Joint Circular No. 08-LB/TT guiding the implementation of the allowance system for officials, workers, and employees who cease work due to old age, weakness, or loss of labor capacity.

JOINT CIRCULAR

Guidelines for Implementing the Subsidy System for Cadres, Workers, and Civil Servants Who Cease Work Due to Old Age, Weakness, or Loss of Labor Capacity

On January 7, 1960, the Prime Minister issued Circular No. 13-TTg stipulating the subsidy system for cadres, employees, and civil servants who cease work due to old age, weakness, or loss of labor capacity. Now, the Joint Ministry explains some specific points and provides guidance on implementation as follows:

The allowance system for judicial experts or specialized staff assigned to perform judicial expertise aims to compensate for part of the health expenses incurred to ensure the completion of assigned tasks.

Currently, there are some cadres, workers, and civil servants in agencies, enterprises, and factories who are old, sick, chronically ill, or have lost their labor capacity, and are no longer capable of working. If they continue to be retained in the payroll, it will not ensure work efficiency or production. The Prime Minister's stipulated subsidy system aims to assist these brothers and sisters when they cease work, ensuring they can maintain their livelihood. This regulation is based on actual circumstances, aligns with work and production requirements, meets the wishes of the brothers and sisters, and fits within the state's financial capabilities, while also demonstrating the Party and Government's concern for the lives of cadres, workers, and civil servants.

II. GUIDELINES FOR RESOLUTION

In accordance with the spirit of the Prime Minister's circular, this issue has a significant impact on the thoughts and lives of cadres, workers, and civil servants. If not handled properly, it may cause negative social and political impacts. Therefore, before implementation, agencies and enterprises must thoroughly understand the policy, consider multiple aspects to ensure the correct implementation of the Party and Government's cadre policies.

- First, efforts should be made to arrange and utilize brothers and sisters in light tasks that match their remaining abilities, and they should enjoy wages according to the new job from the date of transfer. If they are unable to continue working due to loss of labor capacity and cannot be arranged for any other work, they should be allowed to cease work.

For cadres, workers, and civil servants who participated in the resistance war or long-term revolutionary activities and were affected by illness or loss of labor capacity due to harsh working conditions in the past, more caution is required. The main focus should be on arranging them in suitable jobs; only in exceptional cases where they cannot work anymore should they be allowed to cease work. When allowing them to cease work, at central agencies, decisions should be made by Ministers or Deputy Ministers, and at local levels, opinions from administrative committees at provincial level or higher are required, and if they are responsible cadres (from Department Heads and Deputy Heads upwards), opinions from relevant ministries are necessary.

It is important to avoid the tendency of hastily resolving matters to lighten the payroll, leading to mass cessation of work, but also to guard against the fear of explaining and addressing issues, worrying about the difficulties faced by brothers and sisters once they leave, which could result in excessive caution and reluctance to allow anyone to leave, affecting production and work.

Before allowing brothers and sisters to leave, agencies and enterprises need to thoroughly address their thoughts, investigate and understand the family circumstances of each individual, to coordinate with local authorities and organizations to provide assistance, ensuring they are truly at ease when leaving.

III. CONDITIONS FOR ENJOYING THE SYSTEM

Those eligible for this system are cadres, workers, and civil servants in agencies, enterprises, public, agricultural, forestry, and fishery farms (both administrative and production sectors), including civilian and party organizations, who have been in the payroll for three consecutive years or more and now suffer from loss of labor capacity due to old age, chronic illness, or disability, certified by the Medical Appraisal Board as no longer able to continue working. Specifically, for cadres, workers, and civil servants who became disabled due to previous workplace accidents (already classified under Decree No. 111-LB dated November 11, 1955) and are now disabled and unable to work, certified by the Medical Appraisal Board, even if they have not worked for three years, they are still eligible for this system.

Those who are currently undergoing treatment in hospitals, clinics, or outpatient care at their agencies should continue their treatment; upon completion of treatment, they will be handled according to the aforementioned guidelines.

As for those who have not been in the payroll for three years and cease work due to loss of labor capacity (not due to workplace accidents), they will still apply the provisions of Decree No. 594-TTg. Those whose work capability is insufficient, unable to perform tasks, or whose work attitude does not meet standards do not fall within the scope of this system.

IV. SUBSIDIES

1. Personal Subsidy:

a) Cadres, workers, and civil servants (including temporary workers) who have been assigned to common salary scales shall receive a personal subsidy of 30% of their grade salary (excluding additional allowances); for each additional year beyond four years of service, they will receive an additional 1% of their grade salary.

b) Temporary workers who have not yet been assigned to common salary scales and still receive their full salary shall receive a personal subsidy of 30% of their basic salary (excluding additional allowances) and for each additional year of work for the Democratic Republic of Vietnam beyond four years, they will receive an additional 1% of their basic salary, but the maximum subsidy shall not exceed 85 dong.

The monthly subsidy amount for both types (a and b) mentioned above, if lower than the amounts specified below, shall be increased to meet the minimum:

- 12 dong for those returning to rural areas.

- 15 dong for those returning to cities.

Here, "city" refers to Hanoi and Haiphong (including suburbs), while towns and townships are considered rural areas.

Those receiving subsidies at the minimum rates mentioned above, if they change their place of residence (moving from rural to urban areas or vice versa), will receive subsidies according to the rates applicable to their new location, starting from the month of relocation.

A mechanical worker at grade 5 of scale 8, working from September 2, 1945 to September 2, 1960 (15 years of service), ceasing work due to loss of labor capacity, will receive a monthly subsidy:

Example:

1. - For the first three years, starting at:

2. An administrative cadre at grade 4 of scale 21, working from January 1, 1955 to January 1, 1960 (five years of service), ceasing work due to loss of labor capacity, will receive a monthly subsidy:

- For two years, adding 1% each year:

- 32 percent of rank salary 4/21 is:

The amount of 11đ52 is below the minimum level and should be increased to 15đ if the person returns to live in a city after leaving work, or to 12đ if they return to live in a rural area.

3. A retained official who has not yet been assigned to the general salary scale, still receiving the original salary plus all family allowances, position allowances, hardship allowances, regional allowances, housing allowances, electricity and water allowances, etc., as previously stipulated by the former authority, equivalent to 450đ of our bank money, of which the basic salary (according to the old French rank) is equivalent to 150đ of our bank money, with a service period of 5 years from the time of retention until retirement due to loss of working capacity, shall receive monthly assistance as follows:

- 32% of the basic salary is:

4. Another retained official with the original salary, the basic salary and other allowances as mentioned above, equivalent to 750đ of our bank money, of which the basic salary (according to the old French rank) is 300đ, with a service period of 5 years from the time of retention until retirement due to loss of working capacity, shall receive monthly assistance as follows:

- 32% of the basic salary is:

- The amount of 96đ exceeds the maximum level of 85đ and therefore can only be received at 85đ.

c. Cadres, workers, and officials who were injured at work before (already classified as disabled according to Joint Decree No. 111-LB dated November 11, 1955) and now have become disabled and unable to work, in addition to the aforementioned assistance levels, depending on the degree of disability, will also receive additional benefits ranging from 5% to 10% of their rank salary (or basic salary for retained officials still receiving the original salary) as follows:

- For special category disabilities and Category 1 disabilities, an additional 10% of the rank salary (or basic salary) is provided.

- For Category 2 disabilities, an additional 9% of the rank salary (or basic salary) is provided.

- For Category 3 disabilities, an additional 7% of the rank salary (or basic salary) is provided.

- For Category 4 disabilities, an additional 6% of the rank salary (or basic salary) is provided.

- For Category 5 disabilities, an additional 5% of the rank salary (or basic salary) is provided.

Workers and officials who were injured at work under the previous regime and those injured in war (not covered by Joint Decree No. 111-LB) and now have become disabled and unable to work, will not receive the additional preferential rate of 5% to 10% mentioned above.

d. Cadres, workers, and officials who are war invalids, while working continue to receive disability allowances for war invalids, if they now retire due to loss of working capacity, in addition to the allowances stated in this circular, they will continue to receive disability allowances for war invalids.

2. Child Allowance:

- Cadres, workers, and officials currently receiving child allowances, after retiring, will continue to receive allowances according to the current system (at the time of retirement) and will also receive them every three months together with personal allowances. This allowance aims to help brothers and sisters solve part of the difficulties for the family, so it will remain fixed throughout the period of receiving allowances.

Example: An official receiving a monthly disability allowance of 25đ, while working had two children each receiving a monthly allowance of 5đ: 5đ x 2 = 10đ. Therefore, starting from the day of retirement and for the next two years, every three months, this person will receive: 25đ + 10đ = 35đ x 3 months = 105đ.

- In cases where both husband and wife are working within the establishment (both within the scope of receiving child allowances), if one person retires due to loss of working capacity, and if that person was previously receiving child allowances, then after retirement, they will no longer receive child allowances, but instead, the person still working within the establishment will receive them. This person will declare to their agency or enterprise to receive child allowances from their own unit.

- In cases where both husband and wife are working, but one person is not yet within the establishment (not within the scope of receiving child allowances), if the person within the establishment retires due to loss of working capacity, and if they were previously receiving child allowances, then after retirement, they will continue to receive as in the example above; however, afterwards, if the person remaining in work enters the establishment, then this person will declare to their unit to receive child allowances. After providing child allowances to the newly entered establishment personnel, the unit will report to the local administrative committee responsible for issuing allowances to the retired person to stop issuing this child allowance.

Retained workers and officials still receiving the original salary when working do not have separate allowances for children, so after retiring due to loss of working capacity, they will not receive this allowance either.

3. Allowance upon initial retirement.

In addition to the allowances mentioned above received every three months, each cadre, worker, and official will also receive a lump sum allowance upon initial retirement, specifically as follows:

- Cadres, workers, and officials with a service period of 3 to 5 years will receive a 100đ allowance.

- Cadres, workers, and officials with a service period of over 5 years up to less than 10 years will receive a 150đ allowance.

- Cadres, workers, and officials with a service period of 10 years or more will receive a 200đ allowance.

If entering a rest home, each person will only receive a unified allowance of 50đ.

This amount is intended to assist brothers and sisters when they first return, to purchase necessary items for themselves, or to provide additional support for their families.

Additionally, they will also receive travel expenses, food expenses during the journey back to their place of residence for themselves and their families, and all other benefits already stipulated in Section II of Decree 594-TTg.

4. Conditions for Admission to a Rest Home:

- After retirement, those with families will reside in their family homes, while those without families or support will be arranged by the agency, enterprise, in coordination with local authorities and organizations, by mobilizing relatives and neighbors in the village where the cadre, worker, or official will reside, to provide accommodation and living arrangements.

- In cases where the locality cannot resolve the issue, and the cadre, worker, or official meets the conditions for admission to a rest home, they may temporarily be admitted to a Southern rest home.

- The conditions for admission to a rest home according to the current regulations of the rest home are summarized as follows:

a) Cadres, workers, and officials within the establishment, male aged 60 or older, female aged 55 or older, elderly, no longer capable of working and without support,if below the specified age, must have chronic illness or disability resulting in loss of working capacity of 60% or more.

b) Not suffering from acute diseases or infectious sequelae.

c) Certified by the Medical Appraisal Board.

Upon entering the camp, they shall enjoy the camp's benefits funded by the camp's budget. Specifically, if the monthly personal allowance is lower than the camp's allowance, the cadre, worker, or civil servant shall receive the allowance according to the camp's standard; conversely, if the monthly allowance is higher, the person shall still receive the monthly allowance as stipulated in this circular.

5. Benefits when sick or deceased.

- After returning home and during the entire period of receiving allowances.

a) If sick, cadres, workers, and civil servants who have ceased employment may visit hospitals in their place of residence for medical examination and treatment, and receive medication and supplementary care based on their illness, as determined by the hospital. If the local hospital cannot treat the condition, the patient will be referred to other hospitals as prescribed by the health authority.

- The cost of meals during hospitalization must be paid by the cadre, worker, or civil servant; however, if the meal cost exceeds the monthly allowance (for those receiving the minimum allowance), they only need to pay according to the monthly allowance. In cases of financial hardship certified by the People's Committee of the commune or ward, the hospital may consider reducing or waiving the meal costs.

- The expenses for medications, supplementary care, and meals (the additional portion provided by the hospital) mentioned above shall be settled by the hospital with the local social relief fund where the cadre, worker, or civil servant resides.

- Those suffering from tuberculosis or leprosy, who are entitled to medication under Circular No. 750 dated July 28, 1958, issued by the Ministry of Health, shall continue to receive such entitlements.

b) If a cadre, worker, or civil servant dies they shall also receive funeral expenses according to the current regulations for cadres, workers, and civil servants. There are no other provisions.

V. PERIOD OF ALLOWANCE BENEFITS

The period of receiving allowances herein is two years, calculated from the date of ceasing employment. After this period:

- If the cadre, worker, or civil servant regains health, they may depending on their health status and the state's recruitment needs, be re-employed and assigned work commensurate with their capabilities, or be provided with alternative employment and receive wages according to the new job, and cease receiving this allowance. If recovery occurs before the two-year period ends, the same measures apply.

- If health does not permit work, and if eligible, they shall receive social insurance benefits established for the elderly, weak, or those unable to work.

VI. EFFECTIVE DATE OF IMPLEMENTATION

This regulation takes effect from January 1, 1960; cadres, workers, and civil servants who were unable to work and ceased employment prior to that date and received allowances under previous regulations do not fall within the scope of this circular. If these individuals face difficulties, local People's Committees will develop plans to assist them based on specific circumstances and local capacity.

Cadres, workers, and civil servants who ceased employment after January 1, 1960, and whose units had previously provided allowances under Decree No. 594-TTg, if eligible for this circular, should recalculate to ensure compliance.

Example:

A worker who was allowed to cease employment due to inability to work on January 2, 1960, and received allowances under Decree No. 594-TTg totaling 500 dong. Now, the enterprise determines that the individual meets the criteria for this benefit, calculating a monthly allowance of 25 dong, and an initial allowance of 100 dong upon return. Thus, it is considered that the enterprise has already provided the initial allowance (100 dong) and 16 months of monthly allowances (up to April 1961). The enterprise will complete all necessary procedures and notify the provincial (city, district) People's Committee where the individual resides so that the allowance can continue from May 1961 until the end of the two-year period.

VII. CALCULATION OF SENIORITY

The method of calculating seniority to receive allowances remains in accordance with Joint Circulars of the Ministry of Interior - Labor and Finance Nos. 3 dated January 14, 1958, and No. 63 dated September 9, 1958, guiding the implementation of Decree No. 594-TTg; however, to align with this circular, the joint ministry should clarify the following points:

a) Those eligible for this benefit are cadres, workers, and civil servants who have been in the payroll for at least three consecutive years. Any periods of interrupted service prior to the three consecutive years may be included in the seniority calculation. Partial years less than six months are not counted, while six months or more are counted as one year, adding 1% for each year of seniority.

Example:

A cadre who entered the payroll from January 15, 1957, to January 15, 1960, and ceased employment due to inability to work, having previously worked in the payroll from September 1, 1946, to June 1, 1953, without receiving severance pay. Therefore, the total seniority of this person is 9 years and 9 months, rounded up to 10 years:

- Monthly, the person will receive an allowance equal to 37% of the salary grade and an initial allowance of 20 dong.

However, if severance pay was received upon previous cessation of employment (June 1953), then the earlier period (1946-1953) is not counted towards seniority, and only the period from 1957 to cessation (1960) is considered, along with the initial severance pay (200 dong).

b) Those previously classified as temporary or short-term employees who have not been in the payroll for at least three years are not eligible for this benefit.

c) Those who have been in the payroll for at least three years due to illness and required hospitalization, even if the actual working time is less than three years, are still eligible for this benefit.

VIII. PROCEDURES FOR ISSUING PAYMENTS

- Before a cadre, worker, or civil servant leaves the unit, the unit is responsible for providing all necessary documents, settling all aforementioned benefits, immediately issuing the allowance for the current quarter, and introducing the individual to the provincial (city or district) People's Committee where the cadre, worker, or civil servant resides, for the committee to continue issuing the allowance quarterly in the first month of each quarter. If employment ceases in the last month of a quarter, the unit shall settle the allowance for the next quarter immediately.

Example:

An official working at the Hanoi Administrative Committee, due to loss of labor capacity, was relieved of duty on January 15, 1960, and received salary until the date of relief. If upon relief, they reside in Ha Nam, the Hanoi Administrative Committee will immediately provide subsistence allowance from January 16, 1960, to March 31, 1960, and issue an introduction letter to the Ha Nam Provincial Administrative Committee so that starting April 1, 1960, the Ha Nam Provincial Administrative Committee will continue to provide subsistence allowance for 24 months, with any remaining days settled in the final quarter.

However, if the person is relieved of duty in March 1960, the Hanoi Administrative Committee will provide the full subsistence allowance for the second quarter (April, May, June, totaling four months) and introduce them to the Ha Nam Provincial Administrative Committee so that starting the third quarter, the Ha Nam Provincial Administrative Committee will continue to provide subsistence allowance.

Upon receiving the introduction letter from the agency or enterprise regarding the official, worker, or staff member who has been relieved of duty and resides in their locality, the provincial (city, zone) administrative committee will record their name in the list of persons entitled to subsistence allowance in their locality for continued distribution, and will issue a subsistence allowance collection book (unified model attached), printed and sent by the Ministry of Labor, to the person entitled to subsistence allowance.

When collecting money, the person entitled to subsistence allowance must bring necessary documents such as the decision to relieve them of duty from the previous agency or enterprise, identification card or travel permit, and the aforementioned subsistence allowance collection book. In case of illness preventing them from collecting, they may write a power of attorney for a family member to collect on their behalf, certified by the administrative committee of the commune or ward. To reduce the difficulty and expense of traveling for the person entitled to subsistence allowance, depending on local conditions, the provincial or zone administrative committee may transfer funds to the county or district administrative committees for distribution.

The person entitled to subsistence allowance residing in a locality is under the management of that locality's administrative committee and receives subsistence allowance from it. Each time there is a change in residence, the person entitled to subsistence allowance must report to the provincial (city or zone) administrative committee of their former place of residence to be introduced to the new provincial (city or zone) administrative committee to continue receiving subsistence allowance.

During the period of entitlement to subsistence allowance, if the person entitled to subsistence allowance dies, the provincial (city or zone) administrative committee currently providing the subsistence allowance will provide funeral expenses.

These allowances are covered by the local social welfare fund (benefit for officials). The provincial (city or zone) administrative committees will prepare budgets and be responsible for distribution. The Ministry of Labor has the responsibility to oversee generally. The provincial, city, and zone administrative committees will report to the Ministry of Labor on the number of people relieved of duty due to loss of labor capacity residing in their locality, the general situation of those entitled to subsistence allowance, as well as difficulties encountered during policy implementation to contribute suggestions for resolution.

As mentioned above, this matter is closely related to the ideology and life of officials, workers, and staff members. The Joint Ministries request that all ministries, agencies, and central organizations, as well as local administrative committees, need to have strict plans for leadership and implementation, reminding all units to grasp the spirit of the policy for thorough execution.

During implementation, if any issues arise, the relevant ministries, sectors, and localities should reflect them to the Joint Ministries for supplementation of the policy or additional explanation.