Joint Circular No. 1/2000/TTLT/BLDTBXH-BTC guides the implementation of adjustments to pension levels and social insurance benefits according to Government Decree No. 175/1999/NĐ-CP dated December 15, 1999.

JOINT CIRCULAR

Guidelines for adjusting pension levels and social insurance benefits in accordance with

Decree No. 175/1999/NĐ-CP dated December 15, 1999 of the Government.

Implementing Decree No. 175/1999/NĐ-CP dated December 15, 1999 of the Government on adjusting the minimum wage level, benefit levels, and living expenses for those receiving pensions, allowances, and living expenses from the State budget, after reaching consensus with the Central Organization Committee, the Government Civil Service Management Board, and the Joint Ministry of Labor, War Invalids and Social Affairs-Finance, guidelines for adjusting pension levels and social insurance benefits are as follows:

- Enterprises operating within the Tan Thuan Export Processing Zone (hereinafter referred to as export processing zone enterprises) that are conducting pilot expansions of their business functions.

The subjects eligible for adjustment of pension levels and social insurance benefits as stipulated in Clause 3, Article 1 of Decree No. 175/1999/NĐ-CP dated December 15, 1999 of the Government include: persons receiving pensions (including civil servant and employee pensions, military pensions, public security personnel pensions); disability benefits; rubber worker allowances; sick leave benefits; maternity benefits; occupational injury and occupational disease benefits; survivor benefits; village and ward cadres who have retired and are receiving benefits under Decree No. 09/1998/NĐ-CP dated January 23, 1998 of the Government.

II. Method for recalculating pension levels and social insurance benefits.

The subjects mentioned above in Section I shall have their pension levels and social insurance benefits recalculated as follows:

1. Persons currently receiving pensions; disability benefits; occupational injury and occupational disease benefits; rubber worker allowances; monthly survivor benefits; benefits for village and ward cadres as stipulated in Clause a, Article 4 of Decree No. 09/1998/NĐ-CP dated January 23, 1998 of the Government before January 1, 2000 shall have their pension levels or benefit levels recalculated as follows:

2. Persons who start receiving pensions or social insurance benefits from January 1, 2000 onwards shall enjoy benefits calculated as follows:

a. Retirees with social insurance contributions based on state-regulated salary scales shall have their pension levels calculated based on adjusted salary levels according to the minimum wage of 180,000 VND/month as stipulated in Decree No. 175/1999/NĐ-CP dated December 15, 1999.

Example:

A cadre retiring in February 2000 had the following salary contribution history for the last five years before retirement:

From February 1995 to January 1998, the salary coefficient was 3.35

From February 1998 to January 2000, the salary coefficient was 3.63.

The method for calculating the average salary for social insurance contributions to serve as the basis for calculating the pension is as follows:

From February 1995 to January 1998, the total salary amount calculated based on the coefficient:

3.35 x 180,000 VND x 36 months = 21,708,000 VND

From February 1998 to January 2000, the total salary amount calculated based on the coefficient:

3.63 x 180,000 VND x 24 = 15,681,600 VND.

The total salary amount for social insurance contributions for the last five years before retirement is:

21,708,000 VND + 15,681,600 VND = 37,389,600 VND

The average salary for social insurance contributions to serve as the basis for calculating the pension is:

37,389,600 VND ÷ 60 months = 623,160 VND

b) For retirees who have contributed to social insurance both under state-regulated salary scales and under non-state-regulated salary scales, the calculation of the average salary for the last five years in the state sector will be based on the minimum wage of 180,000 VND/month for the period of contributions under the state-regulated salary scales.

c) For village and ward cadres who have retired and are receiving benefits as stipulated in Article 24 of Decree No. 09/1998/NĐ-CP dated January 23, 1998 of the Government, the benefit level will be calculated based on the adjusted living allowance as specified in Circular No. 54/1999/TTLB-BTCCCP-BTC dated December 29, 1999 of the Joint Office of the Government Civil Service Management Board - Ministry of Finance.

d) For persons receiving sickness, maternity, occupational injury, occupational disease, survivor, or one-time social insurance benefits, the benefit level will be calculated based on the salary or living allowance calculated according to the minimum wage of 180,000 VND.

Specifically, for individuals who suffered occupational injuries or occupational diseases before January 1, 2000, or who retired and received one-time benefits, sickness benefits, maternity benefits, or died before January 1, 2000 but still have entitlement periods remaining, the benefits will be calculated as follows:

For individuals who were treated and discharged from hospital before January 1, 2000 due to occupational injuries or occupational diseases, the one-time benefit will be paid at the December 1999 benefit level. In cases where treatment began before January 1, 2000 and discharge occurred after January 1, 2000, the benefits will be paid at the recalculated level based on the minimum wage of 180,000 VND/month.

For individuals who retired and received sickness or maternity benefits before January 1, 2000 but still have entitlement periods remaining after 2000, the benefit level for periods of absence starting from January 1, 2000 will be calculated based on the minimum wage of 180,000 VND/month.

For individuals who died before January 1, 2000 but whose funeral expenses and one-time benefits have not yet been paid, these will still be paid at the December 1999 benefit level.

For individuals who retired and received one-time social insurance benefits before January 2000 but whose decision to receive such benefits was made by the social insurance agency after January 2000, the benefits will be calculated based on the minimum wage of 180,000 VND/month.

e) For retirees or those who have stopped working due to disability and are military personnel or public security personnel entitled to additional benefits as stipulated in Decision No. 812/TTg dated December 12, 1995, from January 1, 2000, the additional benefit will be calculated based on the minimum wage of 180,000 VND/month.

f) For retirees living alone and entitled to a benefit of 180,000 VND/month as stipulated in Decision No. 812/TTg dated December 12, 1995 of the Prime Minister, from January 1, 2000, this benefit will be adjusted to 270,000 VND/month.

g) Any regional allowance (if applicable) for retirees and social insurance beneficiaries will be calculated based on the minimum wage of 180,000 VND/month from January 1, 2000.

III. Implementation Organization.

1. The Ministry of Labor, War Invalids and Social Affairs shall coordinate with the Ministry of Finance to provide guidance, monitor, and resolve any issues encountered by ministries, sectors, localities, and grassroots units during the implementation of this Circular.

2. The Ministry of Finance shall review and allocate the pension fund and additional allowances for beneficiaries receiving social insurance from the State budget.

3. The Vietnam Social Security shall direct units to implement and prepare reports as follows:

a) Prepare a report on the number of beneficiaries and the pension fund, additional social insurance allowances for those to be paid from the State budget, and submit it to the Ministry of Finance for review, while also sending it to the Ministry of Labor, Invalids, and Social Affairs by February 2000.

b) Implement adjustments and payments for the additional increases for beneficiaries receiving pensions and social insurance allowances, including those paid from the State budget and those paid from the social insurance fund. Collect social insurance contributions based on the adjusted minimum wage as stipulated in Decree No. 175/1999/NĐ-CP dated December 15, 1999 issued by the Government.

4. Ministries, central agencies, People's Committees of provinces and centrally-administered cities shall direct their agencies, units, Departments of Labor, Invalids, and Social Affairs, and Departments of Finance and Prices to inspect and urge the implementation of the provisions of this circular.

5. This circular shall take effect from January 1, 2000.

Any difficulties encountered during implementation should be reported to the Joint Ministry for study and resolution./.