CIRCULAR No. 06/LDTBXH-TT DATED 04 APRIL
1995 OF THE MINISTRY OF LABOUR- WAR INVALIDS
AND SOCIAL AFFAIRS
Guiding the implementation of the Social insurance regulations attached
to Decree No. 12-CP dated 26 January 1995 by the Government
Pursuant to Decree No.12-CP dated 26 -January 1995 by the Government promulgating Regulations on Social In- surance ; in agreement with the Ministry of Health; the Ministry of Finance and the Vietnam General Labour Federation, the Ministry of Labour, War Invalids and Social Affairs guides the implementation of the Regulatiops on Social Insurance as follows :
A.SCOPE OR APPLICATION
All people mentioned in Article 3 of Regulations on Social Insurance, who enter into temporary labour contracts or do certain jobs for less than 3 months, shall not be subject to Regulations on Social Insurance.
B. SOCIAL INSURANCE POLICIES
I. SICKNESS ALLOWANCE
1. Those who are currently employed at an office, unit or enterprise (including cases of work stoppage/waiting for a job ith continued payment of salary) and have paid social insurance premiums shall be entitled to sickness allowance or allowance for taking care of his/her sick child stipulated in Article 6 and Article 8.
2. According to stipulations in Article 7, the period of time for the calculation of sickness allowance is the total length of service during which social insurance premiums had been paid prior to the sick leave of a relevant employee. In the event of interrupted social insurance premium payment, the different periods of time during which payment of insurance premiums had been trade shall be combined.
3. An employee shall be entitled to periods of sickness allowances provided under item 2, Article 7 in the following cases :
- Such employee permanently works in heavy or hazardous occupations or jobs and pays social insurance premiums in accordance with the salary scale of his job ;
- Such employee permanently works in areas where the allowance index is fixed at 0.7 or more, and pays social insurance premiums in accordance with his salary plus the allowances involving such index.
4. Length of sick leave shall range from 30 to 40, 50 and 60 days provided in Article 7, and shall exclude Sundays or public hodidays in accordance with stipulations in Government Decree No.195-CP dated 31 December 1994.
For instance :
An employee who takes sick-leave for 7 days during which there are one Sunday and one public hodiday, such employee shall be entitled to paid sick-leave of 5 days.
5. In respect of taking days off to lock after a sick child under Article 8, if the father is the only subscriber to the social insurance policy and he himself has to lock after the sick child, he shall be entitled to social insurance benefit to take care of the sick child.
6. Absence from work for taking family-planning measures, according to Item 4, Article 8 shall be granted as follows :
- A female employee, who undergoes an abortion, is entitled to a paid leave of 20 days in case of less than 3 months of pregnancy ; and of 30 days in case of more than 3 months of pregnancy ;
- A male employee, who accepts vasectomy, and a female employee, who accepts tubectomy, is entitled to a leave of 15 days with allowance ;
- A female employee accepting IUD or menstrual regulation method, is entitled to a 7-day leave with allowance.
7. The level of allowance for sickness or absence from work to take care of a sick child, or family-planning measures provided under Article 9, is calculated as fallow :
Allowance per day = (Salary used as basis to set the pay ment of social insulrance of a month prior to sick leave/26 days) x 75%
8. Gross salary of a month prior to the sick leave shall include also any payment entitled due to one's post title, rank/position, contractual benefit, seniority, people-elected position, area allowance and cost-of-living allowance (if any) etc... (Hereinunder-gross salary-Translator) .
II. MATERNITY ALLOWANCE
1. Maternity allowance entitled to a female employee/worker in case of her first or second child and stipulated in Article lo includes :
- A female employee after the delivery of her first and second child.
- A female employee, after her delivery of her first child; or her second delivery with 2 or more children ;
- A female employee after her first delivery of 2 or more children ;
- A female employee with her own child, who is married to another man and gives birth to another child, is entitled to maternity allowance;
- A single female employee, who is married to a man who already has his own child, is entitled to maternity allowance when she gives birth to the first child ;
- A female employee whose first child is born out of wedlock; is entitled to maternity allowance after her delivery of such child ;
Where her first or second child dies a premature death, a female employee is entitled to maternity allowance for the next delivery in accordance with the above-mentioned provisions
2. The objects are entitled to maternity leave of 4, 5, or 6 months provided in Item I, Article 12 specifically as follow :
- Four months for a female employee who works in normal conditions ;
- Five months for a female employee who permanently works in heavy or hazardous occupations or jobs, enterprises with 3-shifts, or in place which has an area allowance index form 0.5 to 0.7, and pays social insurance premiums in accordance with the respective salary with such occupations or jobs or area conditions ;
- Six months for a female employee who permanently works in a special occupations or jobs, or in a place which has an area allowance index of I, and pays social insurance premiums in accordance with the respective salary with such occupations or jobs or area conditions.
3. The period for maternity leave after the death of a new-born stipulated in Item 2, Article 12, shall be calculated as follow :
- total 30 days for I month ;
- total 75 days for 2.5 months ;
- total 15 days for a half-month.
4. In case the female employee desires to resume working before the expiry of her maternity leave stipulated in Item 4, Article 12, but her employer fails to assign a job for her, she shall continue to enjoy her maternity leave until the end of the granted maternity leave.
5. The period of paid leave allowed for an employee nursing an adopted baby stipulated in Article 13 shall be applicable to the employee who adopts one child.
6. The maternity allowance stipulated in Article 14, are as follows :
a) Alowance for absence from work prior the leave for prerata' care or miscarriage off = (Grass salary premiums of a month)/ 26 days * number of days Off * 100%
b) Allowance for leave off Gross salary of a month prior work delivery or adopting child = (Gross salary of a month prior to the leave for delivery or adopting child) * (number of month off for devivery of adopting child)
The salary which is used as basis to set the maternity allowance shall be calculated in accordance with instructions in Point 8. Item 1 of this Circular.
III. ALLOWANCES FOR LABOUR ACCIDENT AND OCCUPATIONAL DISEASES
1. According to Article 16, medical expenses and salary to be paid by the employer for the victim of labour accident are as follows :
- Medical expenses including any user's fees and expenses for therapeutic diets (if any) ;
- Salary payment during the period of hospitalization shall be the gross salary of a month before the labour accident occurs.
2. The labour accident allowance to be given to an employee under Articles Ii and 22, shall be calculated on the basis on the minimum basic salary set at 120,000 VND, pursuant to Government Decree No.25-CP dated 23 May 1993.
3. Labour accident involve people who have stopped working but are entitled to health insurance stipulated in Article 18 relate to cases of persons who are no longer on the payroll of an enterprise or who have terminated labour contract (in other words, no longer working) at an office, unit or enterprise).
4. The provision of aids for rehabilitation to employees who are victims of labour accident in accordance with Article 20 shall be as follows :
a) Specific provisions :
- An employee, who lost his/her leg(s), is entitled to (an) artificial leg(s)) for use in 3 years. Besises, such employee is annually provided with 2 cotton fibre pads for coverning the stump, one pair of canvas shoes and one pair of socks. Where the use of artificial leg is impossible, he/she shall be provided a pair of wooden crutches instead, to be used for 2 years.
- The employee; who lost an arm(s), is entitled to (an) artificial arm to be used for 5 years, and annually to be provided with 2 cotton fibre pads for covering the stump and one pair of gloves.
- The employee, who lost his/her eye(s), is entitled to (an) artificial eyes, to be used for 3 years ;
- The employee, who loot tooth/teeth, is entitled to artifi cial tooth/teeth to be used for 3 years ;
- An employee, who suffers from complete paralysis, hemiplegia or paraplegia, is entitled to have a wheel-chair once and for all, in addition to the annual supply of one set of tyre and tubes, one seating-mattress ; and the replacement of spare-parts for such wheel-chair when necessary.
- An employee who is deaf in both ears, is entitled to one set of hearing aid for his/her life time.
If the aids for rehabilitation broke down before the expected expiry due to the user's fault, such user must get it repaired at his/her cost ; if the aids broke down due to their poor quality, the social insurance agency providing the aids must get them repaired or replace them with new aids for the user.
b) Responsibilities of the social insurance agency for providing with aids for functional rehabilitation :
- Providing the victim of labour accident with letters of introduction, so that he/she can get the means of rehabilitation ;
- Covering the cost for the purchase of the aids ; as well as from travelling expenses incurred for such purpose.
5. Allowance/pension for the victim of labour accident stipulated wider Article 23 shall be provided as follows :
- An employee, who has reached the age of retirement, but the length of his/her service is enough to get a pension; is entitled to one-time allowance in accordance with stipulations in Article 2.8 ;
- An employee, who meets the required conditions to get a monthly pension, is entitled to both the; monthly pension and the monthly labour accident allowance.
6. Employee who suffer from occupational disease(s)) pursuant to a list attached to this Circular shall be entitled to an allowance for such occupational disease(s)) as stipulated in Article 24.
IV.PENSION
1. According to stipulations in Articles 25 and 26, the period of social insurance premium payment for which an employee is entitled to a pension; shall be the period of his/her uninterrupted employment with due payment of social insurance premiums or the total length of different periods of the same.
2. Under Item 2, Article 25, an employee shall be entitled to a reduced age of retirement if she/he
a) has worked for a full 16-year period in heavy or hazardous occupations or jobs; and having paid social insurance premiums in accordance with salary levels applicable to such kinds of occupation or job, or equal to 15 years in case of interrupted periods of employment
b) has worked for a full 15-year period permanently in places which have an area allowance index of 0.7 or more, and ill has paid social insurance premiums in accordance with the salary levels including the area allowances, or equal to 15 years in case of interrupted period of employment ;
c) has worked for a full 10-year in southern Vietnam or Laos before 30 April 1975, or in Cambodia before 31 August 1989 In case of government employees, members of the armed forces being demobilized, such provision shall apply if the relevant person has :
- a full lo-year period working in a battlefield ;
- periods of time working in 2 battlefields which total 10 years ;
- Having a period of time working in 3 battlefields which, in total 10 years.
With regard to the employee who meets either 2 or 3 criteria set out in points a, b or c, the most favourable criterion shall be used as basis for the reduction of age of retirement in accordance with Item 2, Article 25.
3. Stipulations for a monthly pension provided in Item 1, Article 27 are as follows :
a) An employee, who has paid social insurance premiums for 15 years, shall be entitled to a monthly pension equal to 451 of the average of the monthly gross salary. Such monthly pension shall be increased by 2%. of the basic salary for each additional year of social insurance premiums payment, but shall not exceed 75% of the gross salary ;
Example 1 :
A pensioner who has paid social insurance premiums for 20 years ;
For the period of 15 years, his/her monthly pension shall be calculated equal to 45% of the basic monthly salary. From the 16th to 20th year, or a period of 5 years, such monthly pension shall be up by 10% of the gross salary. The rate of his monthly pension shall be :
45% + 10% = 55% (of the gross salary).
Example 2 :
A pensioner who has paid social insurance premiums for 30 years :
For the period of 15 years, his/her monthly pension shall be calculated equal to 45% of the basic monthly salary, From the 16th to 30th year : such monthly pension shall be increased by 10% of the basis salary. The rate of his/her monthly pension shall be :
45% + 30% = 75%. (of the gross salary).
Example 3 :
A pensioner who has paid social insurance premiums for 35 years :
The initial 15 years, his/her monthly pension shall be calculated equal to 45%. of the average of his/her basis monthly salary, From the 16th to 35th year, a period of 20 years : his monthly pension shall be increased by a rate of 40% of the gross salary.
The rate of his/her monthly pension shall be :
45% + 40% = 85% (of the gross salary).
In the last case, the monthly pension entitled to that employee shall only be 75%. of the average of his/her gross salary.
b) An employee, who is entitled to a monthly pension lower than the pension stipulated in Item 1, Article 27, shall have his/her pension calculated as follows :
- Method of calculation of pension under point a shall apply to employees, who retire under Item I, Article 26, at the ages of 60 and 55 respectively for men and women and who have paid social insurance premiums for 15 years to less than 20 years. Specifically, an employee who has paid social insurance premiums for 15 years shall get a monthly pension equal 'to 45% of his/her gross salary. Such pension shall be increased by 2% of the gross salary for each additional year of social insurance premiums payment from the 16th to 19th year, but shall not exceed 53% of such gross salary ;
- Similar method of calculation of pension under a shall apply to employees who retire under Item I, Article 26, at the ages of 50 and 45 respectively for men and women, and who have paid social insurance premiums for a full 20 years or more, but who also have lost 61% or more of his/her labour ability. However, such monthly pension shall be reduced by 2%., for each year of early retirement.
The reduced rate shall be calculated by multiplying the number of years of early retirement by 2% the rate of monthly pension in case of early retirement shall be the rate calculated in accordance with point a less the reduced rate.
For example :
Worker A has paid social insurance premiums for 30 years and lost 61% of his labour ability. He retires at the age of 50. His monthly pension rate shall be calculated as follows :
+ Calculating the rate in accordance with instructions in point a a above :
For the period of 15 years, the rate of his pension shall be equal to 45% of the gross salary, From the 16th to 30th year : an addition of 30% of the gross salary shall be made,
Total rate of pension : 75% (of gross Salary)
+ Calculating the rate of reduction due to early retirement:
A number of years retired from work prior to the fixed age :
60 - 50 = 10 years,
The rate of reduction shall be : lo x 21 = 20%.
+ Mr. A shall be entitled to a monthly pension of : 75% - 20% = 55% (of his gross salary).
- Cases of early retirement mentioned under Item 3, Article 26, and retirement under Item 2, Article 26, in which the relevant employee meets one of the criteria stipulated under Item 2, Article 25, providing for men and women to be eligible retirement at the ages respectively of 55 and 50 shall be covered by point a. However, such level of pension shall be reduced by a rate calculated on the basis of retirement ages, which are 55 and 50 for men and women, respectively.
Example 1:
Mr. Nguyen Van A has paid social insurance premiums for 22 years, including a period of 15 years in which he was assigned to heavy job, and lost 61% of his labour ability. He retires from work at the age of 40.
Mr. A's monthly pension rate shall be calculated as follows :
+ A monthly pension which Mr. A shall be entitled to if he has reached the age of 55 :
For the period of 15 years, his monthly pension shall be equal to 45% of the average of his basis monthly salary, For 7 years covered by social insurance, shall be added to 7% x 2% = 14%,
Total: 59%.
Because Mr. A retires from work before the age of 55, his monthly pension shall be reduced by :
A number of years of early retirement : 55 - 40 = 15 years,
Rate of induction : 15 x 2% = 30%.
+ Mr. A's monthly pension shall be : 59%. - 30% = 29% (of the gross salary) .
Example 2 :
Mr. B has paid social insurance premiums for 28 years including 10 years working in southern Vietnam before 30 April 1975 and lost 61%. of his labour ability. He retires at the age of 50.
Mr.B's monthly pension shall be calculated as follows :
+ Pursuant to the formula calculated for full age of retirement :
For 28 years of scowl insurance premiums payment, he shall toe entitled to pension equal to 71% of his gross salary.
+ The rate to be reduced due to early retirement :
Years of early retirement : 55 - 50 = 5 years
The rate of reduction : 5 x 2% = 10%.
+ Percentage to be calculated a monthly pension :
71% - 10% = 61%
Early retirement mentioned under Items 2 or 3, Article 26, (as mentioned above) also involve cases in which- the relevant person is a wage-earner who pays social insurance premiums or was active in some activities for which sosial insurance premiums was deemed paid before the age of 16. In such cases, the rate for calculation of pension shall be in creased by 2% of the gross salary for each year of work before the age of 16 to make up for the reduced rate due to the years of early retirement.
For example :
Mr.A was active in revolutionaty activities when he was 14. He lost 61% of his labour ability and retired at the age of 54. Mr. A has paid social insurance premiums for 40 years. The rate of his monthly pension shall be calculated as follows :
For the period of 15 years : pension calculated shall be equal to 45% of his gross salary.
For the next 15 years : the rate of pension shall be increased annually b j, 2% of his monthly salary.
Total: 75%
Mr. A's retirement was early by 6 years, and therefore his pension shall be reduced accordingly at a rate of : 6x 2% =12%.
However, Mr. A has also 2 years working before the age of 16; and is entitled to an increase of 2 years x 2% = 4% to be deducted by the reduced rate due to his early retirement, which stands at 12%.
In short, the monthly pension entitled to Mr. A due to his early retirement shall be : 12% - 4% = 8%.
Mr. A's monthly pension shall be : 751. - 8% = 67% (of the gross salary).
c) All the employees entitled to monthly pension pursuant to stipulations under Articles 25 and 26, after having been specifically calculated for their monthly pension, if it is lower than their minimum salary, shall be adjusted to be equal the minimum salary (currently 120,000 VND).
4. According to Item 2, Article 28, a one-time allowance shall be made available to all employees who retire in accordance with Articles 25 and 26 (with lower pension), if they have paid social insurance premiums for over 30 years. From 31 years onward, for each year of social insurance premiums payment, such employees shall be en-titled to cash payment equal to half a month of his gross salary, but shall not exceed the value of 5 months of gross salary.
Example 1:
Mr. X retires at the age of 60, and has paid social insurance premiums for 42 years. The calculation of his onetime allowance shall be as follows : Mr. X has 12 years of social insurance premiums payment starting from the 31th year of service onward. For each year of that 12-year period, he is entitled to cash payment equal to half a month of his gross salary or 6 months of the same gross salary put together.
However, Mrs X shall be entitled to only a one-time allowance of no more than 5 months of his salary pursuant to the current regulations.
Example 2 :
Mr. Y retires at the age of 53 (7 years earlier than the retirement age), and has a length of service of 33 years and 8 months.
Mr. Y's one-time allowance shall be calculated as follows : from the 31th j-ear onward, Mr. Y pays social insurance premiums for 3 years and 8 months. He shall be entitled to one-time allowance of 3 years, each equal to half a month of gross salary. In other wards, he is entitled to an one-time allowance equal to one and a half month of his gross salary which is used his social insurance premiums.
5. Pursuant to Article 28, a one-time allowance shall be calculated by multiplying the number of years covered by social insurance premiums and the gross salary.
Employees, who have stopped working before the age of retirement and who deny the once-time allowance to wait for the grant of pension, shall be entiled to such pension if :
a) such employee has worked for 15 years in normal conditions, and must reach the age of retirement (55 for women and 60 for men)-
b) In respect of the employee, who has paid social insurance premiums for 20 years of which a full 15-year period in heavy or hazardous or especially heavy or hazardous occupations or jobs ; or a full 15-year period in places which have an area allowance index of 0.7 or more ; or a full 10-year period working in southern Vietnam or Laos before 30 April 1975, or in Cambodia before 31 August 1989, such employees shall have to wait until the age of retirement.
c) People waiting for pension entitlement mentioned under point (b) of this article must submit his/her application for this purpose. His/her application must be certified by his/her employer and trade union organization. After that, the head of enterprise must prepare all documents necessary for a pensioner and send them to the social insurance office for the necessary procedures.
Where an employee mentioned in (b) and (c) of this article is again recruited in accordance with the scope of application as stipulated in Article 3, the new period of employment shall be added to the previous one for calculation of his/her monthly pension. In case of the employee has lost 61% or more of his/her labour ability, he/she shall be entitled to the pension allowance in accordance with stipulations in Item 2 or 3, Article 26, or in case of death, his/her family shall be entitled to death allowance stipulated in Section V of Regulations on Social Insurance.
6. The average monthly salary covered by social insurance premiums (gross salary) which provides basis for the calculation of monthly pension, one-time allowances before retirement stippulated in Article 27 and one-time allowances under Article 28, shall be specified as follows:
a) With respect to an employee who has paid social insurance premiums on the basis of the government wage scale, the following form-ala shall apply :
The average monthly salary covered by social insurance premiums =
( Total vane of 60 months of gross salary (the last 5 years) prior to retirement) / 60 months
A gross salary including adjustments for posts, contracts, seniority of elected-positions or other factors.
For example :
A Deputy Director, who has paid social insurance premiums for 35 years, shall retire in December 1998, his gross salary in the last 5 years before his retirement shall be as follows :
+ From 1 December 1993 to 31 November 1995 : he enjoys salary coefficient of 4.19, and position allowance coefficient of 0.6,
+ From 1 December 1995 to 30 November 1998 : he enjoys salary coefficient of 4.47, and position allowance coefficient of 0.6,
Formula to calculate the average of monthly salary to set his monthly pension are as follows :
- From 1-12-1993 to 30-11-1995 : 24 months
Salary calculated by coefficient of 4.19 : 4.19 x 120,000 VND = 502,800 VND
Position allowance : 0.6 x 120,000 VND = 72,000 VND
Total : 574,8000 VND
574,800 VND x 24 months = 13,795,200 VND
- From 1-12-1995 to 30-11-1998 : 36 months
Salary calculated by coefficient Of 4.47 : 4.47 x 120,000 VND = 536,400 VND
Position allowance : 0,6 x 120,000 VND = 72,000 VND
Total : 608,400 VND
608,400 VND x 36 months = 21,902,400 VND
Total gross salary for 60 months shall be :
13,795,200 VND + 21,902,400 VND = 35,697,600 VND
The average of salary used as basis for calculating the monthly pension shall be :
35,697,600 VND : 60 months = 594,960 VND
With regard to the employees, who have paid social insurance premiums under both previous and new salary scale for the last 5 years before retirement, shall be entitled to change from previous salary to a new salary scale for calculating the average as follows :
+ Before 1 April 1993 : the average of monthly salary shall be calculated on basis of the salary scale, which have been paid pursuant to Dcree No.235/HDBT dated 18 September 1985 and Decision No.58/QD-TW, correspondingly change to a new salary scale, which has been issued recently in conjunction with Inter-Ministerial Circular No.10/LB-TT, Inter- Ministerial Circular No.12/LB-TT dated 2 June 1993 and documents guiding the implementation of a new salary scale by the Inter-Ministries of Labour, War Invalids and Social Affairs, the Government Organization Committee and the Ministry of Finance ;
+ From I April 1993 onward, the averagee of monthly salary shall be calculated on basis of a new salary scale in accordance with stipulations in. Decision No.35/NQ- UBTVQHK9 dated 17 May 1993 by the National Assembly Standing Committee, and Decision No.69/QD-TW dated 17 May 1993 by the Party Central Committee's Secretariat, Decree No.25/CP dated 23 May 1993, Decree No.26/CP dated 23 May 1993 and Decree No.05/CP dated 26 January 1994 by the Government.
For example :
A Director, who has 35 years covered by social insurance premiums, retires in October 1995 when he will have reached the age of 60, his social insurance premiums payment for the last 5 years before retirement are as follows :
+ From 1-10-1990 to 31-3-1993 : he enjoys a monthly salary of 621 VND .
+ From 1-4-1993 to 31-3-1992 his new monthly salary was adjusted by coefficient of 5.23,
+ From I-1-1994 to 30-9-1995 his coefficient salary increased to 5.54
Formula for calculating the average of salary to set a monthly pension are as follows :
- From 1-10-1990 to 31-3-1993 : 30 months,
His monthly salary of 621 VND changed to the new coefficient by:
5.23 x 120,000 VND + position allowance of 0.8 x 120,000 VND = 723,600 VND x 30 months = 21,708,000 VND.
- From 1-4-1993 to 31-12-1993 : 9 months (5.23 + 0.8) x 120,000 VND x 9 months = 6,512,400 VND .
- From 1-1-1994 to 30-9-1995 : 21 months
(5.54 + 0.8) x 120,000 VND x 21 months = 15,976,800 VND.
Total monthly Salary which 18 used as basis for set the pavment of social insurance premiums for the last 5-year working period shall be :
21.708,000 VND - 6,512,400 VND - 15,976,800 VND = 44,197,200 VND.
The average of the monthly salayry which is used for calculating a monthly pension shall be :
44,197,200 VND/60 months= 736,620VND
- In respect of the employee; who has paid social insurance premiums under only one salary level for his/her last 5-year working period, such salary level shall be the average.
b) With regard to the employee, who has paid social insurance premiums pursuant to the monthly salary levels under the salary scale or payroll stipulated by the State, while having period covered by social insurance premiums pursuant to the monthly salary levels which are deferent to the salary scale or payroll stipulated by the State, for such case, the formula for calculating the average of the monthly salary to set a monthly pension are as follows :
Average of monthly salary used m basis to set monthly pension = (Total salary used as basis to set payment of SIP under salary scab, payroll stipulated by the State + Total salary used as basis to set payment of SIP of period covered by SIP which are different to salary scale, payroll stipulated by the State) / (Total months covered by SIP)
Note : SIP : Social Insurance Premiums
Firstly, to calculate total gross salary under the government wage scale, by multiplying the average of the gross salary of the last 5-year period (as guidance in point ii and the number of months covered by the social insurance premiums pursuant to the same government wage scale.
Then, to calculate total monthly salary having paid social insurance premiums which are not based on the salary scale and payroll stipulated by the State, by adding t-he total sum of salary covered by social insurance premiums of each month. applicable to the joint venture of private sectors etc., and then plus the total sum of salary covered by social insurance premiums of the two periods and divided by the total months covered by social insurance premiums of the two periods. In the event of the employee enjoying salary paid in foreign currency, such foreign currency shall be converted into Vietnamese currency at the time when he/she retires and calculated pursuant to the exchange rates issued by the State Bank.
For example :
A State employee, who worked from January 1962 to 30 November 1990, the level of his gross salary for the last 5 years of service in the State sector is 300,000 VND. From 1 December 1990, he moved to a joint venture enterprise. On 1 June 1998 he will reach the retirement age of 60. The level of his gross salary changes in the course of working at the JV as follows :
+ From 1-12-1990 to 30-11-1992 : 50 USD/months ;
+ From 1-12-1992 to 30-11-1995 : 65 USD/months ;
+ From 1-12-1995 to 31-5-1998 ; 80 USD/months.
The average of the monthly salary with social insurance premiums payment shall be calculated as follows :
+ Total salaries of months during which social insurance Premiums was paid pursuant to the government wage scale shall be :
300,000 VND x 347 months = 104,100,000 VND.
+ Total salaries of months during which social insurance premiums was paid in the joint venture enterprise :
From 1-12-1990 to 30-11-1992 : 24 months x 50 USD = 1,200 USD
From 1-12-1992 to 30-11-1995 : 36 months x 65 USD = 2,340 USD
From 1-12-1995 to 31-5-1998 : 30 months x 80 USD = 2,400 USD
Total : 90 months = 5,940 USD
The exchange rate : I USD = 11,000 VND
5,940 USD X 11,000 VND = 200,536,500 VND
+ Total salaries of months -with social insurance premiums for both periods : 104,101,000 USD + 200,536,500 USD = 304,636,500 VND.
+ The average of the monthly salary with social in surance premiums payment shall be :
304,636,500 VND : 437 months = 697,108.69 VND.
V. DEATH ALLOWANCE .
1. The minimum monthly salaries which are used as basis to calculate burial service stipulated in Article 31 shall accord with instructions in Point 2, Section III of this Circular.
2. Dependents of the dead employees as stipulated in Article 32 are persons who live in the same house with such employee. In case such persons do not live in the same house with the dead employee but got the main support form such employee when he/she was alive, such persons are also entitled to the monthly allowance for the employee's death.
3. The children who are still going to school shall be entitled to this monthly allowance till they reach the age of 18 stipulated in Item I,
Article 32. They are defined as the children at general school, jobtraining or vocational centres of State or non-State sectors.
4. The number of dependents to be given the monthly death allowance stipulated in Item 2, Article 33 are as follows :
In addition to the four dependents as stipulated, if the employee has more relative(s) who is/are disable or suffer from chronic disease or living a poorer life than that of the neigh bourhood people, such relatives can be considered for allowances. Their cases should be reported by the Directors of the Provincial/City Departments of Labour, War Invalids and Social Affairs to the Ministry of Labour, War Invalids and Social Affairs for review and resclution.
5. Monthly death allowance shall not be given to beneficiaries who have a stable income which ensure them of a reasonable living standard (at the minimum salary level).
6. A one-time death allowance stipulated in Article 34 shall be made available to the family of an employee who dies without any relative to enjoy such allowance.
7. The monthly salary which is used as basis to compute the level of one-time allowance stipulated in Article 35, shall be calculated with formula mentioned in Point 6, Section IV of this Circular.
C. THE SOCIAL INSURANCE FUND, LEVEL OF PAYMENT,
AND RESPONSIBILITY IN PAYING SOCIAL INSURANCE
1. The social insurance fund is formed from the sources Stipulated in Article 36, which :
a) The employer shall pay an amount equal to 15% of the total salary fund. This salary fund is the total,monthly salary contributed by all t-he employees who pay social insurance premiums in their unit which also include adjustments due to employees' ranks, positions, contracts, seniority, cost-ofliving (if any),
b) The employee shall deduct 5% of his/her monthly salary to purchase social insurance. This salary includes adjustments due to employees' ranks, positions, contracts, seniority, and cost-of-living (if any).
2. Employer shall be responsible for contribution to the social insurance fund by means of deductions from staff salaries and his/her own contributions to the same fund.
D. ORGANIZATION AND IMPLEMENTATION OF
SOCIAL INSURANCE
1. Collection and expense of social insurance :
a) Social insurance collection to cover employees' sickness, maternity and labour accidents or occupational diseases shall be exercised by the Vietnam General Labour Federation, in accordance with stipulations in Inter-Ministerial Circular No.05/LB-TT dated 12 January 1994 issued by the Inter-Ministries of Finance and the Vietnam General Labour Federation.
Social insurance collection to cover pension and death allowances shall be carried out in accordance with stipulations in Inter-Ministerial Circulars No.19/LB-TT, dated 7 March 1994 and No.33/LB-TT dated 14 April 1994 issued by the Inter Ministries of Finance, Labour, War Invalids and Social Affairs until a new social insurance organization operates.
b) The Vietnam General Labour Federation shall be responsible for paying social insurance allowances for lickness, matemity and labour accidents or occupational diseases.
- The Ministry of Labour, War Invalids and Social Affairs Shall be responsible for paying social insurance allowances for pension, death and labour inability (previously), in accordance with the Inter-Ministerial Circulars No.22/LB-TT dated 16 June 1989 and No.29/LB-TT dated 25 July 1990 issued by the Inter-Ministries of Finance and Labour, War Invalids and Social Affairs.
c) The valuation of labour ability of employees to determine allowances for early retirement, labour accidents or occupational diseases stipulated in Regulation on Social insurance shall be implemented under Circular No.32/BYT- TT dated 23 August 1976 issued by the Ministry of Health.
2. Procedures and dossiers required in connection with pension and death allowances shall be provided under the following lowing principles :
a) The Heads of offices, units and enterprises (hereinafter the employer), when resolving cases of pension and death allowances, must prepare dossiers of the employees in accordance with stipulations and shall be responsible to the laws for all declarations in such dossiers.
To timely resolve cases of pension, the offices, units or enterprises having employees who are at the age of retirement shall prepare dossiers for such employees in accordance with stipulations and ensure to their legality ; such dossiers shall be deemed valid subject to the consent of the relevant employees.
The employer must send to the local Department of Labour War Invalids and Social Affairs in addition to dossiers relating to pension or death allowances of an employee, his curriculum vitae (in the original) and all original documents relating to the age, length of service, working places, Jobs, salary, social insurance payment and list of dependence of
such employee. Such papers will provide references of his case in the light of social insurance policy.Where the original curriculum vitae is lost due to fire or other natural calamities, such loss must be certified in writing by a concerned State agency and the loser must be held responsible to the laws; for such certifications. At the same time, the employer is also required to send all relevant references such as : birth certificate, papers attesting one's activities in the Party or Youth Union, Trade Union, Armed Forces and one's labour book to be used as the basis for determining social insurance allowance.
b) The Department of Labour, War Invalids and Social Affairs upon receipt of such dossiers, shall review the papers concerning the age, length of service, jobs, working place, salary ect of the relevant employee and shall decide the granting of pensioner's bock and payments of allowances for such employee.
The Department of Labour, War Invalids and Social Affairs shall reject dossiers which do not comply with stipulations, and guide the employers in the preparation of such dossiers.
3. Dossiers for pensioners include :
a) Pension allowance dossiers :
- Decision on the retirement of an employee (2 copies);
- Personal declaration on the length of service, period and level of social insurance premiums payment (2 copies) ;
The forms with similar details issued by the Ministry of Labour, War Invalids and Social Affairs in conjunction with Decision No.215/LDTBXH dated 31 March 1994 to be filed by the relevant employees,
- Medical certificate on reduction of working ability issued by the Heath Valuation. Committee at provincial/city/central levels applicable to cases of retirement in accordance with Items 2 and 3, Article 26.
The same process applies to an employee who ceases to work and wait until the retirement but no date indicating the start of his retirement shall be entered on such papers.
b) One-time allowance dossiers :
Two copies of the decision by the employer attached to two copies of personal declaration of working process covered by social insurance premiums (the same to the employee enjoying the monthly pension) .
c) Death allowance dossiers :
- Notice or certificate of death ;
- Two copies of declaration of working process covered by social insurance of the dead (if the death involves a pensioner, this personal declaration shall be replaced by the dossiers being kept by the Department of Labour, War Invalids and Social Affairs) ;
- Declaration on the number of dependents expecting monthly allowance, to be made by the family of the dead employee ;
- A minutes on the death, due to labour accident or occupational disease (in case of death due to labour accident or occupational disease).
- An official letter of the employer requesting death allowance to be given to the family of the dead employee ;
- An application form of the employee's family with confirmation of local authority thereon, attached to the death dossiers (applicable to the employee who die while enjoying monthly pension, or monthly allowances for labour inability or labour accident or occupational disease).
d) The procedures for the allowances paid on sickness, maternity and the dossiers for the allowances paid on labour accident and occupational disease, shall be implemented in accordance with Inter-Ministerial Circular No.12/TT-LB dated 3 June 1971 issued by the Vietnam General Labour Federation and the Ministry of Health and Circular No.34/TT-TLD dated 13 July 1994 issued by the Vietnam General Labour Federation.
4. A list of diseases which require long treatment in Ap pendix to be attached to this Circular.
5. A list of heavy, hazardous or especially heavy, hazardous occupations or jobs issued by the Ministry of Labour, War Invalids and Social Affairs, shall be temporary implemented in accordance with the following documents :
- Decision No.278/LD-QD dated 13 November 1976 ;
- Decree No.235/HDBT dated 18 September 1985 ;
- Circular No.19/LDTBXH-TT dated 31 December 1990 and other documents issued by the Ministry of Labour, War Invalids and Social Affairs.
6. A list of areas where the area allowance index of 0.5 or more in accordance with stipulations in Circular No.15/LDTBXH-TT dated 2 June 1993.
7. With regard to the employee, who has enjoyed social insurance allowance in accordance with Decree No.43/CP shall be implemented as follows :
- In respect of the employee, who is enjoying the monthly pension, according to this Circular; he/she shall be readjusted the average of the monthly salary which is used for paying social insurance premiums to set his/her pension level to be enjoyed from 1-1-1995.
- The employee, who enjoys a one-time pension, but when retires she/he has paid social insurance premiums for 15 years. or more and reaches the age of 60 or more for a man, and 55 or more far a woman, shall be entitled to the monthly pension in accordance with stipullations in Article 26.
- The employee, who has lost from 31% to 611 of his/her labour ability due to labour accident or occupational disease, already enjoyed a one-time allowance from I July 1994 (inward, according to Article 17 shall be entitled to monthly allowance, and must repay the one-time allowance.
- The female employee, who gives birth from I January 1995 onward shall be entitled to maternity allowance in accordance with stipulations in this Circular.
- The employee, who dies from I January 1995 onward, his/her family shall be entitled to burial service allowance in accordance with the level stipulated in this Circular.
- The employee, who is enjoying the monthly death allowance prior to the executed date of Regulation on Social Insurance, shall be readjusted the enjoyed level equal to 40% of the minimum salary with effect from 1-1995.
This Circular shall be enforceable from I January 1995.
All previous stipulations for social insurance which are cantrary to this Cicular shall be abrogated.
In the course of the implementation, if any difficulty arising, please report to the Ministry of Labour, War Invalid and Social Affairs for review and resolution.
THE MINISTER OF LABOUR, WAR INVALIDS
AND SOCIAL. AFFAIRS
TRAN DINH HOAN
I. LIST OF DISEASES REQUIRING LONG-TERM TREATMENT
(Stipulated under circular 33/TT-LB and dated 25 June 1987
by the Ministry of Health and the General
Confederation of Labour)
1- All types of tuberculosis
2- Mental diseases
3- Epilepsy and psychic trauma
4- Chornic cardiac insufficiency, chornic cardiopulmonary insufficiency. 5- Leprosy
6- Chronic arthritis with complications of muscles, banes and joints .
7- All types of cancer affecting any organs
8- Endocrinological diseases
9- Sequela of cerebral haemorrhage
10- Sequela of wounds of war
11- Sequela of surgical operations and/or therapeutic incidents.
12- General physical weakness due to tortures or imprisonment when active in the revolution.
II. LIST OF OCCUPATIONAL DISEASES FOR WHICH
SUFFERERS ARE ENTITLED CERTAIN SOCIAL BENEFITS
(Stipulated in Inter-Ministerial circulars 08/TT.LB and dated 19 May 1976 and 29/TB-LB
issued by the Ministry of Labour, War Invalids and Social Affairs
and the Vietnam Labour Confederation)
1- Lead poisoning
2- Benzene and analogue poisonings
3- Mercury poisonings
4- Silicatosis (coal-miner's disease)
5- Pneumoconiosis due to inhalation of amiant
6- Manganism
7- X-ray and radio-active poisonings
8- Deafness due to working place noises.
9- Various types of dermatergosis including contact dermatitis
10- Melanoderlnatitis
11- Vibration occupational diseases
12 Pneumoconiosis due to inhalation of cotton
13- Tuberculosis as an occupational disease
14-Hepatitis as an occupational diseasa
15-Leptospirosis
16-Trinitrotoluene poisoning
