Circular No. 01/2016/TT-BLDTBXH detailing and guiding the implementation of certain provisions of the Social Insurance Law regarding voluntary social insurance.

 

 

CIRCULAR

Detailed regulations and guidance on implementation of certain provisions

of the Social Insurance Law on voluntary social insurance

 

Pursuant to Resolution No. 104/2023/QH15 dated November 10, 2023 of the National Assembly on the state budget estimate for 2024;

Based on Resolution No. 93/2015/QH13 dated June 22, 2015 of the National Assembly regarding the implementation of policies for receiving one-time social insurance benefits for workers;

Based on Decree No. 106/2012/NĐ-CP dated December 20, 2012 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor - Invalids and Social Affairs;

Pursuant to Decree No. 134/2015/NĐ-CP dated December 29, 2015 of the Government detailing certain provisions of the Social Insurance Law regarding voluntary social insurance;

At the proposal of the Director of the Social Insurance Department,

guiding the implementation of the provisions on unit price of wage packages, actual wage fund of employees, and Management Board stipulated in Article 7 and Article 8 detailing and guiding the implementation of certain provisions of the Social Insurance Law on voluntary social insurance.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates detailed guidance on implementing Article 76 of the Social Insurance Law and certain provisions of Decree No. 134/2015/NĐ-CP dated December 29, 2015 of the Government detailing certain provisions of the Social Insurance Law on voluntary social insurance (hereinafter referred to as Decree No. 134/2015/NĐ-CP).

Article 2. Applicability

1. The person participating in voluntary social insurance as prescribed in Clause 1, Article 2 of Decree No. 134/2015/NĐ-CP is a Vietnamese citizen aged 15 years or older and not subject to mandatory social insurance according to the laws on social insurance, including:

a) Workers under labor contracts with terms less than three months before January 1, 2018; workers under labor contracts with terms less than one month from January 1, 2018 onwards;

b) Persons engaged in non-professional duties at village, hamlet, commune, ward, neighborhood, area, street;

c) Domestic workers;

d) Persons involved in production, business, service activities without salary;

đ) Non-salaried members working in cooperatives, cooperative unions;

e) Farmers, self-employed workers including those who organize their own labor activities to earn income for themselves and their families;

g) Workers who have reached the age requirement but have not met the time contribution requirement to receive pension benefits according to the laws on social insurance;

h) Other participants.

The above-mentioned subjects shall be collectively referred to as voluntary social insurance participants.

2. Agencies, organizations, and individuals related to voluntary social insurance.

Chapter II

REGIME OF VOLUNTARY SOCIAL INSURANCE

Section 1

RETIREMENT BENEFITS

Article 3. Monthly pension amount

1. The monthly pension amount is calculated according to the provisions of Clause 1, Article 3 of Decree No. 134/2015/NĐ-CP.

2. The rate of monthly pension benefit is implemented according to the provisions of Clause 2, Article 3 of Decree No. 134/2015/NĐ-CP. When calculating the rate of monthly pension benefit, if there are fractional months of social insurance contributions ranging from one month to six months, they are counted as half a year; from seven months to eleven months, they are counted as one year.

Example 1: Mr. A receives his pension from October 2016, with 28 years and 3 months of social insurance contributions, and an average monthly income for social insurance contributions of 5,000,000 VND/month. The calculation of Mr. A's monthly pension amount is as follows:

- The rate of Mr. A's monthly pension:

+ Mr. A's social insurance contribution period is 28 years and 3 months, with 3 months counted as half a year, so the number of years of social insurance contributions for calculating the pension is 28.5 years.

+ The first 15 years are calculated at 45%;

+ From the 16th to the 28.5th year, which is 13.5 years, additional calculation: 13.5 x 2% = 27%;

The rate of Mr. A's monthly pension is: 45% + 27% = 72%.

- Mr. A's monthly pension amount is:

72% x 5,000,000 VND/month = 3,600,000 VND/month.

Example 2: Ms. A receives her pension from May 2017, with 26 years and 10 months of social insurance contributions, and an average monthly income for social insurance contributions of 3,000,000 VND/month. The calculation of Ms. A's monthly pension amount is as follows:

- The rate of Ms. A's monthly pension:

+ Ms. A's social insurance contribution period is 26 years and 10 months, with 10 months counted as one year, so the number of years of social insurance contributions for calculating the pension is 27 years.

+ The first 15 years are calculated at 45%;

+ From the 16th to the 27th year, which is 12 years, additional calculation: 12 x 3% = 36%;

+ The total of the two rates above is: 45% + 36% = 81%;

The rate of Ms. A's monthly pension is calculated at the maximum level of 75%, corresponding to 25 years of social insurance contributions.

- Ms. A's monthly pension amount is:

75% x 3,000,000 VND/month = 2,250,000 VND/month.

In addition to the monthly pension amount mentioned above, Ms. A also receives a one-time allowance upon retirement for the number of years of social insurance contributions exceeding 25 years. The amount of the one-time allowance upon retirement is calculated as:

(27 - 25) x 0.5 months x 3,000,000 VND/month = 3,000,000 VND.

Example 3: Mr. B receives his pension from June 2019, with 29 years and 7 months of social insurance contributions, and an average monthly income for social insurance contributions of 7,000,000 VND/month. The calculation of Mr. B's monthly pension amount is as follows:

- The rate of Mr. B's monthly pension is calculated as follows:

+ Mr. B's social insurance contribution period is 29 years and 7 months, with 7 months counted as one year, so the number of years of social insurance contributions for calculating the pension is 30 years.

+ The first 17 years are calculated at 45%;

+ From the 18th to the 30th year, which is 13 years, additional calculation: 13 x 2% = 26%;

The rate of Mr. B's monthly pension is: 45% + 26% = 71%.

- Mr. B's monthly pension amount is:

71% x 7,000,000 VND/month = 4,970,000 VND/month.

Example 4: Ms. C receives her pension from February 2018, with 28 years and 1 month of social insurance contributions, and an average monthly income for social insurance contributions of 6,000,000 VND/month. The calculation of Ms. C's monthly pension amount is as follows:

- The rate of Ms. C's monthly pension:

+ Ms. C's social insurance contribution period is 28 years and 1 month, with 1 month counted as half a year, so the number of years of social insurance contributions for calculating the pension is 28.5 years.

+ The first 15 years are calculated at 45%;

+ From the 16th to the 28.5th year, which is 13.5 years, additional calculation: 13.5 x 2% = 27%;

The rate of Ms. C's monthly pension is: 45% + 27% = 72%.

- Ms. C's monthly pension amount is:

72% x 6,000,000 VND/month = 4,320,000 VND/month.

Article 4. Retirement benefits for persons who previously had mandatory social insurance contributions

1. The period for enjoying retirement benefits for persons who previously participated in voluntary social insurance and had mandatory social insurance contributions is the total time of mandatory social insurance contributions and voluntary social insurance contributions, excluding the time already counted for one-time social insurance benefits.

2. In cases where persons participating in voluntary social insurance have a period for enjoying retirement benefits of twenty years or more, including less than twenty years of mandatory social insurance contributions, the age requirement for receiving pension is fifty years old for men and fifty-five years old for women.

3. In cases where persons participating in voluntary social insurance have at least twenty years of mandatory social insurance contributions, the age requirement for receiving pension shall be implemented according to the provisions of the Law on Mandatory Social Insurance.

Example 5: Ms. D has a period for enjoying retirement benefits of twenty-two years, including twenty years and three months of mandatory social insurance contributions, within which sixteen years were spent working in areas with a regional allowance coefficient of 0.7. Therefore, the age requirement for Ms. D to receive pension is fifty years old.

4. In cases where female workers engaged in full-time or part-time activities at communes, wards, or towns participate in mandatory social insurance, meet the conditions for receiving pension as stipulated in Clause 3, Article 54 of the Law on Social Insurance, and retain their contribution periods while continuing to participate in voluntary social insurance, they may receive pension upon request.

The period for enjoying pension shall be implemented according to the provisions of Clause 1 of this Article. If the period for enjoying pension is less than twenty years, the monthly pension amount shall be implemented according to the provisions of Clause 4, Article 56 of the Law on Social Insurance. If the period for enjoying pension is twenty years or more, the monthly pension amount shall be implemented according to the provisions of Article 74 of the Law on Social Insurance.

Example 6: Ms. E is the Vice President of the Women's Union of a commune, with fifteen years of mandatory social insurance contributions and fifty-five years old. After that, Ms. E retains her contribution periods and continues to participate in voluntary social insurance for two years and eight months before requesting pension. Thus, Ms. E receives pension with a period for enjoying pension of seventeen years and eight months.

5. The average monthly salary and income for calculating pension and one-time benefit shall be implemented according to the provisions of Clause 4, Article 5 of Decree No. 134/2015/NĐ-CP.

Example 7: Mr. E has fifteen years and six months of mandatory social insurance contributions with an average monthly salary of five million one hundred thousand dong per month; ten years and nine months of voluntary social insurance contributions with a total adjusted monthly income for voluntary social insurance contributions (based on consumer price index) of seven hundred seventy-four million dong. The average monthly salary and income for Mr. E's social insurance contributions is:

 

 

 

 

Article 5. Time of receiving retirement pension

1. The time for receiving pension as stipulated in Article 76 of the Law on Social Insurance and Clause 1, Article 6 of Decree No. 134/2015/NĐ-CP shall be implemented as follows:

a) The time for receiving pension is the first day of the month immediately following the birth month of the year when the person meets the conditions for receiving pension as stipulated in Points a and b, Clause 2, Article 5 of Decree No. 134/2015/NĐ-CP. In case the birth month is December, the time for receiving pension is the first day of January of the following year.

Example 8: Ms. D in Example 5 was born on December 1, 1967, with a total of twenty-two years of social insurance contributions from July 1995 to June 2017. The time for receiving pension for Ms. D is calculated from January 1, 2018.

b) In cases where the date of birth cannot be determined (only the year of birth is known), the time for receiving pension is the first day of January of the following year when the person meets the conditions for receiving pension as stipulated in Points a and b, Clause 2, Article 5 of Decree No. 134/2015/NĐ-CP.

c) In cases where persons participating in voluntary social insurance meet the conditions for receiving pension as stipulated in Clause 2, Article 5 of Decree No. 134/2015/NĐ-CP and continue to participate in voluntary social insurance, the time for receiving pension is the first day of the month immediately following the month of stopping voluntary social insurance contributions and making a request for pension.

Example 9: Mr. G was born on August 21, 1957, and had twenty years of social insurance contributions by the end of August 2017. Mr. G continued to participate in voluntary social insurance until the end of December 2017. In December 2017, Mr. G requested pension. The time for receiving pension for Mr. G is calculated from January 1, 2018.

Example 10: Ms. E in Example 6 continued to participate in voluntary social insurance until February 2018, then stopped and requested pension in July 2018. The time for receiving pension for Ms. E is calculated from March 1, 2018, and she is entitled to backdated pension for the months not yet received but without interest.

2. In cases where persons participating in voluntary social insurance make a one-time payment for the remaining years as stipulated in Clause 2, Article 8 of this Circular to meet the conditions for receiving monthly pension, the time for receiving pension is the first day of the month immediately following the month of completing the payment for the remaining years.

Example 11: In August 2016, Ms. G turned fifty-five years old and had seventeen years and six months of social insurance contributions. Ms. G wished to make a one-time payment for voluntary social insurance for the remaining years to meet the conditions for receiving monthly pension. She completed the payment in August 2016. Therefore, the time for receiving pension for Ms. G is calculated from September 1, 2016.

Example 12: By the end of March 2017, Mr. H turned sixty years old and had eighteen years and five months of social insurance contributions. Mr. H wished to make a one-time payment for voluntary social insurance for the remaining years to meet the conditions for receiving monthly pension. He completed the payment in June 2018. Therefore, the time for receiving pension for Mr. H is calculated from July 1, 2018.

Article 6. One-time social insurance

1. Individuals participating in voluntary social insurance shall enjoy one-time social insurance benefits as prescribed in Clause 1, Article 77 of the Social Insurance Law, Clause 1, Article 1 of Resolution No. 93/2015/QH13 dated June 22, 2015 of the National Assembly on implementing policies for one-time social insurance benefits for workers, and Article 7 of Decree No. 134/2015/NĐ-CP.

2. The level of one-time social insurance benefit:

a) The level of one-time social insurance benefit shall be implemented according to the provisions of Point a and Point b, Clause 2, Article 77 of the Social Insurance Law, and Clause 3, Article 1 of Resolution No. 93/2015/QH13 dated June 22, 2015 of the National Assembly on implementing policies for one-time social insurance benefits for workers.

b) The level of one-time social insurance benefit for individuals participating in social insurance with less than one year (12 months) of social insurance contributions shall be calculated at 22% of the total monthly income contributions to social insurance, with a maximum equal to two months of the average monthly income contribution to social insurance. In this case, the monthly income contribution to social insurance for calculating one-time social insurance benefit shall be adjusted based on the consumer price index as stipulated in Clause 2, Article 4 of Decree No. 134/2015/NĐ-CP.

c) When calculating the level of one-time social insurance benefit in cases where the period of social insurance contributions includes partial months, from one month to six months shall be counted as half a year, and from seven months to eleven months shall be counted as one year.

In cases where there is a period of social insurance contributions both before and after January 1, 2014, and the period of contributions before January 1, 2014 includes partial months, those partial months shall be transferred to the period of social insurance contributions starting from January 1, 2014 onwards to serve as the basis for calculating one-time social insurance benefit.

Example 13: Ms. H has contributed to social insurance for ten years and eight months, with an average monthly salary and social insurance contribution income of 4,500,000 VND/month. In August 2016, she submitted a request to enjoy one-time social insurance benefit. Ms. H's social insurance contribution process is as follows:

- From January 2003 to August 2009: Mandatory social insurance contributions (six years and eight months).

- From September 2009 to August 2013: Voluntary social insurance contributions (four years).

Ms. H's total period of social insurance contributions is rounded off to eleven years. Therefore, her one-time social insurance benefit is calculated as follows:

1.5 months/year x 11 years x 4,500,000 VND/month = 74,250,000 VND.

Example 14: Mr. K has contributed to social insurance for nine years and five months (including five years and two months before January 1, 2014), with an average monthly social insurance contribution income of 5,000,000 VND/month. His one-time social insurance benefit is calculated as follows:

- Mr. K has contributed to social insurance for five years and two months before 2014; the two partial months will be transferred to the period starting from 2014. Thus, the number of months of social insurance contributions for calculating one-time social insurance benefit for Mr. K is five years before 2014 and four years and five months of contributions during the period from 2014 onwards (calculated as 4.5 years).

- Mr. K's one-time social insurance benefit is calculated as follows:

(1.5 months/year x 5 years + 2 months/year x 4.5 years) x 5,000,000 VND/month = 82,500,000 VND.

d) The level of one-time social insurance benefit does not include the amount of state support for voluntary social insurance contributions, except in cases prescribed in Point c, Clause 1, Article 77 of the Social Insurance Law. The calculation of the level of one-time social insurance benefit shall be carried out according to the provisions of Point a of this Clause, then deducting the amount of state support for voluntary social insurance contributions.

The amount of state support for voluntary social insurance contributions is calculated as the total amount of state support for each month of voluntary social insurance contributions. The level of support for each month is calculated using the following formula:

Example 15: Mr. K in Example 14, among the total nine years and five months of social insurance contributions, one year and three months (15 months) of voluntary social insurance contributions were supported by the state (assuming the state supports based on the rural poverty standard of 700,000 VND/month and a state support rate of 10% for Mr. K). Mr. K's one-time social insurance benefit is calculated as follows:

- The total amount of state support for Mr. K is:

(0.22 x 700,000 VND/month x 10%) x 15 months = 231,000 VND

- Mr. K's one-time social insurance benefit is:

82,500,000 VND - 231,000 VND = 82,269,000 VND.

Section 2

FUNERAL BENEFITS REGIME

Article 7. Funeral benefits for dependents of voluntary social insurance participants who die after having contributed to mandatory social insurance.

1. The period for receiving funeral benefits for voluntary social insurance participants who previously contributed to mandatory social insurance shall be the total time contributed to both mandatory and voluntary social insurance, excluding the time already counted for one-time social insurance benefit.

2. Burial allowance:

a) The person responsible for burial may receive the burial allowance if the voluntary social insurance participant falls under one of the cases stipulated in Clause 2, Article 8 of Decree No. 134/2015/NĐ-CP.

b) The amount of the burial allowance is ten times the minimum wage at the time of death of the voluntary social insurance participant or the person currently receiving pension benefits.

3. Monthly survivor's allowance shall be implemented according to the provisions of Clause 3, Article 8 of Decree No. 134/2015/NĐ-CP.

4. One-time survivor's allowance:

a) If the voluntary social insurance participant dies or is declared dead by a court, and their dependents do not qualify for monthly survivor's allowance as stipulated in Clause 3, Article 8 of Decree No. 134/2015/NĐ-CP, or if they qualify but prefer to receive a one-time survivor's allowance as stipulated in Clause 4, Article 8 of Decree No. 134/2015/NĐ-CP, then the dependents shall receive a one-time survivor's allowance.

b) The amount of the one-time survivor's allowance shall be implemented according to the provisions of Clause 2, Article 81 of the Social Insurance Law.

c) When calculating the one-time survivor's allowance for individuals who are contributing to social insurance or preserving their contribution period and die with months of contributions, from one month to six months shall be counted as half a year, and from seven months to eleven months shall be counted as one year.

In cases where the calculation is made before January 1, 2014, and there are months of contributions that are not whole years, those months shall be transferred to the period starting from January 1, 2014, to serve as the basis for calculating the one-time survivor's allowance.

Example 16: Mr. M died due to illness, with a contribution period from June 2007 to November 2017, with an average monthly salary and income for social insurance contributions of 6,500,000 VND/month. The one-time survivor's allowance for Mr. M's dependents is calculated as follows:

- Mr. M had six years and seven months of contributions before January 1, 2014, and three years and eleven months of contributions from January 1, 2014 onwards.

- The one-time survivor's allowance for Mr. M's dependents is calculated as follows (six years of contributions before 2014 and 4.5 years of contributions from 2014 onwards):

(1.5 months/year x 6 years + 2 months/year x 4.5 years) x 6,500,000 VND/month = 117,000,000 VND.

d) The one-time survivor's allowance for dependents of pension recipients who die shall be implemented according to the provisions of Clause 3, Article 81 of the Social Insurance Law; the lowest amount is three months of the current pension.

Example 17: Mr. N participated in voluntary social insurance, previously contributing for fifteen years and nine months to mandatory social insurance, receiving a pension from June 2024, and died in July 2024 with a pension of 6,500,000 VND/month. The one-time survivor's allowance for Mr. N's dependents is calculated as follows:

48 months x 6,500,000 VND/month = 312,000,000 VND.

Example 18: Mr. P received a pension from January 2029 and died in May 2030 (receiving 16 months of pension) with a pension of 5,950,000 VND/month. The one-time survivor's allowance for Mr. P's dependents is calculated as follows:

[48 months - (16 months - 2 months) x 0.5] x 5,950,000 VND/month = 243,950,000 VND.

Example 19: Mrs. N received a pension from June 2020 with twenty years of voluntary social insurance contributions (without previous mandatory social insurance participation), and died in July 2028 (receiving 96 months of pension) with a pension of 5,000,000 VND/month. The one-time survivor's allowance for Mrs. N's dependents is calculated as follows:

[48 months - (96 months - 2 months) x 0.5] x 5,000,000 VND/month = 5,000,000 VND.

At this point, Mrs. N's dependents will receive the lowest one-time survivor's allowance equal to three months of the current pension as follows:

3 months x 5,000,000 VND/month = 15,000,000 VND.

 

 

Chapter III

SOCIAL INSURANCE FUND

Article 8. Contribution Methods

1. Voluntary social insurance participants may choose one of the contribution methods prescribed in Points a, b, c, d, and đ Clause 1 Article 9 Decree No. 134/2015/ND-CP.

2. For voluntary social insurance participants who have reached the age requirement for receiving pension but still lack up to 10 years (120 months) of social insurance contributions, in addition to choosing one of the contribution methods prescribed in Clause 1 of this Article, they also have the option to contribute once to make up the full 20 years required to receive a monthly pension.

Example 20: Mr. Q, as of August 2016, was 60 years old with 8 years of social insurance contributions. Mr. Q wishes to continue participating in voluntary social insurance to meet the conditions for receiving a monthly pension and chooses to contribute every two years from September 2016 to August 2018. In September 2018, Mr. Q will have completed 10 years of contributions and will make a single payment for the remaining 10 years. Thus, by the end of September 2018, Mr. Q will be 62 years and 1 month old with 20 years of social insurance contributions, meeting the conditions for receiving a pension according to regulations. The time for calculating his pension will start from October 2018.

Example 21: Ms. Q, as of March 2017, was 55 years old with 15 years and 9 months of social insurance contributions. Ms. Q wishes to continue participating in voluntary social insurance to meet the conditions for receiving a monthly pension and chooses to contribute every six months. By September 2017, Ms. Q will be 55 years and 6 months old with 16 years and 3 months of social insurance contributions. Due to savings, in October 2017, Ms. Q chooses to make a single payment for the remaining 3 years and 9 months and pays immediately in that month. Thus, by the end of October 2017, Ms. Q will be 55 years and 7 months old with 20 years of social insurance contributions, meeting the conditions for receiving a pension according to regulations. The time for calculating her pension will start from November 2017.

Article 9. Contribution Levels

1. The monthly contribution level prescribed in Clause 1 Article 10 Decree No. 134/2015/ND-CP is specified as follows:

Briefly describe technical improvements, production processes, raw materials, designs; new technology applications such as automation, digitalization, clean technology; management, marketing, distribution solutions; products winning awards or certifications related to innovation…):…_dt = 22% x M_{: Monthly voluntary social insurance contribution level.}

Where:

- M_dt: Monthly income level chosen by the voluntary social insurance participant.

- M_{: Monthly voluntary social insurance contribution level.}= CN + m x 50,000 (VND/month)

Briefly describe technical improvements, production processes, raw materials, designs; new technology applications such as automation, digitalization, clean technology; management, marketing, distribution solutions; products winning awards or certifications related to innovation…):…_{: Monthly voluntary social insurance contribution level.} - CN: Poverty threshold standard for rural areas at the time of contribution (VND/month).

Where:

- m: Natural parameter with a value ranging from 0 to n.

The lowest monthly income level chosen by the voluntary social insurance participant is equal to the poverty threshold standard for rural areas, and the highest is 20 times the minimum wage.

From January 2016 to December 2020, the lowest monthly contribution level is 154,000 VND/month; from January 2016 to April 2016, the highest monthly contribution level is 5,060,000 VND/month, and from May 2016 onwards, the highest monthly contribution level is 5,324,000 VND/month until the Government sets a new minimum wage.

Example 22: Ms. P registered to participate in voluntary social insurance from May 2016 with a chosen monthly income level of 4,000,000 VND/month and a monthly contribution method. Ms. P's monthly voluntary social insurance contribution level will be 22% x 4,000,000 VND/month = 880,000 VND/month.

2. Contribution levels for three months, six months, or twelve months at a time are implemented according to the provisions in Clause 2 Article 10 Decree No. 134/2015/ND-CP.

Example 23: Ms. P in Example 22, by September 2016, Ms. P registered to participate in voluntary social insurance with a chosen monthly income level of 4,000,000 VND/month but with a contribution method of every six months. Ms. P's voluntary social insurance contribution level for six months will be 6 months x 880,000 VND/month = 5,280,000 VND.

3. The one-time contribution level for several future years as prescribed in Clause 3 Article 10 Decree No. 134/2015/ND-CP is determined by the following formula:

: One-time contribution level for n future years (VND).

 

 

Where:

- T₁: Monthly income level chosen by the voluntary social insurance participant at the time of contribution (VND/month).

- M_i- r: Average monthly investment return rate of the social insurance fund announced by the Vietnam Social Security for the year preceding the year of contribution (%/month).

- n: Number of years of prior contributions chosen by the voluntary social insurance participant, receiving one of the values from 2 to 5.

- i: Natural parameter with a value ranging from 1 to (n×12).

Example 24: Mr. S registered to participate in voluntary social insurance from September 2016 with a chosen monthly income level of 3,000,000 VND/month and a one-time contribution method for two future years. Assuming the average monthly investment return rate of the social insurance fund announced by the Vietnam Social Security for the year 2015 is 0.628%/month. Mr. S's voluntary social insurance contribution level for two years (from September 2016 to August 2018) will be:

= 14,753,539 VND

 

: One-time contribution level for the remaining years (VND).

Where:

- T₂- t: Remaining number of months, receiving one of the values from 1 to 120.

- M_i- r: Average monthly investment return rate of the social insurance fund announced by the Vietnam Social Security for the year preceding the year of contribution (%/month).

- n: Number of years of prior contributions chosen by the voluntary social insurance participant, receiving one of the values from 2 to 5.

- i: Natural parameter with a value ranging from 1 to t.

Example 25: Ms. Q in Example 21, in October 2017 chose a one-time contribution method for the remaining 3 years and 9 months (45 months) with a chosen monthly income level of 3,000,000 VND/month. Assuming the average monthly investment return rate of the social insurance fund announced by the Vietnam Social Security for the year 2016 is 0.826%/month and Ms. Q's chosen monthly income level is higher than the poverty threshold standard for rural areas set by the Prime Minister at the time of October 2017. Ms. Q's voluntary social insurance contribution level for the remaining 3 years and 9 months (45 months) will be:

= 36,091,122 VND

- HT: Refund amount (VND).

Where:

- T: State contribution support amount (if any).

- M_i- r: Average monthly investment return rate of the social insurance fund announced by the Vietnam Social Security for the year preceding the year of contribution (%/month).

- r: Average monthly investment return rate of the social insurance fund announced by the Vietnam Social Security for the year preceding the year of contribution (%).

- n: Number of prior years of contributions chosen by the voluntary social insurance participant, receiving one of the values from 2 to 5.

- n: The number of years already contributed chosen by the social insurance participant, accepting one of the values from 2 to 5.

- t: The number of remaining months under the payment method that the voluntary social insurance participant has paid.

- i: A natural parameter with a value from (n×12-t+1) to (n×12).

Ví dụ 26: Mr. S in Example 24, at the time of September 2016, paid voluntary social insurance for the next two years (from September 2016 to August 2018). However, starting from January 2018, Mr. S joined mandatory social insurance, the amount refunded to Mr. S is determined by the total amount paid for the months from January 2018 to August 2018 and subtracting the state support contribution (assumed to be 123,200 VND) which is:

Article 10. Changing the Payment Method and Monthly Income Basis for Voluntary Social Insurance Contributions

Participants in voluntary social insurance may change their payment method or monthly income basis for voluntary social insurance contributions according to the provisions of Article 11 of Decree No. 134/2015/ND-CP.

Example 27: Mr. T joined voluntary social insurance from August 2016 and registered with the social insurance organization according to the quarterly payment method, with the selected monthly income basis being 4,500,000 VND/month. Later, Mr. T wishes to switch the payment method to every six months and the monthly income basis for social insurance contributions to 5,000,000 VND/month. Then, this change can be implemented earliest from November 2016.

Article 11. Payment Time

1. The payment time for social insurance for voluntary participants shall be carried out according to the provisions of Article 12 of Decree No. 134/2015/ND-CP.

2. The payment time for social insurance for voluntary participants who choose one of the payment methods specified in Points a, b, c, and d Clause 1 Article 9 of Decree No. 134/2015/ND-CP shall be carried out according to the provisions of Clause 1 Article 12 of Decree No. 134/2015/ND-CP.

3. The amount of late payment surcharge according to Clause 3 Article 12 of Decree No. 134/2015/ND-CP is determined by the following formula:

T₃ = L_đ x (1+r)^{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.}

Where:

- T₃: The amount of late payment surcharge;

- M_đ: The monthly payment amount; the three-month, six-month, or twelve-month payment amount according to Clauses 1 and 2 Article 9 of this Circular.

- t: The number of late payment months;

- r: The average monthly investment return rate of the social insurance fund announced by the Vietnam Social Security of the year immediately preceding the year of payment (%/month);

Example 28: Mr. T in Example 27 pays voluntary social insurance according to the six-month payment method with the payment amount being:

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However, Mr. T did not make payments during the period from November 2016 to February 2017. In June 2017, Mr. T went to the social insurance agency to request to pay the arrears for the six months not paid. The number of late payment months from March 2017 to June 2017 is four months. Assuming the average monthly investment return rate of the social insurance fund announced by the Vietnam Social Security for the year 2016 is 0.826%, Mr. T's late payment surcharge amount is:

6,600,000 VND x (1 + 0.00826)⁴   = 6,820,781 VND

Article 12. State Support for Voluntary Social Insurance Contributions

1. State support for voluntary social insurance contributions according to Clause 1 Article 14 of Decree No. 134/2015/ND-CP shall be implemented as follows:

a) The monthly support amount is calculated using the following formula:

Briefly describe technical improvements, production processes, raw materials, designs; new technology applications such as automation, digitalization, clean technology; management, marketing, distribution solutions; products winning awards or certifications related to innovation…):…_htt = k × 22% × CN

Where:

- k: is the percentage of state support (%), specifically: k = 30% for participants in poor households; k = 25% for participants in near-poor households; and k = 10% for other participants.

- CN: The poverty standard for rural areas serving as the basis for determining the support level, which is the poverty standard set by the Prime Minister at the time of payment (VND/month).

The monthly support amount for voluntary social insurance participants during the period from 2018 to 2020 is 46,200 VND/month for those in poor households; 38,500 VND/month for those in near-poor households; and 15,400 VND/month for other participants.

b) The support amount for participants paying social insurance according to the three-month, six-month, twelve-month, or lump-sum payment methods for multiple future years is calculated using the following formula:

Briefly describe technical improvements, production processes, raw materials, designs; new technology applications such as automation, digitalization, clean technology; management, marketing, distribution solutions; products winning awards or certifications related to innovation…):…_ht = n × k × 22% × CN

Where:

- n: the number of months supported corresponding to the three-month, six-month, twelve-month, or lump-sum payment methods for multiple future years.

- k: is the percentage of state support (%), specifically: k = 30% for participants in poor households; k = 25% for participants in near-poor households; and k = 10% for other participants.

- CN: The poverty standard for rural areas serving as the basis for determining the support level, which is the poverty standard set by the Prime Minister at the time of payment (VND/month).

c) The support amount for participants paying social insurance according to the lump-sum payment method for the remaining years:

Where:

- k: is the percentage of state support (%);

- CN: The poverty standard for rural areas serving as the basis for determining the support level, which is the poverty standard set by the Prime Minister at the time of payment (VND/month).

- n: Number of years of prior contributions chosen by the voluntary social insurance participant, receiving one of the values from 2 to 5.

- i: Natural parameter with a value ranging from 1 to t.

Example 25: Ms. Q in Example 21, in October 2017 chose a one-time contribution method for the remaining 3 years and 9 months (45 months) with a chosen monthly income level of 3,000,000 VND/month. Assuming the average monthly investment return rate of the social insurance fund announced by the Vietnam Social Security for the year 2016 is 0.826%/month and Ms. Q's chosen monthly income level is higher than the poverty threshold standard for rural areas set by the Prime Minister at the time of October 2017. Ms. Q's voluntary social insurance contribution level for the remaining 3 years and 9 months (45 months) will be:

The support amount for voluntary social insurance participants paying according to the lump-sum payment method for the remaining years will be fully transferred once into the pension and death benefit fund in the same year of payment by the state.

Example 29: Ms. T, a member of a near-poor household, joined voluntary social insurance from June 2018 with a chosen monthly income of 800,000 VND/month, using the twelve-month payment method. Assuming the poverty standard for rural areas at the time of June 2018 is 700,000 VND/month, the voluntary social insurance contribution amount of Ms. T from June 2018 to May 2019 will be:

(22% x 800,000 VND/month - 25% x 22% x 700,000 VND/month) x 12 months = 1,650,000 VND.

- From January 2019, Ms. T no longer belongs to a poor or near-poor household, but since she has paid until May 2019, there is no adjustment to the difference in the amount already paid.

- From June 2019, Ms. T switches to the monthly payment method with the same chosen monthly income of 800,000 VND/month (assuming the poverty standard for rural areas at the time of June 2019 remains 700,000 VND/month). The monthly voluntary social insurance contribution amount of Ms. T from June 2019 will be:

22% x 800,000 VND/month - 10% x 22% x 700,000 VND/month = 160,600 VND/month.

If Ms. T continuously participates in voluntary social insurance from June 2018 to May 2028, then the state support for her contributions will cease from June 2028.

2. Refund of State Support for Social Insurance Contributions

a) The amount of State support for social insurance contributions made to individuals receiving one-time social insurance benefits as stipulated in Article 7 of Decree No. 134/2015/NĐ-CP (excluding cases specified in Point c Clause 1 Article 77 of the Social Insurance Law) and voluntary social insurance participants who are entitled to a refund of part of their contributions as stipulated in Clause 6 Article 10 of Decree No. 134/2015/NĐ-CP shall be refunded to the State budget.

b) The refund amount equals the amount of State support for social insurance contributions for voluntary social insurance participants.

Chapter IV

IMPLEMENTING PROVISIONS

Article 13. Effective Date

1. This Circular takes effect from April 4, 2016.

2. The provisions set forth in this Circular shall be applied from January 1, 2016.

3. Circular No. 02/2008/TT-BLDTBXH dated January 31, 2008 of the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of certain provisions of Decree No. 190/2007/NĐ-CP dated December 28, 2007 of the Government guiding certain provisions of the Social Insurance Law on voluntary social insurance shall cease to be effective from the date this Circular takes effect.

Article 14. Implementation Organization

1. Provincial People's Committees under the Central Government shall be responsible for directing the Department of Labor, Invalids, and Social Affairs and related agencies to inspect and urge the implementation of this Circular.

2. The Vietnam Social Security is responsible for implementing this Circular.

3. During the implementation process, if there are any difficulties, please report to the Ministry of Labor, Invalids and Social Affairs for timely research and resolution./.