social
insurance premium equal to 15 per cent of his/her monthly salary or wage before
he/she left to work abroad. This salary may be based on his/her rank or, grade
or his/her contractual salary and includes the difference between the actual
and paid salaries, the rank allowances, area allowances, and cost-of-living
allowances (if any).
For example: A ship captain
before working for a definite term abroad already paid in Vietnam social
insurance premiums based on his/her salary as stipulated in Decree No. 26-CP of
May 23, 1993 of the Government, i.e. 3.45 times the minimum salary and a rank
allowance of 0.4%. When working abroad he/she shall pay a monthly social
insurance premium based on the following salary:
- Base salary: 3,45 x 144,000
VND = 496,800 VND
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Total = 554,400 VND
The monthly social insurance
premium to be paid is: 554,400 VND x 15% = 83,160 VND
+ A laborer who has never paid
compulsory social insurance premiums in Vietnam or who has worked and paid
social insurance premiums in Vietnam but already received the fringe benefit
therefrom shall pay a monthly social insurance premium equal to 15% of double
the minimum salary of a State employee (144,000 VND now).
For example: An unemployed
laborer who has signed a definite term contract to work abroad shall have to
pay a monthly social insurance premium over the whole period he/she works
abroad as follows:
(144,000
VND x 2) x 15% = 43,200 VND/month
+ The social insurance premiums
calculated on the basis of the salary or double the minimum salary shall be
adjusted proportionally with the adjustment of the minimum salary for State
employees in Vietnam.
c/ How to pay social insurance
premiums
+ A Vietnamese economic
organization which sends laborers to work abroad shall have to collect social
insurance premiums paid by the laborers and remit them to the Vietnamese social
insurance agency in the locality where its head office is located and record
them in the laborers social insurance books, certified by the economic
organization and the social insurance agency.
+ Social insurance premiums
shall be paid every six months. The first payment shall be made at the end of
the sixth month after the laborer starts to work abroad; the schedule of
subsequent payments shall be set by the concerned economic organization to suit
its labor management conditions. The laborer shall have to pay fully his/her
monthly social insurance premium for all the months of his/her work abroad.
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The period for which the laborer
working abroad has paid social insurance premiums shall be counted for the
laborer to enjoy social insurance:
a/ After returning home, if the
laborer is eligible for the pension regime, he/she shall enjoy such regime in
accordance with the Social Insurance Regulation issued together with Decree No.
12-CP of the Government and Circular No. 06/LD-TBXH guiding the implementation
thereof.
b/ After returning home, if the
laborer is not eligible for the pension regime as defined in Articles 25 and 26
of the Social Insurance regulation and discontinues working, he/she shall
either enjoy the lump-sum allowance or wait until he/she is eligible for the
pension regime as prescribed in Article 28 of the Social Insurance Regulation.
c/ After returning home, if the
laborer continues working and paying social insurance premiums, the period
covered by his/her social insurance abroad shall be added to the period covered
by his/her social insurance in Vietnam for the enjoyment of social insurance.
d/ If the laborer dies during
his/her working term abroad for which he/she already paid social insurance
premiums, he/she shall be eligible for the death allowance in accordance with
the Social Insurance Regulation issued together with Decree No. 12-CP of the
Government and Circular No. 06/LD-TBXH guiding the implementation of the Social
Insurance Regulation.
The pension, lump-sum allowance
or death allowance related to the salary during the period of the laborers work
abroad shall be based on the different wage levels for which social insurance
premiums have been paid abroad as defined in Part b, point 2, Section II of
this Circular. These wage levels may be adjusted according to the minimum wage
of State employees at the time the pension or lump-sum allowance regime is
applied.
III. ORGANIZATION OF
IMPLEMENTATION
1. A Vietnamese economic
organization sending a laborer to work abroad shall have to certify and manage
his/her dossier and insurance books during the period they work abroad.
The dossier managed by the
economic organization shall include:
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- The original dossier which
clearly describes his/her work record, certified by the labor-employing agency
or unit.
- The social insurance book
which clearly describes the laborers work record and payment of social
insurance premiums before he/she goes to work abroad.
- The decision to send the
laborer for definite term work abroad or his/her working contract.
b/ For a laborer who has never
paid social insurance premiums in Vietnam, the economic organization shall draw
up a complete dossier and request the Vietnam Social Insurance organization to
issue the social insurance book. It shall manage such dossier and insurance
book for the laborer for the whole period of his/her work abroad.
When it ceases its operation the
economic organization which sends the laborer to work abroad shall have to hand
over all the dossiers relating to social insurance of the laborer under its
management to the social insurance agency where the economic organization pay
social insurance premium.
When the laborer returns to
Vietnam, the managing economic organization shall have to make a dossier for
him/her to enjoy social insurance or return the dossier and social insurance
book to him/her so that he/she can register their payment of social insurance
premiums at another agency or unit.
2. The Vietnam Social Insurance
shall issue the social insurance book, organize the collection of social
premiums paid by the laborer working abroad through the economic organization
and apply the pension, the lump-sum allowance or the death allowance regime for
the laborer in accordance with the Social Insurance Regulation issued together
with Decree No. 12-CP of January 26, 1995 of the Government.
If the laborer violates the
social insurance regulations, he/she shall be dealt with in accordance with the
provisions in Chapter VI of the Social Insurance Regulation issued together
with Decree No. 12-CP of January 26, 1995.
3. If the laborer in the
category specified in Decree No. 370-HDBT of November 9, 1991 of the Council of
Ministers (now the Government) and Decree No. 07-CP of January 20, 1995 of the
Government has worked abroad and paid social insurance premiums as prescribed
by the State before the effective date of this Circular, the time he/she worked
abroad and paid social insurance premiums shall be accounted for so that he/she
may enjoy the pension, lump-sum allowance or death allowance according to this
Circular.
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- Certify the time the returning
laborer, who has worked and paid social insurance premiums abroad to serve as
the basis for the Vietnam Social Insurance organization to calculate the
appropriate social insurances.
- Fill the procedure of issuing
social insurance book to the laborer, writing therein the amount of monthly
social insurance premium to be paid and manage such book.
IV. IMPLEMENTATION PROVISIONS
1. This Circular takes effect 15
days after its signing. The earlier provisions which are contrary to this
Circular are now annulled.
2. Any problem arising during
the process of implementation should be reported to the Ministry of Labor, War
Invalids and Social Affairs for consideration and settlement.
THE
MINISTRY OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS MINISTER
Tran Dinh Hoan