Joint Circular No. 01/2000/TTLT/BLDTBXH-BTC guiding the implementation of adjustments to pension levels and social insurance benefits pursuant to Government Decree No. 175/1999/NĐ-CP dated December 15, 1999.

JOINT CIRCULAR

||| Guidelines for adjusting pension levels and social insurance benefits in accordance with Decree No. 175/1999/ND-CP dated December 15, 1999 of the Government

social insurance benefits under Decree No. 175/1999/NĐ-CP

dated December 15, 1999 of the Government

Implementing Decree No. 175/1999/NĐ-CP dated December 15, 1999 of the Government on adjusting the minimum wage levels, benefit levels, and living expenses for those receiving pensions, allowances, and living expenses from the State budget, after reaching consensus with the Central Organization Commission, the Government Civil Service Organization Board, and the Joint Ministry of Labour, War Invalids and Social Affairs - Ministry of Finance, hereby provide guidance on adjusting pension levels and social insurance benefits as follows:

I. APPLICABLE OBJECTS:

The subjects eligible for adjustment of pension levels and social insurance benefits as stipulated in Clause 3, Article 1 of Decree No. 175/1999/NĐ-CP dated December 15, 1999 of the Government include: persons receiving pensions (including civil servant and military pensions, police pensions); disability benefits; rubber worker benefits; sickness, maternity, work injury, occupational disease benefits; survivor benefits; village and ward cadres who have retired and are receiving benefits under Decree No. 09/1998/NĐ-CP dated January 23, 1998 of the Government.

II. CALCULATION OF ADJUSTED PENSION LEVELS AND SOCIAL INSURANCE BENEFITS:

The subjects mentioned above in Section I shall have their pension levels and social insurance benefits recalculated as follows:

1. Those currently receiving pensions; disability benefits; work injury, occupational disease benefits; rubber worker benefits; monthly survivor benefits; benefits for village and ward cadres as stipulated in Clause a, Article 4 of Decree No. 09/1998/NĐ-CP dated January 23, 1998 of the Government before January 1, 2000 shall have their pension or benefit levels recalculated as follows:

2. For those starting from January 1, 2000 and thereafter begin to receive pensions or social insurance benefits, they shall enjoy the following:

a. Persons retiring with social insurance contributions based on salary levels set out in the state-defined salary scales, when calculating the pension level, shall be based on the adjusted salary levels according to the minimum wage of 180,000 VND/month as stipulated in Decree No. 175/1999/NĐ-CP dated December 15, 1999.

Example:

A cadre retiring in February 2000 had the following salary contribution history for the last five years before retirement:

- From February 1995 to January 1998, the wage coefficient is 3.35

- From February 1998 to January 2000, the wage coefficient is 3.63

The method for calculating the average wage contribution to social insurance as the basis for calculating the pension is as follows:

- From February 1995 to January 1998, the total wage amount calculated according to the coefficient:

3.35 x 180,000 VND x 36 months = 21,708,000 VND

- From February 1998 to January 2000, the total wage amount calculated according to the coefficient:

3.63 x 180,000 VND x 24 = 15,681,600 VND

The total wage contribution to social insurance over the last five years before retirement is: 21,708,000 VND + 15,681,600 VND = 37,389,600 VND

The average wage contribution to social insurance as the basis for calculating the pension is:

37,389,600 VND : 60 months = 623,160 VND

b. Persons retiring with both social insurance contributions based on salary levels from the state-defined salary scales and contributions based on non-state-defined salary levels, the average salary of the last five years in the state sector shall be calculated based on the minimum wage of 180,000 VND/month for the period of contributions based on the state-defined salary scales.

c. For village and ward cadres who have retired and are receiving benefits as stipulated in Article 4 of Decree No. 09/1998/NĐ-CP dated January 23, 1998 of the Government, the benefit level shall be calculated based on the adjusted living expense level as stipulated in Circular No. 54/1999/TTLT-BTCCBCP-BTC dated December 29, 1999 of the Joint Ministry of Government Civil Service Organization Board - Ministry of Finance.

d. Persons receiving sickness, maternity, work injury, occupational disease, survivor benefits, or one-time social insurance benefits, the benefit level shall be calculated based on the salary or living expense level according to the minimum wage of 180,000 VND.

Specifically, for persons suffering from work injuries or occupational diseases before January 1, 2000, or those who have retired and are receiving one-time benefits, sickness, maternity benefits, or died before January 1, 2000 but still have entitlement periods remaining, the benefits shall be calculated as follows:

- For persons suffering from work injuries or occupational diseases treated and discharged from hospital before January 1, 2000, the one-time benefit shall be paid at the December 1999 benefit level. In cases where treatment began before January 1, 2000 and discharge occurred after January 1, 2000, the benefits shall be paid at the recalculated benefit level based on the minimum wage of 180,000 VND/month.

- For persons who retired and are receiving sickness or maternity benefits before January 1, 2000 but still have entitlement periods remaining after 2000, the benefit level for periods of rest starting from January 1, 2000 onwards shall be calculated based on the minimum wage of 180,000 VND/month.

- For persons who died before January 1, 2000 but whose funeral expenses and one-time benefits have not yet been paid, these shall still be paid at the December 1999 benefit level.

- For persons who retired and are receiving one-time social insurance benefits before January 2000 but received the decision from the Social Insurance Authority to receive such benefits only from January 2000 onwards, the benefit level shall be calculated based on the minimum wage of 180,000 VND/month.

e. For retired military personnel and police officers entitled to additional benefits as stipulated in Decision No. 812/TTg dated December 12, 1995, from January 1, 2000, the additional benefit level shall be calculated based on the minimum wage of 180,000 VND/month.

f. For retired individuals living alone entitled to a benefit of 180,000 VND as stipulated in Decision No. 812/TTg dated December 12, 1995 of the Prime Minister, from January 1, 2000, this benefit shall be adjusted to 270,000 VND/month.

g. Any regional allowance (if applicable) for persons receiving pensions or social insurance benefits shall be calculated based on the minimum wage of 180,000 VND/month from January 1, 2000.

III. IMPLEMENTATION

1. The Ministry of Labor, Invalids and Social Affairs shall coordinate with the Ministry of Finance to guide, inspect, and resolve any difficulties encountered by ministries, sectors, localities, and grassroots units during the implementation of this Circular.

2. The Ministry of Finance shall review and allocate the pension fund and additional allowances for beneficiaries receiving social insurance from the State budget.

3. The Vietnam Social Security shall direct units to implement and prepare reports as follows:

a. Prepare a report on the number of beneficiaries and the increased pension and social insurance benefit fund that the State budget must pay, to be submitted to the Ministry of Finance for review, and simultaneously sent to the Ministry of Labour, War Invalids and Social Affairs by February 2000.

b. Implement the adjustment and payment of the increased amounts for beneficiaries receiving pensions and social insurance benefits funded by the State budget and the social insurance fund. Implement social insurance contributions based on the adjusted minimum wage as stipulated in Decree No. 175/1999/NĐ-CP dated December 15, 1999 of the Government.

4. Ministries and agencies under the central government, People's Committees of provinces and centrally-administered cities shall direct relevant agencies, units, Departments of Labour, War Invalids and Social Affairs, and Departments of Finance and Prices to inspect and urge the implementation of the provisions of this Circular.

5. This Circular takes effect from January 1, 2000.

During the implementation process, if there are difficulties, please reflect them to the Joint Ministry for research and resolution.