Decree No. 01/2003/ND-CP On Amending and Supplementing Certain Provisions of the Social Insurance Regulation issued together with Decree No. 12/CP dated January 26, 1995 of the Government

DECREE

Regarding the amendment and supplementation of certain articles of the Social Insurance Charter issued together with Decree No. 12/CP dated January 26, 1995 of the Government

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THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Labor Code 1994; Law Amending and Supplementing Certain Provisions of the Labor Code dated April 2, 2002;

Article 5. The registration of internal regulations on labor pursuant to Article 82 of the Labor Code shall be regulated as follows:

DECREE:

Article 1. Amending and supplementing certain provisions of the Social Insurance Charter issued together with Decree No. 12/CP dated January 26, 1995 of the Government based on the Law Amending and Supplementing Certain Provisions of the Labor Code as follows:

1. AMENDING AND SUPPLEMENTING ARTICLE 3 AS FOLLOWS:

''Article 3. The subjects subject to mandatory social insurance include:

1. Workers employed under labor contracts with a term of three months or more and indefinite-term labor contracts in the following enterprises, agencies, and organizations:

a) Enterprises established and operating under the Law on State-Owned Enterprises;

b) Enterprises established and operating under the Enterprise Law;

c) Enterprises established and operating under the Law on Foreign Investment in Vietnam;

d) Enterprises of political organizations, political-social organizations;

d) Individual households engaged in production and business, cooperatives.

e) Administrative agencies, public service organizations, political organizations, political-social organizations, occupational-political-social organizations, other social organizations, and armed forces;

g) Semi-public, private, and individual-owned establishments in cultural, health, education, training, scientific, physical education, and sports sectors, and other public services;

h) Health stations at communes, wards, and towns;

i) Agencies, organizations of foreign countries or international organizations in Vietnam, except where international treaties to which the Socialist Republic of Vietnam is a party provide otherwise.

k) Other organizations employing workers.

4. Workers specified in Points 1, 2, and 3 of this item include trainees and apprentices learning skills to work at enterprises, agencies, and organizations, who also fall within the scope of implementation of the compensation and subsidy regimes for work accidents and occupational diseases.

3. Workers or cooperative members working and receiving wages under labor contracts of at least three months in cooperatives established and operating under the Law on Cooperatives.

4. Workers employed in enterprises, agencies, and organizations specified in Clause 1, Clause 3, and Clause 6 of this Article, working under labor contracts with a term of less than three months, when their labor contracts expire and they continue working or enter into new labor contracts with the same enterprise, organization, or individual, must participate in mandatory social insurance.

5. Workers specified in Clauses 1, 2, 3, 4, and Clause 6 of this Article who go to study, intern, work, or recuperate domestically or abroad while still receiving wages or remuneration are also subject to mandatory social insurance.

6. Workers employed and receiving wages or remuneration under labor contracts with a term of three months or more in agricultural, forestry, fishery, and salt industry enterprises.

For workers employed in agricultural, forestry, fishery, and salt industry enterprises that have implemented land lease agreements, specific regulations apply."

2. Amend and supplement Article 10 as follows:

''Article 10. Female workers who are pregnant or give birth when taking leave according to Articles 11 and 12 of this Charter shall be entitled to maternity benefits".

3. Adding Article 24a as follows:

''Article 24a.

1. Workers participating in mandatory social insurance are entitled to take leave for recuperation and recovery of health in the following cases:

a) Having contributed to social insurance for at least three years at the enterprise, agency, or organization and suffering from reduced health.

b) After treatment due to illness, workplace accidents, or occupational diseases without full recovery.

c) Female workers who are weak after maternity leave.

2. The duration of leave for recuperation and recovery of health ranges from five to ten days per year depending on the degree of reduced health of the worker.

The period of leave for recuperation and recovery of health does not count towards annual leave and does not entitle the worker to wages, except in cases where the enterprise and the worker have agreed otherwise.

3. The cost of leave for recuperation and recovery of health is determined by the Ministry of Labor - Invalids and Social Affairs after consultation with the Ministry of Finance and the General Confederation of Trade Unions of Vietnam.

The Vietnam Social Security organizes management, issuance, and settlement of funds for recuperation and recovery of health for each enterprise, agency, or organization.

4. The funds for implementing leave for recuperation and recovery of health are guaranteed by the social insurance fund at 0.6% of the total actual wage base for social insurance contributions extracted from the 5% fund calculated on the total actual wage base for social insurance contributions of the enterprise, agency, or organization for the three benefit systems of sickness, maternity, and workplace accidents and occupational diseases. In cases where the extracted fund is insufficient to cover the stipulated recuperation and recovery of health allowance, the enterprise, agency, or organization will supplement from welfare funds or transfer to the next year for implementation."

4. Amending and supplementing Article 27 as follows:

a) Amending and supplementing point a of Clause 1 of Article 27 as follows:

''a) A worker who has contributed to social insurance for fifteen years is entitled to a pension equal to 45% of the average monthly wage used as the basis for social insurance contributions, with an additional 3% for female workers and 2% for male workers for each additional year of contribution. The maximum monthly pension is 75% of the average monthly wage used as the basis for social insurance contributions."

b) Amending and supplementing point b of Clause 1 of Article 27 as follows:

''b) For workers receiving a monthly pension lower than the prescribed amount under Clause 2 and Clause 3 of Article 26, the calculation of the pension is as provided in point a of Clause 1 of Article 27, but for each year of early retirement before the age specified in Clause 1 and Clause 2 of Article 25, the average monthly wage used as the basis for social insurance contributions is reduced by 1%.

Specifically, male workers aged 55 to under 60 and female workers aged 50 to under 55 with at least 30 years of social insurance contributions who wish to retire can receive a pension calculated as provided in point a of Clause 1 of Article 27, but there is no reduction of 1% of the average monthly wage used as the basis for social insurance contributions for each year of early retirement."

c) Amending and supplementing Clause 2 of Article 27 as follows:

''2. In addition to the monthly pension, female workers with over 25 years of social insurance contributions and male workers with over 30 years of social insurance contributions, upon retirement, are entitled to a one-time allowance calculated as follows: from the 26th year onwards for female workers and from the 31st year onwards for male workers, each year of contribution entitles them to half (1/2) month of the average monthly wage used as the basis for social insurance contributions, but the maximum is not more than five months."

5. Amending and supplementing Article 28 as follows:

''Article 28.

1. The following cases are entitled to a one-time social insurance allowance, with each year of social insurance contribution counting as one month of the average monthly wage used as the basis for social insurance contributions:

a) Workers who have stopped working and have reached the retirement age or whose work capacity has been reduced by 61% or more due to illness, accidents, occupational diseases, but have not yet accumulated the required social insurance contributions to receive monthly pension benefits as stipulated in Article 25 and Article 26 of this Regulation.

b) Persons who have legally settled abroad.

2. Workers who have stopped working but have not yet reached the retirement age but have accumulated the required social insurance contributions as stipulated in Article 25, Clause 2 and Clause 3 of Article 26 of this Regulation may wait until they reach the retirement age to receive monthly pension benefits or retain their social insurance contribution period to continue contributing when conditions permit.

3. Workers who have stopped working but have not yet reached the retirement age and have not accumulated the required social insurance contributions as stipulated in Article 25 and Article 26 of this Regulation shall be issued a social insurance book and retain their social insurance contribution period to continue contributing when conditions permit, including those listed in the enterprise, agency, or organization's list who stopped working before January 1, 1995 but have not received a one-time allowance.

6. Add the following paragraph at the end of Clause 1 of Article 29:

"For workers who have accumulated social insurance contributions for 15 years or more at wage levels corresponding to heavy, hazardous, or particularly heavy, hazardous work in the wage scale established by the State, if they switch to other work with lower wages, upon retirement, the average wage level of the five consecutive years of heavy, hazardous work will be used as the basis for calculating the retirement pension."

7. Add Article 35a as follows:

"Article 35a. The calculation of the social insurance contribution period for benefit purposes is as follows: a period of social insurance contributions from three months to six months is counted as half (1/2) year; a period exceeding six months is counted as one full year."

8. Add Clause 5 to Article 36 as follows:

"5. Interest income of the fund."

9. Add Article 36a as follows:

"Article 36a. The time that female workers take off work before and after childbirth as stipulated in Clause 1 and Clause 2 of Article 12 and the time that workers take off work to care for newborn adopted children as stipulated in Article 13 of this Regulation shall be counted towards the period for receiving social insurance benefits. During this leave period, neither the worker nor the employer need to contribute to social insurance, which will be covered by the social insurance fund."

Article 2. This Decree takes effect from January 1, 2003.

Repeal Decree No. 93/1998/NĐ-CP dated November 12, 1998 of the Government on amending and supplementing certain provisions of the Social Insurance Regulation issued together with Decree No. 12/CP dated January 26, 1995 of the Government and Decision No. 37/QĐ-TTg dated March 21, 2001 of the Prime Minister on rest and health recovery for workers.

No retroactive adjustment of social insurance benefits for beneficiaries prior to the effective date of this Decree.

Article 3. The Minister of Labor, Invalids, and Social Affairs is responsible for guiding the implementation of this Decree after consulting with the Ministry of Finance, the Ministry of Home Affairs, and the General Confederation of Labor of Vietnam.

Article 4. The Minister of Home Affairs is responsible for guiding the implementation of social insurance benefits for specialized cadres at communes, wards, and towns and workers at commune health stations as stipulated in Clause 1 of Article 1 of this Decree, after consulting with the Minister of Labor, Invalids, and Social Affairs and the Ministry of Finance.

Article 5. The Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, and Chairmen of provincial and centrally-administered city People's Committees are responsible for implementing this Decree.