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THE
MINISTRY OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS - THE MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No:
21-LB/TT
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Hanoi,
June 18, 1994
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JOINT MINISTERIAL CIRCULAR
PROVIDING GUIDANCE FOR THE IMPLEMENTATION OF THE COMPULSORY
SOCIAL INSURANCE REGIMES
In implementation of Decree
No. 43-CP on the 22nd of June, 1993 of the Government setting temporary
provisions for the social insurance regimes; and after consultation with the Vietnam
General Confederation of Labor and the concerned offices, the Ministry of
Labor, War Invalids and Social Affairs, and the Ministry of Finance jointly
issue the following guidance for the implementation of the compulsory social
insurance regimes:
A. OBJECTS OF
REGULATION:
The objects, who are compelled
to buy in full the five regimes of social insurance stipulated in Point 1,
Article 2 of Decree No. 43-CP on the 22nd of June, 1993 of the Government,
include:
I. STATE
OFFICIALS AND EMPLOYEES IN ADMINISTRATIVE AND SPECIALIZED SERVICES
1. Elected personnel in State
management agencies and offices of the Party and people's organizations from
central to district levels;
2. State officials and employees
working in State management agencies and specialized bodies of the State from
central to district levels;
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4. State officials and employees
on assignment to communes, wards, Associations, projects and international
organizations based in Vietnam.
II. WORKERS AND
EMPLOYEES IN ENTERPRISES, AND LABORERS IN OTHER ORGANIZATIONS
1. Workers and employees working
in State enterprises, including business and service organizations of the
administrative or specialized agencies and units, the armed forces and the
Party, people's organizations and Associations;
2. Workers and employees working
in economic units of specialized agencies;
3. Laborers who work for salary
or pay in units of production, business or service in the non-State sector
which employ 10 work-hands or more;
4. Vietnamese laborers in export
processing zones or exclusive economic zones, joint ventures, enterprises with
foreign invested capital, diplomatic missions, representative offices of
international organizations or other organizations of foreigners in Vietnam.
The provisions stipulated in
Part A include people who are sent for training, practice, business or medical
treatment at home or abroad, etc.
B. REGIMES OF
SOCIAL INSURANCE
I. SICKNESS
ALLOWANCE
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Laborers who take leave of
absence for sickness or accidents; women laborers who have the first or second
child (including legally adopted child) or, in special cases stipulated in
Decision No.162-HDBT of the 18th of October, 1988 of the Council of Ministers
(now the Government), the third child under 72 months of age caught by sickness
which is certified in writing by the clinic of their agencies or units, or by
the medical station of their communes or wards, or by a hospital or consulting
room under the management of the health service.
In the event that the mother
dies; or is seriously crippled; or suffering from metal disorder; or has been
sick for a longtime; or is away from home on business; or in the event of a
divorce in which the child lives with the father, the father may take leave of
absence and enjoy social welfare to take care of the sick child.
The sickness allowance shall not
apply to leaves which are due to self-debilitation, fist-fighting, alcoholism,
or drug abuse.
2. The time a laborer may take
for leave of absence and receive sickness allowance in replacement of salary:
a) For employees who work in
normal conditions:
- 30 days in a year, if he/she
has bought social insurance for less than 15 years;
- 45 days in a year, if he/she
has bought social insurance for 15 years or more.
b) An employee who works in
heavy or hazardous occupations or jobs (listed as heavy and hazardous
occupations and jobs by the State):
- 40 days in a year, if he/she
has bought social insurance for less than 15 years;
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c) An employee, who suffers from
a disease which requires long hospitalization, is entitled to social insurance
for, at most, 180 days in a year, irrespective of the length of time covered by
social insurance. In the event that the employee must continue his/her medical
treatment after this maximum time allowance, during this extended period of
time, he/she shall be entitled to a social insurance equal to 70% of the
minimum wage level for State employees (hereafter referred to as minimum wage).
The list of diseases which require long treatment, is provided for in Joint
Circular No.33-TT/LB on the 25th of June, 1987 of the Ministry of Health and
the Vietnam General Confederation of Labor.
d) For an employee who has to
take care of his/her sick child:
- 15 days in a year for a child
of less than 36 months of age;
- 12 days in a year for a child of
from 36 months to 72 months of age.
3. The allowance:
The sickness allowance to be
paid in replacement of the salary of an employee is equal to 75% of the salary
on which he/she buys his/her social insurance prior to the leave.
II. MATERNITY
ALLOWANCE
1. Conditions for the allowance:
All women laborers who are
pregnant or give birth to their first, second and, in special cases under
Decision No.162-HDBT, third child.
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a) During the pregnancy:
- The laborer is allowed three
leaves on allowance for pre-natal checks, each for one day.
- The expectant laborer who
works in a mountainous or island area far from a health station, who is sick or
whose pregnancy is abnormal, is allowed two days for each leave on allowance
for pre-natal checks.
- The laborer who suffers from a
miscarriage, is allowed 20 days of leave on allowance if the pregnancy is less
than 3 months old, or 30 days if the pregnancy is 3 months old or more.
b) Confinement period:
- Before and after childbirth,
the laborer is allowed a total leave of 120 days if she works in normal
conditions, or 150 days if she works in heavy-duty jobs or noxious occupations,
or in a place where the area subsidy index is 0.7 or 1. The leave before
childbirth is 30 days. If it is taken earlier than that, the total length of
the leave shall not exceed the common stipulated level.
- In the event of a multiple
birth, the mother shall be allowed an extra 30 days of leave on allowance for
each of the children from the second.
- In case the new-born is dead
within sixty days of birth (including still birth), the mother is allowed 75
days of leave on allowance from the date of the birth; if the new-born is dead
after sixty days of birth, the mother is allowed 15 days of leave on allowance
from the death of the child. In both of these stipulated cases, the total
length of the maternity leave shall not exceed the common stipulated time.
At the end of the stipulated
time, at the request of the nursing laborer and with the consent of her
employer, she may take extra leave, but for not more than 180 days, and during
which time she shall not enjoy social insurance.
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The laborer (male or female) who
is nursing a legitimate new-born in accordance with the provisions of the Law
on Marriage and the Family, shall be allowed a leave on allowance to take care
of the infant until it is 120 days of age.
3. The allowance:
During the maternity leave as
stipulated in Point 2, the mother is entitled to maternity leave equal to 100%
of the salary on which she buys her social insurance prior to the leave.
Besides, at the time of
confinement, the mother shall receive a one-time subsidy equal to two months of
the minimum wage.
In the event of a twin or
multiple birth, or a post-delivery death of the mother, or the mother is banned
by the health authority from breast feeding, or of rearing an infant, there
shall be a subsidy equal to two months of the minimum wage to pay for the dairy
milk.
III. ALLOWANCE
FOR LABOR ACCIDENT AND OCCUPATIONAL DISEASE
1. Allowance for labor accident:
a) Conditions for allowance:
- The labor accident happens to
the laborer during the working hours, at the work place, including overtime
work at the request of the employer;
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- The accident happens to the
laborer on his/her way between his/her residence and the work place;
- The accident happens to the
laborer when he/she is rescuing people or property of the State or the people.
The size of the allowance for labor
accident is decided according to the procedures currently in force.
b) The allowance:
- During the leave for treatment
until the condition of his/her injury is stable, the laborer is entitled to an
allowance equal to 100% of his/her salary prior to the labor accident and the
cost of treatment (in accordance with the provisions of the Ministry of
Health). This cost shall be covered by the employer.
- When the condition of his/her
injury is stable, the victim of the labor accident shall be sent by the social
insurance organization for evaluation of his/her labor ability at the Health
Evaluation Council of the level of province or city directly under the Central
Government, or the Health Evaluation Council of the branch level, in accordance
with the provisions of the Ministry of Health. Depending on the extent of
his/her labor disability, the laborer shall receive a subsidy equal to the
average wage of State employees. This wage level is double the minimum wage and
is provided for as follows:
+ For labor disability from 5%
to 60%, the allowance is given in one time as specified in the table below:
Labor
disability
One-time
allowance
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4 months of minimum wage
From 21% to 30%
8 months of minimum wage
From 31% to 40%
12 months of minimum wage
From 41% to 50%
18 months of minimum wage
From 51% to 60%
24 months of minimum wage
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+ For labor disability from 61%
to 100%, the monthly allowance is given (from the date of hospital checkout) on
the basis of the disability level as specified in the table below:
Labor
disability
Disability
level
Monthly
Allowance
From 61% to 70%
4
one month of minimum wage
From 71% to 80%
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From 81% to 90%
2
1.4 months of minimum wage
From 91% to 100%
1
1.6 month of minimum wage
- For the victim of a labor
accident who loses 81% or more of his/her labor ability and who cannot take care
of his/her natural functions, due to a paralysis of the spinal column, total
blindness, a loss of two limbs or a serious mental disorder, he/she shall be
provided with a helper fee equal to 80% of the minimum wage.
- For the victim of a labor
accident who suffers from functional damage to the feet, hands, ears, eyes or
the spinal column, etc., he/she shall be given a one-time provision of aiding
facility to help him/her replace the lost function.
- When the injury recurs, the
laborer shall be treated and have it re-evaluated.
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- The recipient of one-time or
monthly labor accident allowance who meets the required conditions, is still
entitled to the pension stipulated in Part IV of this Circular.
2. Allowance for occupational disease:
a) Conditions for allowance:
The laborer who suffers from an
occupational disease while doing a work, which is specified in the list of
occupations provided for in Circular No.8-LB/TT on the 19th of May, 1976, and
Circular No.29-LB/TT on the 25th of December, 1991, jointly issued by the
Ministry of Health, the Ministry of Labor, War Invalids and Social Affairs, and
the Vietnam General Confederation of Labor.
b) The allowance:
The salary, the cost for
consultation and treatment during the treatment of the occupational disease,
the provision of one-time or monthly allowance and the helper subsidy and other
regimes shall apply to the laborer contracting occupational disease in the same
way as to the victim of labor accident, provided for in Point (b), Item 1, Part
III of this Circular.
IV. PENSION
1. Monthly pension:
a) Conditions for the monthly
pension:
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a. 1) Having purchased social
insurance for a 20 years (240 months) or more:
a. 2) Having reached 60 years of
age for a man, and 55 years of age for a woman.
The eligible age for retirement
(or retirement age may increase or decrease in the following cases:
- The retirement age may
increase by not more than 5 years (not more than 65 years of age for a man, and
60 for a woman) in special cases in which the employer has the need to retain
the service of the laborer (in the administrative sector, there must be the
payroll quota), and the laborer is still physically fit and volunteers his/her
service in writing.
- The retirement age may
decrease by not more than 5 years (not less than 55 years of age for a man, and
50 for a woman) if the laborer falls into one of the following categories:
+ Having 20 years of service in
a profession or on a job which is heavy and noxious; in a place which has area
subsidy indexes of 0.7 and 1 (discontinued periods shall be added up).
The heavy and noxious jobs and
works are those of category IV or higher, stipulated in the listed labor
categories issued under Decision No.278-LD/QD on the 13th of November, 1976 of
the Ministry of Labor, in the list of occupations to be paid with hazard
allowances issued under Decree No.235-HDBT on the 18th of September, 1985 of
the Council of Ministers (now the Government); in the list of heavy, noxious
and dangerous jobs issued under Circular No.19-LDTBXH/TT on the 31st of
December, 1990 of the Ministry of Labor, War Invalids and Social Affairs; and
in the supplementary provisions of the Ministry of Labor, War Invalids and
Social Affairs, or of other Ministries with the consent of the Ministry of
Labor, War Invalids and Social Affairs; the areas which have area subsidy
indexes of 0.7 and 1, are stipulated in Circular No.15-LDTBXH on the 2nd of
June, 1993;
+ Having 10 years of service on
battlefields in southern Vietnam and Laos before the 30th of April, 1975, and
in Cambodia before the 31st of August, 1989. The time periods in different
battlefields shall be added up.
+ Having served before the 20th
of July, 1954;
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In case the retired has at least
20 years working heavy or noxious jobs, or in area which has area subsidy
indexes of 0.7 and 1, or has spent at least 10 years on battlefields in
southern Vietnam or in Laos or Cambodia, the retirement age may be advanced by not
more than 5 years (no less than 50 years of age for a man, and 45 years of age
for a woman).
b) The pension:
b.1) One-time allowance on
retirement:
- The laborer, who has purchased
social insurance from 20 to 30 years, shall receive and allowance equal to one
month of his/her salary.
- The laborer, who has purchased
social insurance for from over 30 years to 35 years, shall receive an allowance
equal to 2 months of his/her salary.
- The laborer, who has purchased
social insurance for over 35 years, shall receive an allowance equal to 3
months of his/her salary.
For the laborer who works in the
State sector, the salary on which to calculate his/her one-time allowance is
the salary he/she is paid immediately before retirement, which includes the
salaries paid on rank, title, responsibility, the subsidies paid on title and
on seniority in elected position and the index subsidy and area subsidy (if
any).
With regard to those working in
the non-State sector, or working both in the State-owned sector and in the non-State
sector, the lump sum paid to them upon retirement is based on the average wage
for paying social insurance premiums (as stipulated at Point b.2 below).
b.2) Monthly pension:
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- With regard to workers and
employees in the State-owned sector: their pension shall be calculated on the
basis of the average wage for paying social insurance premiums during the 10
years before retirement (hereunder referred to as the average salary for paying
social insurance premiums). This average wage is the result of the division by
120 months of the total amount of wages for paying social insurance premiums
during the 10 preceding years.
In case workers and employees in
the State-owned sector retire and their average wage for paying social
insurance premiums during the last 10 years before retirement, including the
time before application of the new wage regime (1st April 1993), then their
pension shall be calculated on the basis of the wages paid to them from the 1st
of September 1985, according to the scale of wages stipulated by Decree No.
235-HDBT on the 18th of September 1985 of the Council of Ministers
(now the Government, and Decision No. 58-QD/TW on the 18th of
September, 1985 of the Party Secretariat, which are converted to the wages of
grades, professions and titles, including position allowance (if any) of the
new wage regime. More concretely:
+ The universally elected
officials and professional and administrative officials of the judicial and
procuracy branches, the universally elected managers of the State apparatus
from provincial to district levels, public employees of the administrative and
professional sector, the elected officials, and officials and employees in
Party and mass organizations shall have their old wages changed to the new
system as stipulated by Decision No.35-NQ/UBTVQHK9 issued on the 17th of May,
1993 by the National Assembly Standing Committee, Decision No.69-QD/TW issued
on the 17th of May, 1993 by the Secretariat of the Party Central Committee,
Decree No.25-CP on the 23rd of May, 1993 by the Government, Decision No.574-TTg
on the 25th of November 1993 of the Prime Minister, Decree No.5-CP on the 26th
of January, 1994 of the Government, Circular No.10-LB/TT on the 2nd of June,
1993, Circular No.5-LB/TT on the 4th of February, 1994, and Circular
No.25-LB/TT on the 13th of September, 1993 of the Ministry of Labor, War
Invalids and Social Affairs, the Ministry of Finance, and the Government
Commission on Organization and Personnel (example given in the Appendix
enclosed with this Circular).
+ The workers and employees in
State-owned businesses shall have their old wages changed to new ones, as
stipulated by Decree No. 26-CP on the 23rd of May, 1993, and Decree No. 5-CP on
the 26th of January, 1994 of the Government, and Circular No. 12-LB/TT on the
2nd of June, 1993 of the Ministry of Labor, War Invalids and Social Affairs,
the Ministry of Finance, and the Government Commission on Organization and
Personnel (examples given in the Appendix enclosed with this Circular).
- With regard to those working
both in the State-owned sector and the non-State sector, such as joint venture
enterprises, foreign invested enterprises, private businesses, etc., their wage
for paying social insurance premiums shall be calculated as follows:
+ Their average wage for paying
social insurance premiums of the period during which they work in the
State-owned sector as is applied to State employees. Then, to multiply the
average wage for paying social insurance premiums by the total number of months
during which they work in the State-owned sector, to have the total value of
wages for payment of social insurance premiums in the State-owned sector.
+ The average wage for payment
of social insurance premiums of the period during which they work in the
non-State sector, multiplied by the total number of months during which they
work in the non-State sector to have the total value of wages for payment of
social insurance premiums in the period of their work in the non-State sector.
Then to add the total value of
wages for payment of social insurance premiums of both sectors and divide it by
the total number of months for payment of social insurance premiums of both
State-owned and non-State sectors to have the common average wage for payment
of social insurance premiums as the basis for calculating the pension (examples
given in the Appendix enclosed with this Circular).
- With regard to those working
in the non-State sector, their average wage for payment of social insurance
premiums shall be calculated as follows:
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+ If during their working
period, they have paid social insurance premiums according to several scales of
wages, their average wage for payment of social insurance premiums shall be
calculated by determining the average wage of each period, and then the common
average wage of all periods, in the same way as for those who have working
periods in both the State-owned sector and the non-State sector.
b.3) The monthly pension:
Those, who have paid social
insurance premiums for 20 years, shall enjoy a pension equal to 55% of the
average wage for payment of social insurance premiums, each additional year of
social insurance premiums shall be given another 2%, but the maximum pension
shall not exceed 75% of the average wage for payment of social insurance
premiums.
The lowest pension must not be
lower than the minimum wage.
(The method of calculating
pensions is given practical demonstration in the Appendix enclosed with this
Circular).
2. The regime of paying pension
in a lump sum.
a/ Eligible for the pension are:
- Those persons who have reached
retirement age as stipulated, but who have paid social insurance premiums for
less than 20 years;
- Those persons who have not yet
reached the retirement age as stipulated (regardless of how many years they
have paid social insurance premiums), but who for health reason (not due to a
labor accident or an occupational disease) have been certified by the medical
examination council that they have lost 61% or more of their working capacity.
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The payment of pension in a lump
sum shall be based on the number of years in which the persons concerned have
paid social insurance premiums: one year of paying social insurance premiums
entitles the person concerned to one month of the average wage for payment of
social insurance premiums before retirement.
The average wage shall be
calculated as stipulated in the regime of monthly pension (Section IV, Point
b.2).
3. With regard to those working
people who have not yet reached retirement age, but who have paid social
insurance premiums for 20 years or more, if for one reason or another they
cannot continue to work and to pay social insurance premiums, then when they
reach retirement age as stipulated, they shall be granted a monthly pension,
but the managing agency must compile a dossier and send it to the Labor, War
Invalids and Social Affairs Office or to the Social Insurance Management Office
to consider and settle.
V. THE REGIME OF
DEATH ALLOWANCE
1. Funeral allowance.
a/ Eligible are:
- Those persons in active
service who have paid social insurance premiums according to regimes stipulated
at Section B of this Circular, including those who have retired or are waiting
for pension.
- The pensioners and recipients
of monthly allowance for labor accident or occupational disease.
b/ The funeral allowance is equal
to 7 months of the minimum wage. The person in charge of organizing the funeral
shall receive this funeral allowance.
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a/ Eligible are:
Those persons who have paid
social insurance premiums for 15 years or more; the recipients of monthly
pension; the recipients of monthly allowance for labor accident or occupational
disease as stipulated at Section III of this Circular who die, and those who
die of a labor accident or occupational disease, In this case, their next of kin
as mentioned below who directly supported them while they were alive, shall be
granted a monthly death allowance. The next of kin are:
- Their own parents, their
spouse’s parents, their lawful fosters, their spouse who are past working age
(60 full years for men, and 55 full years for women) or who is still in working
age, but has lost 81% or more of his/her working capacity. But among these
persons, they who are receiving a wage, or a pension, or a monthly allowance
for loss of working capacity, for labor accident, or for occupational disease,
shall not receive the monthly death allowance.
- Their children under 16 years
of age (including their own children, legally adopted children, illegitimate
children recognized by law, and the child which is conceived before the husband
dies), or children older than 16 who have lost 81% or more of their working
capacity.
b/ Monthly death allowance:
The monthly death allowance for
one next of kin shall be equal to 25% of the minimum wage, and the number of
next of kin entitled to this monthly death allowance shall not exceed 4. The
monthly death allowance shall be granted from the day the laborer dies.
In case one person has many next
of kin who pay social insurance premiums and who die, he/she shall be granted a
number of monthly death allowances equal to the number of his/her next of kin
who pay social insurance premiums and who die.
With regard to the next of kin
stipulated at Point a, if he/she has no other source of income and has no other
close relative to rely on, he/she shall receive a support death allowance
representing 70% of the minimum wage.
3. One-time death allowance
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When a laborer, who has paid his
social insurance premiums or who is receiving monthly pension or labor accident
or occupational disease allowances as stipulated at Part B, Section III of this
Circular, dies but his/her next of kin does not fall under the category of
recipients of monthly death allowance, his/her family shall receive a one-time
death allowance.
b/ Level of one-time death
allowance:
- When a laborer in active
service who is covered by the social insurance scheme dies, his/her family
shall receive a one-time death allowance proportional to the number of years
for which he/she has paid his/her insurance premiums, and representing half of
the monthly wage on which he/she has paid his/her insurance premiums, for every
year of active service, but not exceeding the total sum of 12 months of wage.
The level of death allowance to the families of the persons working in the State
sector, shall be based on the monthly wage on which he/she has paid his/her
insurance premium in the month before his/her death. For the persons working
outside the State sector, or partly in the State sector and partly outside the
State sector, the level to determine the death allowance shall be based on the
average monthly wage on which he/she has paid the insurance premiums (see Point
b.2, Item b, Part IV).
- When a person who is receiving
a monthly pension, labor accident or occupational disease allowance dies,
his/her family shall receive a one-time death allowance, based on the pension
or allowance he/she is receiving, and the time he/she has received this pension
or allowance. If he/she dies in the first year after retirement, the one-time
allowance is 12 months of pension or allowance; if he/she dies in the second
and a later year, one month of pension or allowance shall be substrated from
every year he/she has received the pension or allowance, but the one-time
allowance shall not fall below three months of pension and allowance. For
example:
1. Mr. A dies after receiving 14
months of pension. The allowance shall represent 11 months of pension (12
months minus one month of allowance).
2. Mr. B 10 years after
retirement. His monthly pension in the 10th year is 303,678 VND, his death
occurs in the last month of the 10th year. The death allowance shall be 303,678
VND x (12 months - 10 months) = 607,356 VND. However, according to the
stipulation mentioned above, the one-time allowance should represent at least
three months of pension or allowance, the death allowance shall be 303,678 VND
x 3 = 911,034 VND.
VI. ALLOWANCES
TO THE PERSONS COVERED BY SOCIAL INSURANCE BEFORE THE APPLICATION OF DECREE
No.43-VCP
1. The persons receiving monthly
pensions, incapacity or labor accident or occupational disease allowances, the
workers at rubber plantations receiving monthly allowances, and the persons
receiving monthly death allowances prior to the application of Decree No.43-CP,
shall continue to receive the allowances as prescribed earlier by the Council
of Ministers (now the Government), and shall enjoy the readjustments at the
level defined by the Government.
2. When a person, who is
receiving pension and incapacity allowance, labor accident Degree 1 and 2 and
occupational diseases Category 1 and 2 allowances, dies, the death allowance
described at this Circular shall apply.
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C.
IMPLEMENTATION PROVISIONS
I. REGIME OF
ALLOWANCES AND MEDICAL INSURANCE
The following persons shall
receive area allowance, dearness allowance in his/her place of residence (if
any), and shall have their medical insurance covered by the State:
- Recipients of monthly
pensions;
- Those who are receiving
monthly labor incapacity allowances;
- Those who are receiving
monthly labor accident allowance or occupational disease allowance;
- Workers at rubber plantations who
are receiving monthly allowances.
II. TIME FOR
THE CALCULATION OF SOCIAL INSURANCE BENEFIT
The time for the calculation of
social insurance benefit is the total number of years in which the laborer has
paid his/her social insurance premiums.
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- For the laborers in the
non-State sector who come under the obligatory social insurance system, who
have paid their social insurance premiums prior to the promulgation of this
Circular, and who remain under the obligatory insurance system, they shall
enjoy social insurance for the years they have paid their social insurance
premiums.
III. HANDLING
OF VIOLATIONS
1. Temporary suspension of the
right to social insurance:
- During the laborer's temporary
detention or imprisonment.
On the expiry of his/her
temporary detention or imprisonment, the laborer shall be considered for
eligibility or non-eligibility for social insurance. On a return of non-guilty,
he/she shall receive retroactive payment of pension or allowance for the time
of suspension.
- When a case of fraud aimed at
receiving social insurance is detected, the offender shall, depending on the extent
of the violation, have his/her social insurance benefit reduced, or have
his/her right to social insurance annulled.
2. Annulment of the right to
social insurance:
- The persons sentenced to
prison terms on account of betrayal to the Fatherland;
- The persons who leave for
abroad or stay overseas illegally;
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3. The employers, the laborers,
the State officials or personnel of the social insurance organizations, who
violate the provisions of the system of social insurance, shall be subject to
administrative fines or investigated for penal liability according to the law
in force.
IV.
IMPLEMENTATION EFFECT
Pending a social insurance
scheme as stipulated in Decree No.43-CP, the Vietnam Confederation of Labor
shall manage and carry out the regimes concerning sickness, maternity, labor
accident or occupational disease. The Ministry of Labor, War Invalids and
Social Affairs shall manage and carry out the regimes concerning pension, death
allowance (including the earlier regime concerning labor incapacity).
This Circular takes effect as
from the 1st of January, 1994. With regard to the regimes of allowances
concerning sickness, maternity, labor accidents or occupational diseases, they
shall take affect as from the 1st of July, 1994. All earlier regulations on
social insurance contrary to this Circular are now annulled.
In the process of
implementation, if some problems arise, they should be reported to the Ministry
of Labor, War Invalids and Social Affairs, and the Ministry of Finance for
consideration and settlement.
FOR
THE MINISTER OF FINANCE
VICE MINISTER
Tao Huu Phung
FOR
THE MINISTER OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS,
VICE MINISTER
Le Huy Dong
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(published
together with the Joint Ministerial Circular No. 21-LB/TT on the 18th of June,
1994 of the Ministry of Labor, War Invalids and Social Affairs, and the
Ministry of Finance)
CALCULATION OF THE AVERAGE WAGE FOR THE PAYMENT OF
SOCIAL INSURANCE PREMIUMS AND CALUCLATION OF PENSION.
Example 1: A State
employee who has paid his social insurance for 35 years and who retires on the
1st of January, 1994. His wages in the ten years preceding retirement are as
follows.
- From the 1st of September,
1985 to the 31st of December, 1985, his monthly wage was 390 VND.
- From the 1st of January 1986
to the 31st of December, 1986, his monthly wage was 425 VND.
- From the 1st of January, 1990
to the 31st of March, 1993, his monthly wage was 463 VND.
- From the 1st of April, 1994 in
the new wage system, he is classed on the wage scale with a coefficient of
3.91.
His monthly pension will be as
follows:
1. Average monthly wage for the
payment of social insurance premiums:
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- 390 VND is converted into 3.06
x 120,000 VND = 367,200 VND.
- 425 VND is converted into 3.35
x 120,000 VND = 402,000 VND
- 463 VND is converted into 3.91
x 120,000 VND = 469,200 VND
b/ Total wages for the payment
of social insurance premiums from September 1985 to December 1993:
- From September 1985 to
December 1985:
4 months x 367,000 VND =
1,468,800 VND
- From January 1986 to December
1989:
48 months x 402,000 VND =
19,296,00 VND
- From January 1990 to December
1993:
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Total: 100 months = 43,286,400
VND
c/ Average wage for payment of
social insurance premiums:
43,286,400 VND: 100 months =
432,864 VND
2. Monthly pension represents
75% of the average monthly wage for payment of social insurance premiums:
432,864,000 VND x 75% = 324,648
VND
Example 2: An army
officer who had changed from army service to a civil work and has paid his
social insurance premiums for 32 years and who retired on the 1st of April,
1994. His army rank when detailed to a civil work was first lieutenant with 24
years of service in the army. His wages in the ten years before retirement were
as follows:
- From the 1st of September 1985
to the 31st of March 1986, his first lieutenant wage was 350 VND, plus 24% of
army seniority allowance.
- From the 1st of April 1986 to
the 31st of March 1990, he received a monthly wage of 390 VND.
- From the 1st of April 1990 to
the 31st of March 1993, his wage was 425 VND.
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His monthly pension is as
follows:
1. Calculation of average wage
for payment of social insurance premiums:
a/ Conversion of the wages from
September 1985 to the new wage system:
- First lieutenant wage of 350
VND is converted into 3.8 x 120,000 VND = 456,000 VND.
- His wage of 390 VND is
converted into 3.06 x 120,000 VND = 367,200 VND
- His wage of 425 VND is
converted into 3.35 x 120,000 VND = 402,000 VND
b/ Total of wages for the
payment of social insurance premiums from September 1985 to March 1994:
- From September 1985 to March
1986:
Army rank wage: 456,000 VND
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Total: 565,440 VND
7 months x 565,440 VND =
3,958,080 VND
- From April 1986 to March 1990:
48 months x 367,200 VND =
17,625,600 VND
- From April 1990 to March 1993:
36 months x 402,000 VND =
14,472,000 VND
- From April 1993 to March 1994:
12 months x 402,000 VND =
4,824,000 VND
Total 103 months = 40,879,680
VND
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40,879,680 VND: 103 months = 369,890
VND
2. Monthly pension represents
75% of the wage for payment of average social insurance premiums:
369,890 VND x 75% = 297,668 VND
Example 3: A Vice
President of the provincial People's Committee who has paid his social
insurance premiums for 40 years, retiring on the 1st September, 1995. His wages
in the ten years preceding retirement are:
- From September 1985 to October
1986: he was Director of the provincial Educational Service, his wage was 513
VND.
- From November 1986 to November
1989 he was Director of the provincial Educational Service, his wage was 555
VND.
- From December 1989 to March
1993, he was Vice President of the People's Committee of the province, his wage
was 599 VND.
- From April 1993 to August
1995, his new wage was converted by the coefficient 6.2.
His monthly pension is as
follows:
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a/ Conversion of wage levels
effective from September 1985 into new wage levels:
- Wage 513 VND (Director of
Service) converted by coefficient 4.19
- Position allowance (Director
of Service): 0.7
Total: 4.89 x 120,000 VND =
586,800 VND
- Wage 555 VND converted by
coefficient 4.75
- Position allowance: 0.7
Total 5.45 x 120,000 VND =
654,000 VND
- Wage 599 VND (Vice President
of provincial People's Committee) converted into:
6.2 x 120,000 VND = 744,000 VND
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- From September 1985 to October
1986:
14 months x 586,800 VND =
8,215,200 VND
- From November 1986 to November
1989:
37 months x 654,000 VND =
24,198,000 VND
- From December 1989 to August
1995:
69 months x 744,000 VND =
51,336,000 VND
Total: 120 months = 83,749,200
VND
c/ His average wage for payment
of social insurance premiums is:
83,749,200 VND : 120 months =
697,910 VND
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697,910 x 75% = 523,433 VND
Example 4: An engineering
worker having paid social insurance premiums for 25 years and retiring on the 1st
of September, 1998. His wages in the ten years preceding retirement were:
- From September 1988 to October
1992, he received Grade 5 wage of 315.50 VND
- From November 1992 to March
1993, he received Grade 6 wage of 336 VND
- From April 1993, his Grade 6
wage changed to new wage by coefficient 2.67.
His monthly pension shall be as
follows:
1. Average monthly wage for
payment of social insurance premiums:
a/ Change of the wages from
September 1988 to new wage scale:
- 315.50 VND changed to 2.18 x
120,000 VND = 261,600 VND
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b/ Total wages for payment of
social insurance premiums from September 1988 to August 1998:
- From September 1988 to October
1992:
50 months x 216,600 VND =
13,080,000 VND
- From November 1992 to August
1998:
70 months x 320,400 VND =
22,428,000 VND
Total: 120 months = 35,508,000
VND
c/ Average wage for payment of
social insurance premiums:
35,508,000 VND : 12 months =
295,900 VND
2. Monthly pension represents
65% of the wage for payment of social insurance premiums:
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Example 5: A worker
affected to the State payroll from January 1962 to February 1989. From March
1989 to May 1994, he was assigned to an enterprise having foreign investment.
1. His average wage for payment
of social insurance premiums in the State sector:
- From September 1985 to
February 1989, his wage was Grade 5 or 315,50 VND.
This changed to the new wage
scale under Decree No.26-CP into: 2.18 x 120,000 VND = 216,600 VND
- Total value of wages for his
payment of social insurance premiums during his service in the State sector:
216,600 VND x 326 months =
85,281,600 VND
2. Average wage for payment of
social insurance premiums when he worked at the foreign-invested enterprise:
- From March 1989 to June 1991,
he received 50 USD per month, which is equal to 540,000 VND at the time of his
retirement (one USD = 10,800 VND):
540,000 VND x 28 months =
15,120,000 VND.
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702,000 VND x 34 months =
23,868,000 VND.
Total: 62 months = 38,988,000
VND.
- Average monthly wage for
payment of social insurance premiums:
38,988,000 VND : 62 months =
628,838,71 VND.
- Total value of wages for
payment of social insurance premiums for both periods inside and outside the
State sector:
628,838.71 VND x 62 months =
38,988,000 USD
3. Calculation of average wage
for payment of social insurance premiums for both periods inside and outside
the State sector:
- Total value of wages for
payment of social insurances premiums:
85,281,600 VND + 38,988,000 VND
= 124,269,600 VND.
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326 months + 62 months = 388
months.
- Average wage for social
payment of social insurance premiums is:
124,269,600 VND : 388 months =
320,282.47 VND.
4. Monthly pension represents
75% of the wage for payment of social insurance premiums:
320,282.47 VND x 75% =
240,211.85 VND.-