Circular No. 03/2009/TT-BLDTBXH guiding the implementation of regional allowances for persons receiving pensions, one-time social insurance benefits, disability allowances, and monthly occupational injury and occupational disease allowances according to Government Decree No. 122/2008/NĐ-CP dated December 4, 2008.

CIRCULAR

Guidelines for Implementing Regional Allowance for Retirees, One-time Social Insurance Benefits, Disability Allowances, and Monthly Occupational Injury and Occupational Disease Allowances Pursuant to Decree No. 122/2008/ND-CP dated December 4, 2008 of the Government

Pursuant to Decree No. 122/2008/ND-CP dated December 4, 2008 of the Government on implementing regional allowance for retirees, one-time social insurance benefits, disability allowances, and monthly occupational injury and occupational disease allowances (hereinafter referred to as Decree No. 122/2008/ND-CP), the Ministry of Labor, Invalids and Social Affairs issues guidelines for implementing regional allowance for retirees, one-time social insurance benefits, disability allowances, and monthly occupational injury and occupational disease allowances as follows:

I. APPLICABLE OBJECTS

1. Workers who have ceased work and met the conditions for receiving retirement pay or one-time social insurance benefits from January 1, 2007 onwards, and had previously contributed to social insurance including regional allowance.

2. Those who were receiving retirement pay, disability allowances, occupational injury and occupational disease allowances monthly before January 1, 2007 and are currently receiving regional allowance at their place of permanent registration with regional allowance.

II. BENEFIT REGIME AND CALCULATION METHOD

1. The objects specified in Clause 1 of Section I of this Circular, in addition to receiving retirement pay or one-time social insurance benefits according to regulations, shall also be entitled to a one-time allowance corresponding to the time and amount of regional allowance they contributed to the social insurance fund.

a) The level of one-time allowance for those retiring or receiving one-time social insurance benefits is calculated as follows:

Where:

M: The level of one-time allowance for the period of social insurance contributions including regional allowance;

H_i: regional allowance coefficient i at the location where the worker contributes to social insurance. The regional allowance coefficient i with seven levels being 0.1; 0.2; 0.3; 0.4; 0.5; 0.7 and 1.0 is stipulated in Appendix on the Levels of Regional Allowance of Localities and Units issued together with Joint Circular No. 11/2005/TTLT-BNV-BLDTBXH-BTC-UBDT dated January 5, 2005 of the Ministries of Home Affairs, Labor, Invalids and Social Affairs, Finance, and Ethnic Minorities Commission and subsequent amendments and supplements by the Ministry of Home Affairs;

T_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: number of months contributing to the social insurance fund including regional allowance coefficient H_i;

15%: the rate of contribution to the pension and death benefit fund based on the monthly salary for social insurance contributions of the worker;

L_{Maximum Downhill Gradient}: the minimum wage at the month when retirement pay or one-time social insurance benefits begin.

Example: Mr. A stopped working and received one-time social insurance benefits in May 2008, having previously contributed to social insurance including regional allowance as follows:

The minimum wage at the point in time of May 2008 was 540,000 VND.

The one-time allowance for Mr. A is calculated as follows:

{(0.5 x 24 x 15%) + (0.7 x 24 x 15%)} x 540,000 = 2,332,800 VND

b) In cases where workers fall under Clause 1 of Section I of this Circular and have served as non-commissioned officers, soldiers of the People's Army, and police officers eligible for rank allowance, the level of one-time allowance for periods of social insurance contributions including regional allowance is calculated using the following formula:

Where:

N: the one-time allowance for the period of service as non-commissioned officers, soldiers of the People's Army, and police officers contributing to social insurance including regional allowance;

H_i: regional allowance coefficient at the location of social insurance contributions for non-commissioned officers, soldiers of the People's Army, and police officers eligible for rank allowance;

T_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: number of months contributing to the social insurance fund including regional allowance coefficient H_i for the period of service as non-commissioned officers, soldiers of the People's Army, and police officers;

0.4: rank allowance coefficient for second-grade private;

L_min: the minimum wage at the month when retirement pay or one-time social insurance benefits begin.

2. Objects specified in Clause 2 of Section I of this Circular shall enjoy regional allowance as follows:

a) Regional allowance is determined and paid according to the place of permanent registration and receipt of retirement pay, disability allowances, occupational injury and occupational disease allowances monthly, and is paid concurrently with the monthly payment of retirement pay, disability allowances, occupational injury and occupational disease allowances.

b) The level of regional allowance currently enjoyed is stipulated as follows:

The level of regional allowance stipulated in this Point shall not be adjusted when the minimum wage changes.

c) In cases where there is a change in the place of permanent registration and receipt of retirement pay at a place with regional allowance, the regional allowance shall be enjoyed at the corresponding level according to the regional allowance coefficient at the new location stipulated in Sub-clause b of this Clause; if the new location does not have regional allowance, then the regional allowance shall cease.

III. IMPLEMENTATION

1. The Ministry of Labor, Invalids and Social Affairs shall coordinate with the Ministry of Finance, the Ministry of Home Affairs, the Ministry of Defense, and the Ministry of Public Security to organize guidance and inspection of implementation in accordance with the provisions of Decree No. 122/2008/ND-CP and this Circular.

2. The Vietnam Social Security shall be responsible for implementing the regional allowance regime as prescribed in Decree No. 122/2008/ND-CP and the guidance provided in this Circular.

Retroactive payment of one-time allowance shall be made for those who have ceased work and met the conditions for receiving retirement pay or one-time social insurance benefits from January 1, 2007 onwards but have not yet received the one-time allowance as stipulated in Clause 1 of Section II of this Circular; in cases where those who have retired or ceased work to receive one-time social insurance benefits have passed away, the one-time allowance shall be retroactively paid to their heirs as prescribed.

IV. EFFECTIVE DATE

1. This Circular shall take effect 45 days from the date of issuance; the provisions of this Circular shall apply from January 1, 2007.

2. The provisions set forth in this Circular replace previous regulations on regional allowance for retirees, disability allowances, and monthly occupational injury and occupational disease allowances.

3. Any difficulties encountered during implementation should be reported to the Ministry of Labor, Invalids and Social Affairs for timely research and resolution./.