Circular No. 02/1999/TT-BLDTBXH guiding the implementation of Decree No. 93/1998/NĐ-CP dated November 12, 1998 of the Government on amending and supplementing certain articles of the Social Insurance Regulation issued together with Decree No. 12/CP dated January 26, 1995 of the Government.

CIRCULAR

Guidelines for Implementing Decree No. 93/1998/NĐ-CP dated November 12, 1998 of the Government on Amending and Supplementing Certain Provisions of the Social Insurance Regulations issued together with Decree No. 12/CP dated January 26, 1995 of the Government.

concerning 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.

Decree No. 12/CP dated January 26, 1995 of the Government. After receiving the opinion of the Ministry of Finance in Circular No. 24-TCHCSN dated January 4, 1999, the Ministry of Labor, Invalids, and Social Affairs guides the implementation as follows:

 

Implementation of Decree No. 93/1998/NĐ-CP of the Government amending and supplementing certain provisions of the Social Insurance Regulations issued together with Decree No. 12/CP dated January 26, 1995 of the Government. After receiving comments from the Ministry of Finance in Circular No. 24-TCHCSN dated January 4, 1999, the Ministry of Labor, Invalids, and Social Affairs provides guidance as follows: Workers retiring under the provisions mentioned above, if they have more than 30 years of social insurance contributions, shall be entitled to a one-time allowance upon retirement, for each year beyond the 31st year of contributions, an additional one-time allowance equal to 0.5 times the average monthly wage used as the basis for calculating the pension, with a maximum not exceeding five months.

I. BENEFITS ELIGIBLE

1. Benefits for workers retiring early compared to the provisions of Article 25 of the Social Insurance Regulations, amended and supplemented by Clause 1 of Article 1 of Decree No. 93/1998/NĐ-CP are stipulated as follows:

a) For workers in ordinary occupations.

Men aged 50 to under 60 years old, women aged 45 to under 55 years old, and having contributed to social insurance for at least 20 years, if they have a reduced work capacity of 61% or more, the calculation of retirement pension shall be carried out according to the provisions of Point a, Clause 1, Article 27 of the Social Insurance Regulations, but for each year of retirement before the age of 60 for men and 55 for women, the average monthly salary used as the basis for social insurance contributions will be reduced by 1%.

Example: MR. DANG VAN X retired on December 1, 1998, at the age of 58, with 28 years of social insurance contributions, and has a reduced work capacity of 61%. The monthly retirement pension ratio for Mr. X is calculated as follows:

The percentage for calculating the retirement pension according to the provisions of Point a, Clause 1, Article 27 of the Social Insurance Regulations:

15 years at 45%,

From the 16th to the 28th year, an additional 26%, Total: 71%.

The percentage reduction due to retiring before the age of 60: (60 years - 58 years) x 1% - 2%.

The percentage for calculating the retirement pension according to Decree No. 93/1998/NĐ-CP is: 71% - 2% = 69%.

b) For workers who have worked for at least 15 years in heavy, hazardous, or dangerous jobs; 15 years in areas with regional allowances of 0.7 or higher, or 10 years of actual service in battlefields B, C, and K.

Men aged 50 to under 55 years old, women aged 45 to under 50 years old, and having contributed to social insurance for at least 20 years, if they have a reduced work capacity of 61% or more, the calculation of retirement pension shall be carried out according to the provisions of Point a, Clause 1, Article 27 of the Social Insurance Regulations, but for each year of retirement before the age of 55 for men and 50 for women, the average monthly salary used as the basis for social insurance contributions will be reduced by 1%.

Example: MR. TRAN VAN N retired on January 1, 1999, at the age of 50, with 29 years of social insurance contributions (including 15 years in heavy, hazardous work), and has a reduced work capacity of 61%.

The monthly retirement pension ratio for Mr. N is calculated as follows:

The percentage for calculating the retirement pension according to the provisions of Point a, Clause 1, Article 27 of the Social Insurance Regulations:

15 years at 45%.

From the 16th to the 19th year, an additional 28%, Total: 73%.

The percentage reduction due to retiring before the age of 55: (55 years - 50 years) x 1% = 5%.

The percentage for calculating the retirement pension according to Decree No. 93/1998/NĐ-CP is: 73% - 5% = 68%.

c) Workers who have worked for at least 15 years in particularly heavy, hazardous, or dangerous jobs, have contributed to social insurance for at least 20 years, and have a reduced work capacity of 61% or more (regardless of age) shall calculate their retirement pension according to the provisions of Point a, Clause 1, Article 27 of the Social Insurance Regulations, but for each year of retirement before the age of 55 for men and 50 for women, the average monthly salary used as the basis for social insurance contributions will be reduced by 1%.

NGUYEN VAN T has contributed to social insurance for 25 years, including 15 years in particularly heavy, hazardous jobs such as repairing electromechanical equipment in underground mines.

Example: Due to poor health, Mr. T was examined by the Medical Examination Board and concluded that he had a reduced work capacity of 61% and was allowed to retire in February 1999, when he was 48 years old.

The monthly retirement pension ratio for Mr. T is calculated as follows:

The percentage for calculating the retirement pension according to the provisions of Point a, Clause 1, Article 27 of the Social Insurance Regulations:

Total: 65%.

15 years at 45%.

From year 16 to year 25, add 20%.

The percentage reduction due to retiring before the age of 55: (55 years - 48 years) x 1% = 7%.

The percentage for calculating the retirement pension according to Decree No. 93/1998/NĐ-CP is: 65% - 7% = 58%.

d) Workers who meet all of the following conditions when retiring shall be entitled to a monthly retirement benefit, with the retirement pension ratio calculated according to the provisions of Point a, Clause 1, Article 27 of the Social Insurance Regulations, without any percentage reduction:

Men aged 55 to under 60 years old, women aged 50 to under 55 years old, not requiring a work capacity assessment;

Having contributed to social insurance for at least 30 years;

Voluntarily submitting a resignation to receive retirement benefits.

Mr. NGUYEN NGOC Q voluntarily retired in January 1999, at the age of 55, with 30 years of work experience and social insurance contributions. The retirement pension ratio for Mr. Q is fully calculated at 75%.

Example: Workers retiring under the provisions of points a, b, and c above, if they have contributed to social insurance for over 30 years, will receive a lump-sum payment upon retirement, starting from the 31st year, with each additional year of contribution entitling them to a lump-sum payment equal to 0.5 times the average monthly salary used as the basis for calculating the retirement pension, with a maximum of five months.

Workers retiring under the provisions set forth in points a, b, and c above, if they have contributed to social insurance for more than thirty years, shall be entitled to a one-time allowance upon retirement, from the thirty-first year onwards, with each additional year of social insurance contribution entitling them to a one-time allowance equal to 0.5 times the average monthly wage used as the basis for calculating their pension, with a maximum not exceeding five months.

2. Calculation of the average monthly salary used as the basis for calculating the retirement pension for workers who have worked for at least 15 years in heavy, hazardous, or dangerous jobs according to Clause 2 of Article 1 of Decree No. 93/1998/NĐ-CP is stipulated as follows:

a) The applicable subjects are those who have been classified into levels of the wage scale for heavy, hazardous, or dangerous jobs or particularly heavy, hazardous, or dangerous jobs and have contributed to social insurance for at least 15 years based on these wage levels.

b) During the period of at least 15 years of wages for heavy, hazardous work, workers may choose any consecutive 5-year period (continuous) with the highest wage levels to serve as the basis for calculating the retirement pension.

Example: Mr. NGUYEN VAN K met the conditions for retirement in February 1999, having contributed to social insurance for 15 years based on the wages for heavy, hazardous work, then transferred to another job with a specialist salary until retirement. Mr. K's process of receiving wages and contributing to social insurance is as follows:

From January 1970 to December 1974, worked in heavy and hazardous jobs with a mechanical wage of 331.5 dong converted according to the factor of 2.49;

From January 1975 to December 1980, worked in heavy and hazardous jobs with a mechanical wage of 352.5 dong converted according to the factor of 3.05;

From January 1981 to December 1985, worked in heavy and hazardous jobs with a mechanical wage of 375 dong converted according to the factor of 3.73;

From January 1986 to January 1999, switched to lighter work with a lower salary, before retirement received a specialist grade 6 salary according to the factor of 3.06.

The salary basis for calculating the pension of Mr. K will be calculated according to the provisions of Decree No. 93/1998/NĐ-CP: calculated based on the average salary paid for social insurance of the highest five consecutive years (January 1981 to December 1985) at a rate of 3.73.

Example 2: Mr. Nguyen Van H is a driver worker eligible to retire in January 1999, having 15 years of work experience and social insurance contributions at the heavy job wage level, but the salary had many different high and low periods: From January 1975 to December 1977, drove trucks with a load capacity of 16.5 tons, received a grade 2 salary of 372 dong converted according to the factor of 2.56;

From January 1978 to December 1980, drove trucks with a load capacity of 40 tons, received a grade 2 salary of 438 dong converted according to the factor of 3.27;

From January 1981 to December 1983, drove trucks with a load capacity of 25 tons, received a grade 2 salary of 394 dong converted according to the factor of 2.98;

From January 1984 to December 1986, drove trucks with a load capacity of 14 tons, received a grade 3 salary of 372 dong converted according to the factor of 3.07;

From January 1987 to December 1989, drove trucks with a load capacity of 30 tons, received a grade 3 salary of 438 dong converted according to the factor of 3.73;

From January 1990 until retirement, switched to driving small cars with a lower salary according to the factor of 2.73.

The method for calculating the average monthly salary as the basis for calculating the monthly pension of Mr. H is carried out as follows:

Mr. H has two periods with the highest salary rates of 3.27 and 3.73, but not consecutively, so the salaries of these two periods cannot be combined to calculate the highest consecutive average salary.

In this case, the calculation of the highest average salary for the five consecutive years from January 1985 to December 1989 is based on the following rates:

From January 1985 to December 1986, the salary is calculated according to the factor of 3.07;

From January 1987 to December 1989, the salary is calculated according to the factor of 3.73.

The calculation of the pension for the subjects specified in Points a and b above does not apply to workers receiving salaries that do not belong to the scale or table of wages prescribed by the State.

3. During the time female workers take maternity leave as stipulated in Clause 3 Article 1 of Decree No. 93/1998/NĐ-CP, workers do not have to pay 5% of their monthly salary and employers do not have to pay 15% of the salary for them, corresponding to the time workers are allowed to rest according to the regulations. This period is defined as follows:

a) The time female workers take maternity leave within four months, five months, or six months, and additional time off due to multiple births as stipulated in Clauses 1 and 2 of the Social Insurance Regulations.

b) The time workers take off to care for newborn adopted children legally as stipulated in Article 13 of the Social Insurance Regulations.

This provision does not apply to cases of additional leave stipulated in Clause 3 Article 12 of the Social Insurance Regulations.

II. IMPLEMENTATION PROVISIONS

1. Regarding the procedures and documents for reviewing social insurance benefits for the subjects specified in this Circular shall be implemented according to current regulations. Specifically, individuals falling under the benefit provisions specified in Sub-item d Point 1 Section I of this Circular must also submit an application from the worker.

2. This Circular takes effect fifteen days after the issuance of Decree No. 93/1998/NĐ-CP dated November 12, 1998.

There is no question of recalculating the benefits for those who have already received social insurance benefits before the effective date of Decree No. 93/1998/NĐ-CP dated November 12, 1998.

3. Apart from the amendments and supplements provided for in this Circular, all other contents previously regulated in the Social Insurance Regulations issued together with Decree No. 12/CP dated January 26, 1995 of the Government and Circular No. 06/LĐTBXH-TT dated April 4, 1995 of the Ministry of Labor, War Invalids and Social Affairs remain valid.

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