Circular No. 02/2008/TT-BLDTBXH 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.

CIRCULAR

Guidelines for Implementing Certain Provisions of Decree No. 190/2007/ND-CP dated December 28, 2007 of the Government guiding certain provisions of the Social Insurance Law on voluntary social insurance

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Pursuant to Decree No. 190/2007/ND-CP dated December 28, 2007 of the Government guiding certain provisions of the Social Insurance Law on voluntary social insurance (hereinafter referred to as Decree No. 190/2007/ND-CP), the Ministry of Labor, Invalids and Social Affairs guides the implementation of certain provisions of the Decree as follows:

Part I

APPLICABLE OBJECTS

The persons participating in voluntary social insurance as stipulated in Article 2 of Decree No. 190/2007/ND-CP are Vietnamese citizens aged from 15 to 60 years old for males and from 15 to 55 years old for females, who are not subject to the mandatory social insurance law, including:

1. Workers under labor contracts with a term of less than three months;

2. Non-professional cadres at commune level, village level, and neighborhood level;

3. Persons participating in production, business, and service activities;

4. Members of cooperatives and cooperative unions who do not receive salary or wages;

5. Self-employed workers including those who organize their own labor activities to earn income for themselves;

6. Workers employed for a limited period abroad who have not participated in mandatory social insurance or who have participated in mandatory social insurance but have received a lump-sum social insurance payment;

7. Other participants.

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

Part II

REGIME OF VOLUNTARY SOCIAL INSURANCE

Section 1

RETIREMENT BENEFITS

1. Conditions for Receiving Pension

a) Voluntary social insurance participants meeting the conditions for receiving monthly pension as prescribed in Clause 1, Article 9 of Decree No. 190/2007/ND-CP shall be eligible when they fall into one of the following cases:

a1) Male aged 60 or older, female aged 55 or older, and having contributed to social insurance for at least 20 years;

Example 1: Mr. A was born on January 16, 1971, joined voluntary social insurance from February 2008, and has contributed to voluntary social insurance for 20 years. From February 2031, Mr. A will meet the conditions for receiving monthly pension.

Example 2: Ms. B was born on April 25, 1983, joined voluntary social insurance from March 2008, and has contributed to voluntary social insurance for 20 years. From May 2038, Ms. B will meet the conditions for receiving monthly pension.

a2) Male aged 55 or older, female aged 50 or older, who before joining voluntary social insurance had accumulated at least 20 years of contributions to mandatory social insurance,including at least 15 years working in heavy, hazardous, or dangerous jobs or at least 15 years working in areas with regional allowance coefficient of 0.7 or higher. Mr. C was born on June 20, 1960, joined voluntary social insurance from August 2008, and before that had contributed to mandatory social insurance for 21 years, including 16 years in heavy, hazardous, or dangerous jobs, and is currently preserving his time of mandatory social insurance contribution. From July 2015, Mr. C will meet the conditions for receiving monthly pension.

Example 3: a3)

Voluntary social insurance participants who before joining voluntary social insurance had accumulated at least 20 years of contributions to mandatory social insurance, suffer from a work capacity reduction of 61% or more, and are entitled to a lower monthly pension when they fall into one of the following cases: - Male aged 50 or older, female aged 45 or older;

- Having worked for at least 15 years in particularly heavy, hazardous, or dangerous jobs.

Mr. D was born on June 22, 1960, joined voluntary social insurance from May 2008, and before that had contributed to mandatory social insurance for 20 years and is currently preserving his time of mandatory social insurance contribution.

Example 4: He was assessed by the Medical Examination Board to have a work capacity reduction of 61%. From July 2010, Mr. D will meet the conditions for receiving a lower monthly pension. có 20 năm đóng bảo hiểm xã hội bắt buộc và đang bảo lưu thời gian đóng bảo hiểm xã hội bắt buộc. Ông được Hội đồng giám định y khoa kết luận suy giảm khả năng lao động 61%. Từ tháng 7/2010 ông D đủ điều kiện hưởng lương hưu hằng tháng với mức thấp hơn.

b) Voluntary social insurance participants meeting the conditions for receiving monthly pension as prescribed in Clause 2, Article 9 of Decree No. 190/2007/ND-CP shall be eligible when male aged 60 or older, female aged 55 or older, have contributed to social insurance for at least 15 years or have contributed to mandatory social insurance for at least 15 years without having received a lump-sum social insurance payment and wish to join voluntary social insurance, then they can continue contributing to voluntary social insurance until they have contributed for 20 years to be eligible for monthly pension.

Example 5: Ms. D is 55 years old, has contributed to voluntary social insurance for 17 years and 7 months. Ms. D can continue contributing to voluntary social insurance for 2 years and 5 months to meet the conditions for monthly pension.

Example 6: Mr. E is 60 years old, has contributed to mandatory social insurance for 15 years and 6 months and has not received a lump-sum social insurance payment. Mr. E can continue contributing to voluntary social insurance for 4 years and 6 months to meet the conditions for monthly pension.

2. Monthly Pension Rate

The monthly pension rate as prescribed in Article 10 of Decree No. 190/2007/ND-CP is guided as follows:

a) The ratio of monthly pension is calculated at 45% corresponding to 15 years of social insurance contribution, thereafter each additional year of social insurance contribution adds 2% for males and 3% for females; the maximum rate is 75%.

When calculating the monthly pension rate, the one-time allowance upon retirement as prescribed in Clause 3, Item 1, Part II and the social insurance lump-sum payment as prescribed at point a, Clause 4, Item 1, Part II of this Circular, if the social insurance contribution period includes less than three months, it is not counted; from three months to six months, it is counted as half a year; from over six months to twelve months, it is counted as one year.

Example 7: Mr. G receives pension when he is 60 years old, has contributed to social insurance for 20 years and 7 months, the ratio of monthly pension is calculated as follows:

- Mr. G's social insurance contribution period is 20 years and 7 months, the remaining 7 months are counted as one year, so the number of years of social insurance contribution for calculating the monthly pension of Mr. G is 21 years.

- For the first 15 years, it is calculated at 45%;

- From the 16th year to the 21st year is 6 years, adding: 6 x 2% = 12%;

- The ratio of Mr. G's monthly pension is: 45% + 12% = 57%.

Example 8: Mr. H receives pension when he is 60 years old, has contributed to social insurance for 35 years and 2 months, the ratio of monthly pension is calculated as follows:

- Mr. H's social insurance contribution period is 35 years and 2 months, the remaining 2 months are not counted, so the number of years of social insurance contribution for calculating the monthly pension of Mr. H is 35 years.

- For the first 15 years, it is calculated at 45%;

- From the 16th year to the 35th year is 20 years, adding: 20 x 2% = 40%;

- The total of the two ratios above is: 45% + 40% = 85%;

The ratio of Mr. H's monthly pension is calculated at the maximum rate of 75%.

Example 9: Mrs. K will receive a pension when she reaches 55 years old, with 20 years and 10 months of social insurance contributions, the pension ratio is calculated as follows:

- The period of Mrs. K's social insurance contributions is 20 years and 10 months, the odd months of 10 months are counted as 1 year, so the number of years of social insurance contributions for calculating her pension is 21 years.

- For the first 15 years, it is calculated at 45%;

- From the 16th to the 21st year is 6 years, additional calculation: 6 x 3% = 18%;

- The monthly pension ratio of Mrs. K is: 45% + 18% = 63%.

Example 10: Mrs. E will receive a pension when she reaches 55 years old, with 27 years and 5 months of social insurance contributions, the pension ratio is calculated as follows:

- The period of Mrs. E's social insurance contributions is 27 years and 5 months, the odd months of 5 months are counted as 0.5 years, so the number of years of social insurance contributions for calculating her pension is 27.5 years.

- For the first 15 years, it is calculated at 45%;

- From the 16th to the 27.5th year is 12.5 years, additional calculation: 12.5 x 3% = 37.5%;

- The total of the two ratios above is: 45% + 37.5% = 82.5%;

The monthly pension ratio of Mrs. E is calculated at the maximum level of 75%.

b) The monthly pension amount is calculated as the product of the monthly pension ratio and the average monthly income contribution to social insurance.

Example 11: Mr. G in Example 7 has a pension ratio of 57%, the average monthly income contribution to social insurance is 920,000 VND/month. The monthly pension amount of Mr. G is:

57% x 920,000 VND/month = 524,400 VND/month

Example 12: Mrs. E in Example 10 has a pension ratio of 75%, the average monthly income contribution to voluntary social insurance is 1,050,000 VND/month. The monthly pension amount of Mrs. E is:

75% x 1,050,000 VND/month = 787,500 VND/month

3. One-time allowance upon retirement

The one-time allowance upon retirement as stipulated in Clause 2 Article 11 Decree No. 190/2007/ND-CP is calculated based on the number of years of social insurance contributions, starting from the 31st year for males and the 26th year for females, each year of social insurance contributions is calculated as 0.5 months of the average monthly income contribution to voluntary social insurance, as follows:

Where:

- N: the number of years of social insurance contributions, one year is counted as 12 months.

- M_bqtn : the average monthly income contribution to social insurance as stipulated in Clause 5 Section 1 Part II Circular this.

Example 13: Mr. H in Example 8 has an average monthly income contribution to social insurance of 1,100,000 VND/month. The period of Mr. H's social insurance contributions is calculated as 35 years, the one-time allowance upon retirement of Mr. H is:

(35 – 30) x 0.5 month x 1,100,000 VND/month = 2,750,000 VND

Example 14: Mrs. E in Example 10 has an average monthly income contribution to social insurance of 1,050,000 VND/month. The period of Mrs. E's social insurance contributions is calculated as 27.5 years, the one-time allowance upon retirement of Mrs. E is:

(27.5 – 25) x 0.5 month x 1,050,000 VND/month = 1,312,500 VND

4. Level of one-time social insurance benefit

a) The level of one-time social insurance benefit as stipulated in Clauses 1 and 2 Article 14 Decree No. 190/2007/ND-CP It is calculated as follows:

The level of one-time social insurance benefit = N x 1.5 x M_bqtn

Where:

- N: the number of years of social insurance contributions, one year is counted as 12 months.

- M_bqtn : the average monthly income contribution to social insurance as stipulated in Clause 5 Section 1 Part II Circular this.

Example 15: Mrs. H requests to receive a one-time social insurance benefit, the period of social insurance contributions is 18 years, the average monthly income contribution to social insurance is 950,000 VND/month. The level of one-time social insurance benefit of Mrs. H is calculated as follows:

18 x 1.5 months x 950,000 VND/month = 25,650,000 VND

Example 16: Mr. L requests to receive a one-time social insurance benefit, the period of social insurance contributions is 16 years and 8 months, calculated as 17 years, the average monthly income contribution to social insurance is 1,100,000 VND/month. The level of one-time social insurance benefit of Mr. L is calculated as follows:

17 x 1.5 months x 1,100,000 VND/month = 28,050,000 VND

b) In cases where individuals participating in voluntary social insurance have not contributed for a full year, the level of one-time social insurance benefit as stipulated in Clause 3 Article 14 Decree No. 190/2007/ND-CP is equal to the amount paid; the maximum level is 1.5 months of the average monthly income contribution to social insurance.

Example 17: Mr. M has contributed to voluntary social insurance until November 2008 for 8 months, the monthly income contribution to social insurance is 540,000 VND/month, the social insurance contribution rate for voluntary social insurance in 2008 is 16%. In December 2008, Mr. M requests to receive a one-time social insurance benefit. The level of one-time social insurance benefit of Mr. M is:

8 months x 16% x 540,000 VND/month = 691,200 VND

Example 18: Mrs. N has contributed to voluntary social insurance until December 2008 for 10 months, the monthly income contribution to social insurance is 540,000 VND/month. In January 2009, Mrs. N requests to receive a one-time social insurance benefit.

- The level of one-time social insurance benefit of Mrs. N is calculated as:

10 months x 16% x 540,000 VND/month = 864,000 VND

- The maximum level of one-time social insurance benefit is:

1.5 months x 540,000 VND/month = 810,000 VND

In this case, the level of one-time social insurance benefit of Mrs. N is equal to the maximum level of 810,000 VND.

5. Average monthly income contribution to social insurance

The average monthly income contribution to social insurance as stipulated in Article 16 Decree No. 190/2007/ND-CP is calculated as follows:

Example 19: Mr. N has the following voluntary social insurance contribution history:

The average monthly income contribution to social insurance of Mr. N is calculated as follows:

= 800,833 VND/month

The monthly income contribution to social insurance mentioned above, when calculated, will be adjusted based on the consumer price index as stipulated in Article 18 Decree No. 190/2007/ND-CP.

6. Calculation of retirement benefits for individuals who previously participated in mandatory social insurance before joining voluntary social insurance.

a) Individuals who previously participated in mandatory social insurance and then joined voluntary social insurance, and retain the time of mandatory social insurance contributions, the basis for calculating retirement benefits is the total time of contributions from both types of social insurance.

Example 20: Mr. P has 15 years of mandatory social insurance contributions and preserved time for social insurance contributions, followed by 10 years of voluntary social insurance contributions. The period of social insurance contributions serving as the basis for calculating Mr. P's retirement benefit is 25 years.

b) The average monthly salary, wage, and income for social insurance contributions for individuals who previously participated in mandatory social insurance and preserved their time for mandatory social insurance contributions shall be calculated as follows, pursuant to Article 17 of Decree No. 190/2007/NĐ-CP:

Where:

The average The monthly salary, wage for mandatory social insurance contributions shall be calculated according to the provisions of Article 31 of Decree No. 152/2006/NĐ-CP dated December 22, 2006, and Clauses 4, 5, 6 of Section IV Circular No. 03/2007/TT-BLDTBXH dated January 31, 2007, issued by the Ministry of Labor, Invalids, and Social Affairs, or Article 34 of Decree No. 68/2007/NĐ-CP dated April 19, 2007, and Clause 7 of Section IV Part A Joint Circular No. 148/2007/TTLT/BQP-BCA-BLDTBXH dated September 14, 2007, issued by the Joint Ministries of National Defense, Public Security, and Labor, Invalids, and Social Affairs.

Example 21: In Example 20, Mr. P has 15 years of mandatory social insurance contributions with an average monthly salary, wage for mandatory social insurance contributions of 2,200,000 VND/month and 10 years of voluntary social insurance contributions with total income from voluntary social insurance contributions of 138,000,000 VND. The average monthly salary, wage, and income for social insurance contributions of Mr. P is:

= 1,780,000 VND/month

When calculating the average monthly salary, wage, and income for social insurance contributions, the monthly salary, wage for employees whose remuneration system is determined by the employer and the monthly income for voluntary social insurance contributions shall also be adjusted based on the living cost index as stipulated in Article 32 of Decree No. 152/2006/NĐ-CP dated December 22, 2006, and Article 18 of Decree No. 190/2007/NĐ-CP.

c) The monthly pension is calculated as prescribed in Clause 2 of Section 1 Part II of this Circular..

d) In the case of individuals entitled to a pension as specified in Subpoint a3 of Point a Clause 1 of Section 1 Part II of this Circular, for each year retiring before the age limit, the pension amount decreases by 1%, specifically as follows:

- If the period of social insurance contributions was made under normal working conditions, the age limit is 60 years for men and 55 years for women to calculate the number of years retiring before the age limit as prescribed.

- If the period of mandatory social insurance contributions includes at least 15 years of work in heavy, toxic, dangerous, or extremely heavy, toxic, dangerous jobs; or 15 years of work in areas with a regional allowance coefficient of 0.7 or higher, then the age limit is 55 years for men and 50 years for women to calculate the number of years retiring before the age limit as prescribed.

Example 22: Mr. D, born on June 21, 1960, has 22 years of mandatory social insurance contributions, including 17 years working in areas with a regional allowance coefficient of 0.7, thereafter he preserved his time for mandatory social insurance contributions and voluntarily contributed for an additional 3 years. The total time Mr. D has contributed to social insurance is 25 years, with an average monthly salary, wage, and income for social insurance contributions of 1,650,000 VND/month. Mr. D has a reduced capacity to work by 61%. From July 2010, Mr. D meets the conditions to receive a lower pension and it is calculated as follows:

- The pension ratio of Mr. D is:

+ For the first 15 years, it is calculated at 45%;

+ From the 16th to the 25th year, which is 10 years, an additional 10 x 2% = 20%;

+ Mr. D belongs to the category that uses the age limit of 55 years to calculate the number of years retiring before the age limit, due to retiring 5 years early, the reduction rate is: 5 x 1% = 5%;

+ The monthly pension ratio is: (45% + 20%) - 5% = 60%.

- The monthly pension of Mr. D is:

60% x 1,650,000 = 990,000 VND/month

đ) Individuals participating in voluntary social insurance who previously had a total of 20 years or more of mandatory social insurance contributions, if their monthly pension is lower than the minimum wage, shall be adjusted to the minimum wage.

Example 23: Mr. Q has 1 year and 9 months of voluntary social insurance contributions (10 months at a monthly income of 540,000 VND/month and 11 months at a monthly income of 630,000 VND/month), prior to which he had 20 years and 3 months of mandatory social insurance contributions with an average monthly salary, wage for mandatory social insurance contributions of 1,100,000 VND/month. Mr. Q has a total of 22 years of social insurance contributions. Assuming the national minimum wage in 2009 was 630,000 VND/month. In December 2009, Mr. Q turned 60 years old and met the conditions to receive a monthly pension. Mr. Q's pension is calculated as follows:

- 22 years of social insurance contributions correspond to a pension ratio of 59%;

- The average monthly salary, wage, and income for social insurance contributions of Mr. Q is:

= 1,059,205 VND/month

- The monthly pension of Mr. Q is:

59% x 1,059,205 = 624,931 VND/month

- Since the calculated pension is lower than the national minimum wage, Mr. Q's pension is adjusted to the national minimum wage of 630,000 VND/month.

e) One-time assistance upon retirement is calculated according to the provisions of Clause 3 of Section 1 Part II of this Circular, and each year of social insurance contribution is equivalent to 0.5 months of the average monthly salary, wage, and income for social insurance contributions as stipulated in Subpoint b of Clause 6 of Section 1 Part II of this Circular.

g) The level of social insurance benefits in one lump sum for individuals who previously participated in mandatory social insurance and preserved their time for mandatory social insurance contributions before participating in voluntary social insurance is calculated according to the provisions of Clause 4 of Section 1 Part II of this Circular, and each year of social insurance contribution is equivalent to 1.5 months of the average monthly salary, wage, and income as stipulated in Subpoint b of Clause 6 of Section 1 Part II of this Circular.

7. Time of receiving the pension

The time when the pension is enjoyed according to Clause 4, Article 35 of Decree No. 190/2007/NĐ-CP shall be counted from the month immediately following the month in which the social insurance organization receives complete valid files (social insurance book, individual declaration form according to the model of the Vietnam Social Security) of voluntary social insurance participants who meet the conditions for enjoying the pension.

8. Time point for temporarily suspending monthly pension

The time point for temporarily suspending monthly pension as stipulated in Article 20 of Decree No. 190/2007/NĐ-CP shall be calculated from the month immediately following the month in which the person receiving the monthly pension begins serving a prison sentence without being granted probation, or illegally leaving the country, or being declared missing by a court.

Section 2

FUNERAL BENEFITS REGIME

1. One-time bereavement allowance amount for voluntary social insurance participants who die

a) The one-time bereavement allowance amount for relatives of voluntary social insurance contributors who have contributed for at least one year as prescribed in Clause 1, Article 23 of Decree No. 190/2007/NĐ-CP shall be calculated as follows:

One-time bereavement allowance amount = N x 1.5 x M_bqtn

Where:

- N: the number of years of social insurance contributions, one year is counted as 12 months. If there are fractional months of social insurance contributions, they shall be calculated as prescribed in Point a, Clause 2, Section 1, Part II of this Circular.

- M_bqtn : the average monthly income contribution to social insurance as stipulated in Clause 5 Section 1 Part II Circular this.

Example 24: Mr. N in Example 19 has contributed voluntarily for 6 years, with an average monthly income for voluntary social insurance contributions of 800,833 VND/month, and died in March 2014. The one-time bereavement allowance amount for his relatives is calculated as follows:

6 x 1.5 months x 800,833 VND/month = 7,207,500 VND

Example 25: Mr. S has contributed voluntarily for 4 years and 4 months and is currently preserving the contribution period, with an average monthly income for social insurance contributions of 950,000 VND/month, and died in October 2015.

- The voluntary social insurance contribution period of 4 years and 4 months is calculated as 4.5 years;

- The one-time bereavement allowance amount for his relatives is calculated as follows:

4.5 x 1.5 months x 950,000 VND/month = 6,412,500 VND

b) In cases where voluntary social insurance participants have not contributed for a full year, the one-time bereavement allowance amount as prescribed in Clause 2, Article 23 of Decree No. 190/2007/NĐ-CP shall be equal to the amount paid; the maximum amount is 1.5 months of the average monthly income for social insurance contributions.

Example 26: Mr. T contributed voluntarily from February 2008 to March 2008 (2 months) with a monthly income for social insurance contributions of 540,000 VND/month, and from April 2008 to June 2008 (3 months) with a monthly income for social insurance contributions of 590,000 VND/month, with a voluntary social insurance contribution rate of 16% in 2008 as prescribed. He died in July 2008, and the one-time bereavement allowance amount for his relatives is calculated as follows:

(2 months x 16% x 540,000 VND/month) + (3 months x 16% x 590,000 VND/month) = 456,000 VND

2. One-time bereavement allowance amount for relatives of those who are receiving a pension and die

The one-time bereavement allowance amount for relatives of those who are receiving a pension as prescribed in Clause 3, Article 23 of Decree No. 190/2007/NĐ-CP is guided as follows:

a) If death occurs within the first two months of receiving the pension, the one-time bereavement allowance amount is calculated as follows:

One-time bereavement allowance amount = 48 x L_h

Where:

nh cơ_h : the current pension amount.

Example 27: Mr. U participated in voluntary social insurance, received a pension from June 2028 with a pension amount of 1,500,000 VND/month, and died in July 2028. The one-time bereavement allowance amount for his relatives is calculated as follows:

48 months x 1,500,000 VND/month = 72,000,000 VND

b) If death occurs from the third month onwards, the one-time bereavement allowance amount is calculated as follows:

One-time bereavement allowance amount = 48 x L_h – (t – 2) x 0.5 x L_h

Where:

nh cơ_h : the current pension amount;

t : the number of months of pension received.

Example 28: Mr. V participated in voluntary social insurance, received a pension from January 2029 with a pension amount of 1,950,000 VND/month, and died in May 2030 (after receiving 16 months of pension). The one-time bereavement allowance amount for his relatives is calculated as follows:

48 months x 1,950,000 VND/month – (16 months – 2 months) x 0.5 x 1,950,000 VND/month

= 79,950,000 VND

3. Bereavement allowance amount for those who previously participated in mandatory social insurance before joining voluntary social insurance

a) Those who have contributed to mandatory social insurance for at least 15 years and die will have their relatives entitled to a monthly bereavement allowance as prescribed in Clause 2, Article 36 and Article 37 of Decree No. 152/2006/NĐ-CP dated December 22, 2006, or Clause 2, Article 37 and Article 38 of Decree No. 68/2007/NĐ-CP dated April 19, 2007, issued by the Government.

b) Those who are currently contributing to voluntary social insurance or preserving the contribution period of voluntary social insurance, and who previously contributed to mandatory social insurance for less than 15 years, or those who previously contributed to mandatory social insurance for at least 15 years but do not have relatives eligible for a monthly bereavement allowance, will have their relatives entitled to a one-time bereavement allowance as prescribed for a lump-sum payment of social insurance benefits, calculated as follows:

One-time bereavement allowance amount = N x 1.5 x M_bqtl,tn

Where:

- N: the number of years of social insurance contributions, one year is counted as 12 months. If there are fractional months, they shall be calculated as prescribed in Point a, Clause 2, Section 1, Part II of this Circular.

- M_bqtl,tn : the average monthly salary, wage, and income for social insurance contributions as prescribed in Point b, Clause 6, Section 1, Part II of this Circular.

The minimum one-time bereavement allowance amount is three months of the average monthly salary, wage, and income for social insurance contributions.

c) Those who are currently receiving a pension and have contributed for less than 15 years to mandatory social insurance, or those who have contributed for at least 15 years to mandatory social insurance but do not have relatives eligible for a monthly pension, will have their relatives entitled to a one-time bereavement allowance, calculated as prescribed in Clause 2, Section 2, Part II of this Circular; the minimum amount is three months of the current pension amount before death.

Part III

VOLUNTARY SOCIAL INSURANCE FUND

1. Contribution Method

The contribution method of voluntary social insurance participants as prescribed in Clause 1, Article 26 of Decree No. 190/2007/NĐ-CP is guided as follows:

a) People participating in voluntary social insurance register with the social insurance organization in one of the following three methods:

a1) Monthly contributions;

a2) Quarterly contributions;

a3) Contributions every six months.

b) The contribution time is defined as follows:

b1) Within the first 15 days for monthly contributions;

b2) Within the first 45 days for quarterly contributions;

b3) Within the first three months for contributions every six months.

2. Monthly Contribution Amount

The monthly contribution level of voluntary social insurance participants as stipulated in Clause 3, Article 26 of Decree No. 190/2007/ND-CP shall be guided as follows:

Where:

-_{Maximum Downhill Gradient}: general minimum wage;

- m = 0, 1, 2, ... n

The lowest monthly income level chosen by voluntary social insurance participants is equal to the general minimum wage, and the highest is equal to twenty times the general minimum wage.

b) The percentage rate for voluntary social insurance contributions is prescribed in Point b, Clause 3, Article 26 of Decree No. 190/2007/ND-CP.

Example 29: Ms. S registered to participate in voluntary social insurance from July 2008 with a chosen monthly income level of 890,000 VND/month (corresponding to L_{min 2008} = 540,000 VND/month and m = 7) on a monthly payment basis. The percentage rate for voluntary social insurance contributions in 2008 was 16%. Ms. S's monthly voluntary social insurance contribution in 2008 will be 142,400 VND/month.

Similarly, if m = 0 or m = 1, the corresponding monthly voluntary social insurance contribution in 2008 would be 86,400 VND/month or 94,400 VND/month.

3. Quarterly or biannual contribution levels

a) Participants in voluntary social insurance who choose to contribute quarterly or every six months shall have their contribution level equal to the product of the monthly contribution level as prescribed in Clause 2 above multiplied by three for quarterly payments or by six for biannual payments.

b) In cases where voluntary social insurance participants have been contributing on a quarterly or biannual basis and during that period the government adjusts the general minimum wage, there is no need to make up for the difference in the amount already contributed based on the adjusted general minimum wage.

4. Re-registering the contribution method or the monthly income level as the basis for voluntary social insurance contributions

Voluntary social insurance participants may re-register their contribution method or the monthly income level as the basis for voluntary social insurance contributions with the social insurance organization. The re-registration of the contribution method and contribution level must be carried out at least six months after the previous registration.

Example 30: Mr. X participated in voluntary social insurance from May 2008 and registered with the social insurance organization on a monthly payment basis with a chosen monthly income level with m = 1. Subsequently, he wished to change his contribution method to quarterly and the monthly income level as the basis for social insurance contributions with m = 2. This change could be implemented earliest from November 2008.

5. Suspension of voluntary social insurance contributions

Suspension of contributions to the social insurance fund as stipulated in Article 27 of Decree No. 190/2007/ND-CP shall be guided as follows:

a) A participant in voluntary social insurance is considered suspended when they cease making contributions and do not request a one-time social insurance benefit.

Example 31: Mr. Y participated in voluntary social insurance from February 2008 to June 2009. From July 2009, Mr. Y ceased making voluntary social insurance contributions and did not request a one-time social insurance benefit. In this case, Mr. Y is considered to have suspended voluntary social insurance contributions.

b) Those who are temporarily suspended, if they wish to continue making voluntary social insurance contributions, must re-register their contribution method and the monthly income level as the basis for voluntary social insurance contributions with the social insurance organization. The re-registration of the contribution method and contribution level must be carried out at least three months after the participant stops making contributions.

Example 32: Mr. Y in Example 31, suspended voluntary social insurance contributions from July 2009. If he wishes to continue making voluntary social insurance contributions, he must re-register his contribution method and the monthly income level as the basis for voluntary social insurance contributions starting from October 2009 onwards.

Part IV

IMPLEMENTING PROVISIONS

1. This Circular takes effect fifteen days from the date of publication in the Official Gazette.

2. The provisions set forth in this Circular apply fromJanuary 1, 2008.

3. During implementation, any difficulties should be reported to the Ministry of Labor, Invalids and Social Affairs for timely supplementary guidance within its scope and authority./.