CIRCULAR

Guidelines for Implementing Certain Provisions of Decree No. 01/2003/NĐ-CP dated January 9, 2003 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

 

Implementing Decree No. 01/2003/NĐ-CP dated January 9, 2003 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 and the guidance of the Prime Minister in Document No. 1072/VPCP-VX dated March 11, 2003; after receiving comments from the Ministry of Finance, the Ministry of Home Affairs, the Vietnam General Confederation of Labor, and the Ministry of Labor, Invalids and Social Affairs, the following guidelines for implementation are provided:

I- APPLICABLE OBJECTS

The objects subject to mandatory social insurance under Clause 1, Article 1 of Decree No. 01/2003/NĐ-CP include:

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

a/ Enterprises established and operating under the Law on State-Owned Enterprises, including production and business enterprises, public service enterprises; enterprises belonging to the armed forces;

b/ Enterprises established and operating under the Enterprise Law, including limited liability companies, joint-stock companies, partnerships, and private enterprises;

c/ Enterprises established and operating under the Law on Foreign Investment in Vietnam, including joint ventures and wholly foreign-owned enterprises;

d/ Enterprises of political organizations and political-social organizations;

đ/ Individual households engaged in production and business, cooperatives;

e/ Administrative agencies, public institutions, political organizations, political-social organizations, occupational-political organizations, other social organizations, and armed forces; including organizations and units permitted to engage in production, business, and services within administrative agencies, public institutions, the Party, mass organizations, and self-financed people's associations;

g/ Semi-public, privately-run, and individual establishments in cultural, health, education, training, scientific, sports, and other public service sectors;

h/ Health stations in communes, wards, and towns;

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

k/ Other organizations employing workers not specified in Point 1 above.

2- Cadres, civil servants, and public officials according to the Civil Servant Ordinance.

3- Workers and cooperative members employed under labor contracts with a term of at least three months in cooperatives established and operating under the Law on Cooperatives.

4- Workers employed in enterprises, agencies, and organizations specified in Points 1 and 3 of this Section, under labor contracts with a term of less than three months, who continue working or enter into new labor contracts with the enterprise, organization, or individual after the expiration of the labor contract must participate in mandatory social insurance.

5- Workers specified in Points 1, 2, 3, and 4 of this Section, who study, intern, work, or recuperate domestically or abroad while still receiving wages or remuneration paid by the employer also fall within the scope of mandatory social insurance.

II- BENEFIT REGIMES

1- Maternity allowance regime as stipulated in Clause 2, Article 1 of Decree No. 01/2003/NĐ-CP is as follows:

Female workers who are pregnant or give birth (regardless of the number of births) and take leave pursuant to Article 11 and Article 12 of the Social Insurance Regulation shall be entitled to maternity allowance.

2- Calculation of pension amount as stipulated in Point a, Clause 4, Article 1 of Decree No. 01/2003/NĐ-CP is as follows:

a/ Male workers with 15 years of social insurance contributions shall be calculated at 45% of the average monthly wage used as the basis for social insurance contributions. For each additional year of contributions beyond 15 years, an additional 2% shall be added. The maximum monthly pension amount shall be 75% of the average monthly wage used as the basis for social insurance contributions.

Example 1: Mr. Nguyen Van A has 35 years of social insurance contributions. His pension calculation is as follows:

- The first 15 years are calculated at 45%

- Years 16 through 35 total 20 years, calculated as:

20 years x 2%/year = 40%

- The rate for calculating the monthly pension is: 45% + 40% = 85%.

In this case, the monthly pension amount is capped at 75% of the average monthly wage used as the basis for social insurance contributions..

b/ Female workers with 15 years of social insurance contributions shall be calculated at 45% of the average monthly wage used as the basis for social insurance contributions. For each additional year of contributions beyond 15 years, an additional 3% shall be added. The maximum monthly pension amount shall be 75% of the average monthly wage used as the basis for social insurance contributions.

Example 2: Ms. Nguyen Thi B has 26 years of social insurance contributions. Her pension calculation is as follows:

- The first 15 years are calculated at 45%

- Years 16 through 26 total 11 years, calculated as:

11 years x 3%/year = 33%

- The rate for calculating the monthly pension is: 45% + 33% = 78% of the average monthly wage used as the basis for social insurance contributions..

In this case, the monthly pension amount is capped at 75% of the average monthly wage used as the basis for social insurance contributions..

3- Calculation of lower pension amounts as stipulated in Point b, Clause 4, Article 1 of Decree No. 01/2003/NĐ-CP is as follows:

a/ Workers in ordinary occupations.

Male workers aged 50 to under 60 and female workers aged 45 to under 55 with at least 20 years of social insurance contributions and a reduction in work capacity of 61% or more shall have their pensions calculated according to the provisions set out in Point 2 of Section II above, but for each year they retire before age 60 for men and 55 for women, 1% of the average monthly wage used as the basis for social insurance contributions will be reduced.

Example 3: Mr. Nguyen Van C retired on April 1, 2003, at the age of 58, with 28 years of social insurance contributions and a reduction in work capacity of 61%. The monthly pension rate for Mr. C is calculated as follows:

- The percentage for calculating the pension according to the provisions in Point 2 of Section II:

+ The first 15 years are calculated at 45%

+ Years 16 through 28 total 13 years, calculated at an additional 26%

- Total: 45% + 26% = 71%.

- The percentage for reducing the pension due to retiring before age 60:

(60 years - 58 years) x 1% = 2%

- The percentage for calculating the pension is: 71% - 2% = 69%

Example 4: Ms. Tran Thi D retired on February 1, 2003, at the age of 52, with 22 years of social insurance contributions, and was assessed to have a 61% reduction in work capacity. The monthly pension ratio for Ms. D is calculated as follows:

- The percentage for calculating the pension according to Point 2, Section II:

+ The first 15 years are calculated at 45%

+ From the 16th year to the 22nd year, which is 7 years, an additional 21% is added.

Total: 45% + 21% = 66%.

- The percentage reduction due to retiring before the age of 55:

(55 years - 52 years) x 1% = 3%

The percentage rate for calculating the pension is: 66% - 3% = 63%

- The percentage for calculating the pension is: 66% - 3% = 63%.

Workers who have worked for at least 15 years in heavy, hazardous, or dangerous jobs; 15 years in areas with a regional allowance of 0.7 or higher; or 10 years in the South, Laos before April 30, 1975, or Cambodia before August 31, 1989.

Men aged 50 to under 55, women aged 45 to under 50, with at least 20 years of social insurance contributions and a reduction in work capacity of 61% or more shall calculate their pension according to the provisions of Point 2, Section II mentioned above, but for each year of retirement before the age of 55 for men and 50 for women, 1% of the average monthly salary used as the basis for social insurance contributions will be reduced.

Example 5: Mr. Tran Van D, a worker, retired on April 1, 2003, at the age of 50, with 29 years of social insurance contributions (including 15 years of heavy, hazardous work), and was assessed to have a 61% reduction in work capacity.

- The percentage for calculating the pension according to Point 2, Section II:

+ The first 15 years are calculated at 45%

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

+ From the 16th year to the 29th year, which is 14 years, an additional 28% is added.

- The percentage reduction due to retiring before the age of 55:

Total: 45% + 28% = 73%

(55 years old - 50 years old) x 1% = 5%

- The percentage for calculating the pension is: 73% - 5% = 68%.

Example 6: Ms. Nguyen Thi E, a worker, retired on February 1, 2003, at the age of 49, with 22 years of social insurance contributions (including 15 years of heavy, hazardous work), and was assessed to have a 61% reduction in work capacity.

- The percentage for calculating the pension according to Point 2, Section II:

+ The first 15 years are calculated at 45%

+ From the 16th year to the 22nd year, which is 7 years, an additional 21% is added.

The monthly pension ratio for Ms. E is calculated as follows:

Total: 45% + 21% = 66%

- The percentage reduction due to retiring before the age of 50:

(50 years old - 49 years old) x 1% = 1%

- The percentage for calculating the pension is: 66% - 1% = 65%.

Example 7: Mr. Nguyen Van H has 25 years of social insurance contributions, including 15 years of particularly heavy, hazardous work. Due to poor health, Mr. H was examined by the Medical Examination Board and concluded that he had a 61% reduction in work capacity and was granted retirement in February 2003, when he was 48 years old.

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

- The percentage for calculating the pension according to Point 2, Section II:

+ The first 15 years are calculated at 45%

+ From the 16th year to the 25th year, which is 10 years, an additional 20% is added.

Total: 45% + 20% = 65%

- The percentage reduction due to retiring before the age of 55:

(55 years old - 48 years old) x 1% = 7%

- The percentage for calculating the pension is: 65% - 7% = 58%.

d/ Those who retire according to Clause 1, Article 26 of the Social Insurance Charter shall calculate their pension according to the provisions of Point 2, Section II mentioned above.

đ/ Those who retire early according to Clause 2 or Clause 3 of Article 26 of the Social Insurance Charter, if they belong to the category of wage earners who have contributed to social insurance or have been considered to have contributed to social insurance before the age of 16, then depending on the number of years before the age of 16, each year is counted as 2% for men and 3% for women of the average monthly salary used as the basis for social insurance contributions to be deducted from the total percentage of the average monthly salary that must be reduced due to retiring early. However, the maximum deduction cannot exceed the percentage of the average monthly salary that must be reduced.

Example 8: Mr. Nguyen Van Y joined revolutionary activities at the age of 14, and due to a 61% reduction in work capacity, he retired at the age of 54. Mr. Y has 40 years of work experience contributing to social insurance. The calculation of his monthly pension is as follows:

+ The first 15 years are calculated at 45%

+ From the 16th year to the 30th year, which is 15 years, an additional 30% is added.

+ Total: 45% + 30% = 75%

Since Mr. Y retired before the age of 60 by 6 years, the percentage of the average monthly salary that must be reduced due to retiring early is:

(60 years old - 54 years old) x 1% = 6%

But Mr. Y has 2 years of work experience before the age of 16, so he is entitled to deduct 4% of the average monthly salary from the total percentage that must be reduced due to retiring early, which is 6%. Therefore, only 2% remains to be reduced due to retiring early.

Mr. Y's monthly pension is: 75% - 2% = 73%.

e/ Workers who meet all three conditions below upon retirement shall be entitled to a monthly retirement benefit, with the pension ratio calculated according to the provisions of Point 2, Section II mentioned above, without having to reduce the pension ratio due to retiring early.

- Men aged 55 to under 60, women aged 50 to under 55, not required to undergo a work capacity assessment.

- Having at least 30 years of social insurance contributions.

- Submitting a voluntary resignation application to receive retirement benefits.

Example 9: Mr. Nguyen Van K submitted a voluntary retirement application in March 2003, at the age of 55, with 30 years of work experience and social insurance contributions. The pension ratio for Mr. K is calculated as 75%.

4- The calculation of a one-time allowance upon retirement according to Point c, Clause 4, Article 1 of Decree No. 01/2003/NĐ-CP is as follows:

The one-time allowance upon retirement is implemented as follows:

a/ Female workers with over 25 years of social insurance contributions, from the 26th year onwards, for each year of contribution, they receive half (1/2) month of the average monthly salary used as the basis for social insurance contributions, but not exceeding 5 months in total.

Example 10: Ms. Tran Thi L retired at the age of 55 with 30 years of social insurance contributions. The calculation of her one-time allowance upon retirement is as follows: From the 26th year onwards, Ms. L has 5 years of social insurance contributions, thus the one-time allowance is: 5 years x 0.5 months/year = 2.5 months of the average monthly salary used as the basis for social insurance contributions.

b/ Male workers with over 30 years of social insurance contributions, from the 31st year onwards, for each year of contribution, they receive half (1/2) month of the average monthly salary used as the basis for social insurance contributions, but not exceeding 5 months in total.

Example 11: Mr. Vu Van M retired at the age of 60 with 42 years of social insurance contributions. The one-time allowance for his retirement is calculated as follows: From the 31st year onwards, he has 12 years of social insurance contributions, which entitles him to a one-time allowance of: 12 years x 0.5 months/year = 6 months. However, the maximum limit is not more than 5 months. Therefore, Mr. M will receive a one-time allowance upon retirement equal to 5 months of the average monthly salary used as the basis for social insurance contributions.

5- Persons entitled to a one-time social insurance allowance under Clause 1, Article 28, amended and supplemented by Clause 5, Article 1, Decree No. 01/2003/NĐ-CP include:

a/ Workers who are 60 years old for males and 55 years old for females but have less than 15 years of social insurance contributions;

b/ Workers who have reached the retirement age according to Clause 2, Article 25 of the Social Insurance Charter but have less than 20 years of social insurance contributions;

c/ Workers who have been disabled due to illness, accidents, or occupational diseases by at least 61%, but have less than 20 years of social insurance contributions;

d/ Individuals legally emigrating abroad are those permitted by competent state authorities to reside permanently overseas (This does not apply to individuals who leave the country for other purposes and subsequently reside and work abroad);

e/ Workers who were employed under fixed-term contracts concluded in accordance with labor laws before January 1, 2003, and terminated their employment contracts after January 1, 2003, if they voluntarily request it, shall be entitled to a one-time social insurance allowance.

The amount of the one-time social insurance allowance is calculated as follows: For each year of social insurance contributions, the allowance equals one month of the average monthly salary used as the basis for social insurance contributions.

6- Clause 2, Article 28, amended and supplemented by Clause 5, Article 1, Decree No. 01/2003/NĐ-CP is as follows:

Workers who cease working but have not yet reached the age to enjoy pension benefits according to Clause 2 and Clause 3, Article 25, and Clause 2 and Clause 3, Article 26 of the Social Insurance Charter, but have at least 20 years of social insurance contributions, may choose one of the following two methods:

a/ Cease work and wait until reaching the age to receive monthly pension benefits as follows:

- Those with 20 years of regular work, males wait until they are 60 years old, females wait until they are 55 years old;

- Those with 20 years of social insurance contributions, including at least 15 years in heavy, hazardous, extremely heavy, or extremely hazardous jobs; or at least 15 years working in areas with regional coefficients of 0.7 or higher; or at least 10 years working in the South, Laos before April 30, 1975, or Cambodia before August 31, 1989, males wait until they are 55 years old, females wait until they are 50 years old.

Workers who cease work and wait until reaching the age to receive monthly pension benefits must submit a voluntary application for pension benefits, confirmed by the trade union and the head of the unit. Thereafter, the head of the agency, unit, or enterprise must prepare all necessary documents as for retirees and submit them to the Social Insurance Agency for management, monitoring, and processing of monthly pension benefits when the age requirement is met.

During the waiting period, if workers engage in work subject to mandatory social insurance contributions, they continue to make such contributions. The subsequent contribution period is added to the previous contribution period to calculate social insurance benefits. If they become disabled by at least 61%, they can receive pension benefits according to Clause 2 or Clause 3, Article 26 of the Social Insurance Charter, or if they die, their families can receive death benefits as stipulated in Section V of the Social Insurance Charter.

b/ Workers who do not wish to wait to receive monthly pension benefits can have their social insurance contribution periods and the level of wages used as the basis for contributions recorded in their social insurance books by the social insurance agency. These books are then handed over to the workers for management.

After receiving the social insurance book, if workers engage in work subject to mandatory social insurance contributions, they continue to contribute. If workers encounter risks leading to death, their families can receive death benefits. If they fall ill (confirmed by a hospital) or stop working in jobs subject to mandatory social insurance contributions for more than six months without continuing to work in such jobs and voluntarily request it, the social insurance agency where the worker resides will process a one-time social insurance allowance.

7- Clause 3, Article 28, amended and supplemented by Clause 5, Article 1, Decree No. 01/2003/NĐ-CP is as follows:

a/ Workers who cease work but have not yet reached the retirement age and have not accumulated sufficient social insurance contributions as stipulated in Articles 25 and 26 of the Social Insurance Charter shall have their social insurance contribution periods and the level of wages used as the basis for contributions recorded in their social insurance books by the social insurance agency. These books are then handed over to the workers for management.

After receiving the social insurance book, if workers engage in work subject to mandatory social insurance contributions, they continue to contribute. If workers encounter risks leading to death, their families can receive death benefits. If they fall ill (confirmed by a hospital) or stop working in jobs subject to mandatory social insurance contributions for more than six months without continuing to work in such jobs and voluntarily request it, the social insurance agency where the worker resides will process a one-time social insurance allowance.

b/ Workers whose names are on the list of enterprises, agencies, or state organizations, ceased work before January 1, 1995, and have not received a one-time allowance shall be issued a social insurance book and have their working time (up to the date of ceasing work) confirmed. The social insurance book is then handed over to the workers for management.

After receiving the social insurance book, if workers engage in work subject to mandatory social insurance contributions, they continue to contribute. If workers encounter risks leading to death, their families can receive death benefits. If they fall ill (confirmed by a hospital) or stop working in jobs subject to mandatory social insurance contributions for more than six months without continuing to work in such jobs and voluntarily request it, the social insurance agency where the worker resides will process a one-time social insurance allowance.

The method for determining working time (service time) prior to January 1, 1995, is carried out in accordance with Circular No. 13/NV dated September 4, 1972, of the Ministry of Interior (now the Ministry of Labor, Invalids, and Social Affairs) and related documents in effect before January 1, 1995.

The procedures and formalities for confirming working time and issuing social insurance books for workers as specified in paragraph b above are regulated separately.

8- The method for calculating the average monthly wage used as the basis for social insurance contributions for workers who have worked for at least 15 years in heavy, hazardous, dangerous, or extremely heavy, hazardous, dangerous jobs and then transferred to other jobs with lower salaries as stipulated in Clause 6, Article 1, Decree No. 01/2003/NĐ-CP is as follows:

a/ The applicable subjects are workers who have been assigned to salary grades in the national salary scale for heavy, hazardous, dangerous, or extremely heavy, hazardous, dangerous jobs and have made social insurance contributions based on these salaries for at least 15 years.

b/ During a period of fifteen years or more working at heavy and hazardous jobs, the five consecutive (continuous) years with the highest salary levels shall be taken as the basis for calculating the pension.

Example 12: Mr. Nguyen Van P met the retirement conditions in February 2003; he had worked and contributed to social insurance for fifteen years under the salary scale for heavy and hazardous jobs, then switched to another job with a lower salary until retirement. Mr. P's salary and social insurance contribution history was as follows:

- From January 1970 to December 1974, he worked in a heavy and hazardous job and received a mechanical salary of 331.5 dong, converted according to a factor of 2.49;

- From January 1975 to December 1980, he worked in a heavy and hazardous job and received a mechanical salary of 352.5 dong, converted according to a factor of 3.05;

- From January 1981 to December 1985, he worked in a heavy and hazardous job and received a mechanical salary of 375 dong, converted according to a factor of 3.73;

- From January 1986 to January 2003, he switched to a lighter job with a lower salary, and before retirement, he received a specialist salary of level 6, converted according to a factor of 3.06.

The salary basis for calculating Mr. P's pension is determined according to Clause 6, Article 1 of Decree No. 01/2003/NĐ-CP as follows: calculate the average monthly salary contributions to social insurance over the five consecutive highest years (January 1981 to December 1985) which is 3.73.

Example 13: Mr. Nguyen Van Q, a truck driver, met the retirement conditions in January 2003, having worked and contributed to social insurance for fifteen years under the salary scale for heavy and hazardous jobs, but his salary varied at different times:

- From January 1975 to December 1977, he drove a 16.5-ton truck and received a level 2 salary of 372 dong, converted according to a factor of 2.56;

- From January 1978 to December 1980, he drove a 40-ton truck and received a level 2 salary of 438 dong, converted according to a factor of 3.27;

- From January 1981 to December 1983, he drove a 25-ton truck and received a level 2 salary of 394 dong, converted according to a factor of 2.98;

- From January 1984 to December 1986, he drove a 14-ton truck and received a level 3 salary of 372 dong, converted according to a factor of 3.07;

- From January 1987 to December 1989, he drove a 30-ton truck and received a level 3 salary of 438 dong, converted according to a factor of 3.73;

- From January 1990 until retirement, he switched to driving a small car with a lower salary, converted according to a factor of 2.73.

The calculation method for the average monthly salary to serve as the basis for calculating the monthly pension of Mr. Q is as follows:

Mr. Q has two periods with the highest salaries of 3.27 and 3.73, but they are not continuous, so the amounts of these two periods cannot be combined to calculate the average salary of the highest consecutive five-year period.

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

- From January 1985 to December 1986, the salary is calculated according to a factor of 3.07.

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

The calculation of pensions for the subjects specified in points a and b above does not apply to workers receiving salaries that do not belong to the salary scales prescribed by the State.

c/ The list of heavy, hazardous, dangerous, and particularly heavy, hazardous, and dangerous occupations and jobs is issued by the Ministry of Labor, Invalids, and Social Affairs, implemented according to the following documents:

- Decision No. 1453/LDTBXH-QĐ dated October 13, 1995 of the Minister of Labor, Invalids, and Social Affairs;

- Decision No. 915/LDTBXH-QĐ dated July 30, 1996 of the Minister of Labor, Invalids, and Social Affairs;

- Decision No. 1629/LDTBXH-QĐ dated December 26, 1996 of the Minister of Labor, Invalids, and Social Affairs;

- Decision No. 190/1999/QĐ-BLĐTBXH dated March 3, 1999 of the Minister of Labor, Invalids, and Social Affairs;

- Decision No. 1580/2000/QĐ-BLĐTBXH dated December 26, 2000 of the Minister of Labor, Invalids, and Social Affairs.

9- The method of calculating the time of social insurance contributions for resolving benefits is stipulated in Clause 7, Article 1 of Decree No. 01/2003/NĐ-CP as follows:

a/ The method of calculating the time of social insurance contributions for calculating the pension and social insurance allowance: if there is less than three months of social insurance contributions, it will not be counted; from three months to six months, it will be counted as half (1/2) year (six months); from seven months to twelve months, it will be counted as a full year.

b/ When determining the time of social insurance contributions for calculating the retirement and survivorship benefits, one year must be counted as twelve months. If the time of social insurance contributions is still lacking up to a maximum of six months, the worker must contribute once for the remaining months at a monthly rate equal to 15% of their monthly salary before retirement.

Example 14: Ms. Le Thi T, when retiring at age 55, had a total of 14 years and 7 months of social insurance contributions. Therefore, Ms. T needs to self-contribute for the additional 5 months to meet the requirement of 15 years of social insurance contributions as stipulated in Clause 1, Article 26 of the Social Insurance Regulations.

c/ The method of calculating the pension and social insurance allowance when the time of social insurance contributions is six months short:

- When calculating the percentage of the pension, if there are six months left, it will be calculated as half (1/2) of the benefit of one year of social insurance contributions.

- When calculating the lump-sum social insurance allowance, if there are six months left, it will be calculated as half (1/2) of the benefit of one year of social insurance contributions.

Example 15: Ms. Nguyen Thi Q, aged 55, had a total of 23 years and 4 months of social insurance contributions. Her social insurance contributions are rounded up to 23 years and 6 months. The monthly pension of Ms. Q is calculated as follows:

- The first 15 years are calculated at 45%

- From the 16th to the 23rd year, which is eight years, she receives an additional 24%.

- Six months short are calculated as: 1/2 x 3% = 1.5%

The ratio for calculating the monthly pension is: 45% + 24% + 1.5% = 70.5% of the average monthly salary used as the basis for social insurance contributions..

Example 16: Mr. Nguyen Van S, aged 60, had a total of 32 years and 4 months of social insurance contributions. His social insurance contributions are rounded up to 32 years and 6 months. The monthly pension of Mr. S is calculated as follows:

- The first 15 years are calculated at 45%

- From the 16th to the 30th year (15 years) is calculated as an additional 30%.

The ratio for calculating the monthly pension is: 45% + 30% = 75% of the average monthly salary used as the basis for social insurance contributions.

In addition, Mr. S is also entitled to a one-time allowance for a period of two years six months (the period of social insurance contributions exceeding thirty years), which is:

Two years multiplied by half a month's salary equals one month's salary.

Six months are calculated at half the rate of the one-year allowance, which is a quarter of a month's salary (half of half a month's salary). Therefore, the one-time allowance is:

One month's salary plus a quarter of a month's salary equals one and a quarter months' salary.

10- During the maternity leave period stipulated in Clause 9, Article 1 of Decree No. 01/2003/NĐ-CP, employees do not contribute 5% of their monthly salary, and employers do not contribute 15% of the monthly salary for the employee during the leave period as follows:

a/ For female employees who take maternity leave for four, five, or six months, and additional leave due to multiple births as provided for in Clauses 1 and 2 of Article 12 of the Social Insurance Regulations.

b/ The time when employees take leave to care for newborn adopted children as provided for in Article 13 of the Social Insurance Regulations.

The above provisions do not apply to additional leave periods specified in Clause 3 of Article 12 of the Social Insurance Regulations.

III- Implementation Provisions

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

The provisions set forth in this Circular shall be applicable as of January 1, 2003. No retroactive benefits will be granted to individuals who have already received social insurance benefits prior to January 1, 2003.

2- The procedures and documentation for processing social insurance benefits shall be carried out in accordance with Circular No. 06/LĐ-TBXH-TT dated April 4, 1995, issued by the Ministry of Labor, War Invalids and Social Affairs, and other current guiding documents.

3- This Circular abolishes:

a/ The following contents of Circular No. 06/LĐ-TBXH-TT dated April 4, 1995, issued by the Ministry of Labor, War Invalids and Social Affairs, guiding the implementation of certain provisions to enforce the Social Insurance Regulations promulgated together with Decree No. 12/CP dated January 26, 1995 of the Government:

- Part A;

- Point 1, Section II, Part B;

- Sub-points a and b, Point 3, Section IV, Part B;

- Point 4, Section IV, Part B;

- Point 5, Section IV, Part B;

- Point 5, Part D.

b/ Circular No. 02/1999/TT-BLĐTBXH dated January 9, 1999, issued by the Ministry of Labor, War Invalids and Social Affairs, guiding the implementation of Decree No. 93/1998/NĐ-CP dated November 12, 1998 of the Government on amending and supplementing certain provisions of the Social Insurance Regulations promulgated together with Decree No. 12/CP dated January 26, 1995 of the Government.

Any difficulties encountered during implementation should be reported to the Ministry of Labor, War Invalids and Social Affairs for consideration and resolution.