Circular No. 134/2011/TT-BTC detailing and guiding the implementation of certain provisions of Decision No. 04/2011/QĐ-TTg dated January 20, 2011 of the Government on financial management for the Vietnam Social Security.

CIRCULAR

Detailed regulations and guidance on implementing certain provisions of Decision No. 04/2011/QĐ-TTg dated January 20, 2011 of the Prime Minister regarding financial management for Vietnam Social Security

concerning financial management for Vietnam Social Security

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 04/2011/QĐ-TTg dated January 20, 2011 of the Prime Minister on financial management for Vietnam Social Security;

Implementing the instructions of the Prime Minister in Circular No. 5376/VPCP-KTTH dated August 5, 2011 of the Government Office on the financial mechanism for social insurance under the Ministry of National Defense, the Ministry of Public Security, and the State Cryptography Committee,

The Ministry of Finance hereby issues detailed regulations and guidance on implementing certain provisions of Decision No. 04/2011/QĐ-TTg dated January 20, 2011 of the Prime Minister on financial management for Vietnam Social Security (hereinafter referred to as Decision No. 04/2011/QĐ-TTg) as follows:

Section I
GENERAL PROVISIONS

Article 1. Scope of application

This Circular applies to units under Vietnam Social Security, social insurance under the Ministry of National Defense, the Ministry of Public Security, the State Cryptography Committee, units assigned to perform unemployment insurance tasks under the Ministry of Labor, Invalids and Social Affairs (hereinafter referred to as the labor sector), and agencies, organizations, and individuals related to financial management for Vietnam Social Security.

Article 2. Opening and using accounts for administrative expenses

Units under Vietnam Social Security; social insurance under the Ministry of National Defense, the Ministry of Public Security, the State Cryptography Committee, and units under the labor sector shall open deposit accounts at the State Treasury or state commercial banks to reflect revenues and expenditures of social security, unemployment insurance, and health insurance activities as stipulated herein. The balance on the deposit account shall earn interest rates as prescribed by the State Treasury and state commercial banks.

Article 3. Transfer of administrative expenses, management, utilization, and settlement of administrative expenses

1. Vietnam Social Security shall transfer funds into the deposit accounts of units based on the approved budget for administrative expenses according to the following principles:

a) For social insurance under the Ministry of National Defense, the Ministry of Public Security, the State Cryptography Committee, and the Ministry of Labor, Invalids and Social Affairs: once every quarter before the 10th day of the first month of each quarter, with the amount transferred each time equal to the average quarterly amount of the approved budget. In case the authorized authority has not allocated the budget by January 10, Vietnam Social Security shall provide a temporary advance amount equivalent to the average monthly amount of the regular budget (including special regular expenses) allocated in the previous year; this amount will be deducted from the annual allocation according to the approved budget.

b) For units under Vietnam Social Security: fund transfers shall be made monthly as prescribed by Vietnam Social Security.

2. Funds allocated for tasks within the year but unused by the end of the year shall be carried over to the next year for continued use as prescribed; they shall not be considered savings for increased income or the establishment of reserves.

3. Units under Vietnam Social Security; social insurance under the Ministry of National Defense, the Ministry of Public Security, the State Cryptography Committee, and units under the labor sector shall manage, utilize, and settle administrative expenses with Vietnam Social Security in accordance with the legal provisions on accounting and statistics, and in detail according to the items and sub-items of the current State Budget Classification.

Article 4. Management, use, and allocation of fees for payment of pensions, social insurance benefits, and unemployment allowances

1. For the fees for payment of pensions and social insurance benefits for beneficiaries guaranteed by the state budget:

a) The fee level for payment shall be 0.78% of the total amount paid for pension and social insurance benefit schemes as prescribed (excluding the amount paid for health insurance contributions).

b) Monthly, the Ministry of Finance shall allocate the payment fees to the Vietnam Social Security together with the funding for pension and social insurance benefit payments as stipulated in Clause 3, Article 5 of this Circular.

2. For the fees for payment of pensions, social insurance benefits, and unemployment allowances for beneficiaries guaranteed by the mandatory social insurance fund, voluntary social insurance fund, and unemployment insurance fund, they shall be allocated within the budget for management expenses of the Vietnam Social Security as follows:

a) The fee for payment of pensions and social insurance benefits for beneficiaries guaranteed by the mandatory social insurance fund shall be 0.78% of the total amount paid for pensions and social insurance benefits from the component funds: occupational accidents, occupational diseases, old-age pensions, and survivors' benefits (excluding the amount paid for health insurance contributions).

b) The fee for payment of pensions and social insurance benefits for beneficiaries guaranteed by the voluntary social insurance fund shall be 0.78% of the total amount paid for voluntary social insurance benefit schemes (excluding the amount paid for health insurance contributions).

c) The fee for payment of unemployment allowances shall be 0.78% of the total amount paid for unemployment benefit schemes for those currently receiving unemployment benefits as prescribed.

3. The Vietnam Social Security shall base on the payment fees allocated by the Ministry of Finance and the fees allocated within the management budget assigned, publicly allocate to units in accordance with the specific characteristics of each locality and provide related units with management costs for use in payment, specifically:

a) For units under the Vietnam Social Security implementing the provisions at point h, Clause 2, Article 9 of this Circular.

b) For the Social Security under the Ministry of National Defense, Ministry of Public Security, and Government Cryptographic Office, implement according to the provisions at point e, Clause 1, Article 12 of this Circular.

PART II
FINANCIAL MANAGEMENT FOR THE VIETNAM SOCIAL SECURITY

Article 5. Establishment and Allocation of Financial Plans According to Article 4 of Decision No. 04/2011/QĐ-TTg

1. The annual financial plan of the Vietnam Social Security includes the revenue and expenditure plans of the Social Security under the Ministry of National Defense, Ministry of Public Security, Government Cryptographic Office, and the Ministry of Labor, Invalids, and Social Affairs (prepared according to Appendices 01 to 09 attached to this Circular). Specific contents are as follows:

a) Revenue and expenditure plans for mandatory social insurance funds, voluntary social insurance funds, unemployment insurance funds, and health insurance funds (hereinafter referred to as insurance funds) shall be compiled according to each type of revenue and expenditure as prescribed, detailed by each group of participants, beneficiaries, and average levels of revenue and expenditure for each group based on current policies and regulations, including: actual figures from the previous year, budget estimates for the current year, estimated figures for the current year, and projected figures for the planning year.

b) Management expenses: actual figures from the previous year, budget estimates for the current year, estimated figures for the current year, and projected figures for the planning year; among which, details of regular expenses, special regular expenses, and non-regular expenses shall be explained.

c) Development investment expenses: actual figures from the previous year, budget estimates for the current year, estimated figures for the current year, and projected figures for the planning year; among which, details of disbursement and implementation of approved investment projects and planned investment projects for the planning year shall be explained.

d) Investment plans from insurance funds: established and compiled according to the detailed regulations and guidance on investment activities issued by the Ministry of Finance to ensure the preservation and growth of insurance funds managed by the Vietnam Social Security.

2. Budget allocation: Within ten working days from the date of receipt of the Prime Minister's decision allocating the budget, the Vietnam Social Security must complete the allocation of revenue and expenditure budgets to subordinate units, Social Security under the Ministry of National Defense, Ministry of Public Security, Government Cryptographic Office, and the Ministry of Labor, Invalids, and Social Affairs.

3. Budget allocation and transfer of funds for pension and social insurance benefit payments for beneficiaries guaranteed by the state budget:

a) Based on the state budget expenditure budget allocated by the competent authority (including payment fees), the Vietnam Social Security shall develop a distribution plan according to the expenditure items specified in Clause 1, Article 48 of Decree No. 152/2006/NĐ-CP dated December 22, 2006, guiding certain provisions of the Law on Social Insurance regarding mandatory social insurance, and submit it to the Ministry of Finance for review. Specifically, the payment fees shall be distributed to related units as stipulated in Clause 3, Article 4 of this Circular.

b) Before the 25th day of each month, the Ministry of Finance shall transfer from the state budget an amount equal to the average monthly expenditure of the allocated budget (including payment fees) into the mandatory social insurance fund and management expenses so that the Vietnam Social Security can pay for beneficiaries in the following month and pay the fees as prescribed.

c) After the approved final settlement of the year, if there is surplus in the pension and social insurance benefit payment funds, it shall be transferred to the next year's budget for use and deducted from the allocation for the next year; in case of insufficient funds, the Ministry of Finance shall request the competent authority to supplement the budget for the adjacent year to the Vietnam Social Security.

Article 6. Management of revenue sources and settlement of contributions to insurance funds

1. Upon receipt of relevant certificates from employers paying social insurance, unemployment insurance, and health insurance contributions, the Social Insurance Agency shall record the revenues for the respective funds in the following order:

a) Collect the full amount due for the health insurance fund, including accrued interest during the period of late payment (if any).

b) Collect the full amount due for the unemployment insurance fund, including accrued interest during the period of late payment (if any).

c) The remaining amount shall be recorded as a contribution to the mandatory social insurance fund. If there is still a shortfall, the Social Insurance Agency shall urge the employer to immediately pay the outstanding amount.

2. For the interest collected due to late payments on social insurance, unemployment insurance, and health insurance contributions, subordinate Social Insurance Agencies shall consolidate and settle separately with the Vietnam Social Security. Based on the consolidated settlement data from localities, the Vietnam Social Security shall handle as follows:

a) Interest resulting from late payments on social insurance contributions shall be consolidated and settled into the pension and death benefit fund.

b) Interest resulting from late payments on health insurance contributions shall be consolidated and settled into the health insurance examination and treatment reserve fund.

c) Interest resulting from late payments on unemployment insurance contributions shall be consolidated and settled into the unemployment insurance fund.

3. The settlement of contributions to social insurance, unemployment insurance, and health insurance funds shall include: the actual amount received from contributors in the year, the amount paid or supported by the state budget (including the amount already provided by financial authorities and the amount yet to be provided), and interest penalties for late payments (if any).

4. Social Insurance Agencies at all levels must maintain accounting records to monitor overdue contributions to social insurance, unemployment insurance, and health insurance, including interest penalties for late payments (if any) from agencies, units, and organizations responsible for making such contributions; periodically compile reports to submit to competent state authorities for handling according to the law.

Article 7. Management and utilization of income generated from investment activities of insurance funds under Clause 3, Article 7 of Decision No. 04/2011/QĐ-TTg

1. At the end of the fiscal year, the Vietnam Social Security shall aggregate the total actual income generated from investment activities of insurance funds and interest accrued on deposit accounts of these funds (excluding interest on management expenses), and allocate it according to the provisions of Clause 3, Article 7 of Decision No. 04/2011/QĐ-TTg. The interest allocated to the mandatory social insurance fund shall be supplemented to the pension and death benefit fund.

2. The establishment and use of risk reserve funds in investment activities from insurance funds shall be carried out as follows:

a) The level of allocation shall be 2% of the total actual income generated from investment activities of insurance funds in the year.

b) Based on the implementation situation of investments, the balancing capacity of each insurance fund, and the source of the risk reserve fund, the Vietnam Social Security shall report to the Management Board to decide on the use according to the following contents:

- To cover losses caused by objective factors in investment activities from insurance funds;

- To supplement into the mandatory social insurance funds (pension and death benefit fund, voluntary social insurance fund, unemployment insurance fund, health insurance fund [health insurance examination and treatment reserve fund]) according to the average surplus capital ratio of each respective fund;

- Other expenditures as decided by the Management Board.

3. The Vietnam Social Security must maintain accounting records to track the interest receivable from investment activities of insurance funds, including interest penalties for late payment (if any), detailed by each investment form.

Article 8. Sources of funds for administrative management expenses

1. The budget for administrative management expenses, including retirement pensions and social insurance allowances paid from the state budget, shall be allocated by the competent authority.

2. Other sources of funds include:

a) The portion retained from interest earned on loans with rates higher than the highest deposit rate of State-owned commercial banks during the same period, as stipulated in point c, Clause 2, Article 8 of Decision No. 04/2011/QĐ-TTg.

b) The portion retained from fees collected and reissued health insurance cards, as stipulated in Circular No. 19/2010/TT-BTC dated February 3, 2010, issued by the Ministry of Finance.

c) Other sources of funds as stipulated in Clause 1, Article 12 of Decision No. 04/2011/QĐ-TTg.

Article 9. Contents and levels of administrative management expenses

1. Regular expenditures, including:

a) Salaries, wages, allowances, and contributions based on salaries: to be implemented according to the regulations set by the State.

b) Administrative management expenses: contents and levels of expenditure shall be carried out according to the State Budget Manual and current financial expenditure regulations applicable to administrative agencies and public institutions.

2. Special recurrent expenses, including:

a) Expenses serving collection work, including:

- Remuneration for organizations and individuals acting as agents for voluntary social insurance collections and health insurance collections for certain groups (including: students and trainees at educational institutions within the national education system; members of households near poverty; farmers, foresters, fishermen, and salt workers; cooperative members, individual business households): The maximum expense level shall not exceed 5% of the total amount collected from these groups (excluding amounts collected through state budget support);

- Remuneration for organizations and individuals tasked with compiling and issuing health insurance cards for children under six years old: The expense level shall be determined by the General Director of the Vietnam Social Security within the allocated budget;

- Expenses for coordinating, inspecting, auditing, and supervising collection work; supporting agencies, units, and individuals involved in recovering overdue social insurance, unemployment insurance, and health insurance payments: The expense level shall be determined by the General Director of the Vietnam Social Security within the allocated budget;

- Expenses for conducting surveys and statistics to determine the number of agencies, units, enterprises, organizations, and workers subject to mandatory social insurance, unemployment insurance, and health insurance, as prescribed by the competent authority in Clauses 2, 3, and 4, Article 10 of Decree No. 40/2004/NĐ-CP dated February 13, 2004, issued by the Government detailing and guiding the implementation of certain provisions of the Law on Statistics. The content and level of expenditure shall be carried out according to Circular No. 58/2011/TT-BTC dated May 11, 2011, issued by the Ministry of Finance, regarding the management, use, and settlement of funds for conducting surveys and statistics;

- Support expenses for officials, civil servants, and employees who must frequently travel to employing units to verify payroll lists, urge payment, or visit residential areas to register and expand the target group for social insurance and health insurance using personal means of transportation: The support expense level shall be determined by the General Director of the Vietnam Social Security within the allocated budget but shall not exceed one month's minimum wage per person per month;

b) Expenses serving payment work (excluding expenses for paying pensions and social insurance allowances), including:

- Expenses for coordinating, inspecting, auditing, and supervising the payment of social insurance, unemployment insurance, and health insurance benefits; supporting agencies, units, and individuals involved in recovering payments made incorrectly: The expense level shall be determined by the General Director of the Vietnam Social Security within the allocated budget;

- Medical uniforms for health insurance adjudicators working at healthcare facilities: two sets per person per year;

- Support expenses for healthcare facilities directly signing contracts for health insurance medical services in cooperation with adjudication, payment, and settlement of health insurance medical costs: The support expense level shall be determined by the General Director of the Vietnam Social Security within the allocated budget;

- Expenses for hiring domestic experts to adjudicate health insurance medical costs and prevent abuse (if necessary): Based on the necessity of the work and available funding, the head of the unit shall decide on hiring experts through a "Contract for Assignment of Work and Products"; the expense level shall be carried out according to the actual agreement with the contractor based on the required workload, content, and time frame;

- Support expenses for officials, civil servants, and employees who must frequently travel to inspect, verify, and supervise the management of beneficiaries in residential areas and employing units; travel to healthcare facilities to adjudicate health insurance medical costs using personal means of transportation: The support expense level shall be determined by the General Director of the Vietnam Social Security within the allocated budget but shall not exceed one month's minimum wage per person per month;

c) Expenses for social insurance books and health insurance cards: The General Director of the Vietnam Social Security shall issue procedures for making social insurance books and health insurance cards. The content and level of expenditure shall be carried out according to current expenditure regulations;

d) Expenses for printing forms, vouchers, reports used for professional purposes: The expense level shall be carried out according to actual costs and local prices;

đ) Expenses for promoting and disseminating policies and laws on social insurance, unemployment insurance, and health insurance. The content and level of expenditure shall be carried out according to Articles 2 and 3 of Joint Circular No. 73/2010/TTLT-BTC-BTP dated May 14, 2010, issued by the Ministry of Finance and the Ministry of Justice, guiding the establishment, management, use, and settlement of funds for the dissemination and education of laws.

e) Transportation and security costs for money: fuel expenses or rental fees for transportation means, hiring security forces when transporting money from collection agencies to social insurance agencies (if applicable), from social insurance agencies to deposit at banks or State Treasury, and vice versa: The actual expenses incurred or rental contracts for transportation means and security forces shall be applied.

g) Fees for transferring money paid to banks, State Treasury.

h) Fees for paying pensions, social insurance benefits, and unemployment allowances (including fees paid from the state budget), including:

- Deducting 2% of the total fees for payments as stipulated (including the amount deducted on social insurance payments made by the Social Insurance under the Ministry of National Defense, Ministry of Public Security, and the Office of Official Communication) to establish a risk reserve fund for pension, social insurance benefit, and unemployment allowance payment operations according to Point a, Clause 2, Article 6 of Decision No. 04/2011/QD-TTg. When the balance of the fund exceeds the total amount deducted over the preceding two years, the General Director of the Vietnam Social Security will determine the percentage to be deducted for the risk reserve fund in subsequent years appropriately.

- Expenses for printing forms, pension withdrawal slips, and lists of beneficiaries.

- Costs for issuing ATM cards for beneficiaries who require payment through ATMs and transfer fees to bank accounts. Annual maintenance fees for bank accounts are borne by the cardholder according to commercial bank regulations.

- Rental fees for transportation means and security forces during the process of transporting money to payment points in communes, wards, and towns.

- Costs for purchasing currency counters and money packaging bags provided to organizations and individuals acting as payment agents. The minimum usage period for currency counters is three years; provision and replacement are based on actual needs and available funding.

- Costs for purchasing safes provided to organizations and individuals acting as payment agents. The minimum usage period for safes is ten years; provision and replacement are based on actual needs and available funding. Safes are state assets provided to payment agents and must be carefully managed and maintained during use; upon ceasing to act as a payment agent, they must be returned to the social insurance agency that signed the contract. The social insurance agency does not need to record them as unit assets but must fully document the provision and replacement of safes for payment agents within their jurisdiction.

- Support costs for organizations and individuals acting as payment agents to directly pay beneficiaries and manage beneficiaries in their area (including: remuneration for individuals involved in payments, water support, venue rental fees for payment days, and security force rental fees): The level of support costs is determined by the General Director of the Vietnam Social Security, consistent with local conditions, but must ensure that the total cost for this item does not exceed 50% of the total fees for payments deducted according to regulations.

- Rewards for collectives and individuals performing well in payment tasks: the number of collectives and individuals receiving rewards is decided by the General Director of the Vietnam Social Security; the reward amounts are implemented according to the Law on Commendation and Reward and related guiding documents.

- Other expenses, including: currency exchange fees for damaged bills, overnight storage fees for cash at bank warehouses (if applicable), support for civil servants during payment days in communes, wards, and towns, and other direct expenses serving payment tasks and beneficiary management in the area.

i) Operating costs of the Vietnam Social Security Management Board, including:

- Allowances for concurrent positions for members of the Management Board.

- Travel expenses for Management Board members when inspecting and supervising the collection, payment, management, and use of insurance funds.

- Meeting organization costs: office supplies, printing materials, drinking water, and allowances for Management Board members and invited representatives.

- Other costs supporting the activities of the Management Board.

k) Litigation fees, enforcement fees, and legal consultation fees in cases where the social insurance agency transfers case files to legal authorities for handling violations of social insurance, unemployment insurance, and health insurance laws: The expenses are implemented according to current state regulations.

l) Costs for preserving and storing documents according to regulations.

m) Costs for reviewing beneficiary application files; overtime and night shift allowances according to current regulations: The level of expenditure is determined by the General Director of the Vietnam Social Security within the allocated budget.

n) Costs for organizing meetings, seminars, and roundtable discussions on business practices and experiences in implementing collection and payment of insurance funds: Implemented according to current regulations on the expenditure system for scientific conferences.

o) Costs for organizing training and guidance sessions on specialized business practices for social insurance, unemployment insurance, and health insurance collection and payment: Implemented according to current regulations on conference expenditure systems.

p) Other expenses as prescribed by competent authorities.

3. Non-recurring expenses, including:

a) Training and professional development expenses for officials: Implemented according to current regulations of the Ministry of Finance on managing and using training and development funds for civil servants.

b) Research expenses: Implemented according to current regulations on the expenditure system for scientific and technological tasks.

c) Expenses for purchasing cars and work equipment: Implemented according to current regulations on public asset procurement and work equipment.

d) Repair expenses for cars, equipment, and work tools.

đ) Expenses for establishing information technology databases to serve the management of beneficiaries: Implemented according to current regulations of the Ministry of Finance on electronic data creation costs under information technology and current regulations on information technology, database construction, and management.

e) Other expenses as prescribed by competent authorities.

4. Within the budget for administrative management expenses allocated and other sources of funds used in accordance with this Circular, the Vietnam Social Security shall proactively arrange and allocate expenditure tasks to ensure the completion of assigned tasks and implement measures to save funds, with the saved funds being used in accordance with Clause 3 of Article 9 of Decision No. 04/2011/QĐ-TTg.

5. Implementation of additional income expenditures:

a) Based on the financial results of the year, to promptly motivate employees to strive to complete assigned tasks, the Vietnam Social Security shall implement expenditures for quarterly additional income not exceeding 60% of the saved administrative management expenses portion designated for additional income determined on a quarterly basis.

b) After the annual settlement has been approved, the Vietnam Social Security shall determine the actual saved administrative management expenses and the additional income expenditure funds of the previous year according to the internal expenditure regulations of the sector to pay additional income to employees in accordance with the following principles:

- In the case where the actual saved administrative management expenses exceed the amount self-determined by the Vietnam Social Security and the additional income payment expenses (in accordance with the prescribed regulations) are greater than the amount already paid as additional income to employees, the Vietnam Social Security may continue to pay additional income to employees in accordance with the prescribed regulations.

- In the case where the actual saved administrative management expenses are less than the amount self-determined by the Vietnam Social Security and the amount already paid as additional income to employees exceeds the amount allowed to be paid under the prescribed regulations, the excess expenditure must be covered by the stable income reserve fund. If there is still a shortfall after using the stable income reserve fund to cover it, it will be deducted from the portion of saved administrative management expenses designated for additional income payments in the following year; if there is no saved administrative management expenses in the following year, it will be deducted from the sector's salary fund.

6. The General Director of the Vietnam Social Security is responsible for establishing and promulgating expenditure standards and regulations that are appropriate to the activities of the sector based on applying the standards and regulations set by the State for administrative agencies and public institutions; deciding on the plan for using saved funds for transparency and implementation throughout the sector.

Article 10. Investment development expenditures of the Vietnam Social Security in accordance with Article 10 of Decision No. 04/2011/QĐ-TTg

1. The procedures and steps for project planning and implementation, project management for basic construction projects and information technology development projects of the Vietnam Social Security shall be carried out in accordance with the laws on investment and construction management.

2. The preparation of plans, review and allocation of capital plans, and capital disbursement shall be conducted in accordance with the Ministry of Finance's regulations on managing and disbursing capital for investment and investment-like expenditures from state budget funds. Capital allocated for projects that have not been fully disbursed within the planned year can be carried over to the next year for continued disbursement.

3. The final settlement of investment capital for completed projects shall be carried out in accordance with the Ministry of Finance's regulations on finalizing completed projects funded by state capital.

Section III
MANAGEMENT, USE AND SETTLEMENT OF FUNDS FOR ADMINISTRATIVE MANAGEMENT EXPENSES

SOCIAL INSURANCE, HEALTH INSURANCE FOR SOCIAL INSURANCE UNDER

THE MINISTRY OF NATIONAL DEFENSE, THE MINISTRY OF PUBLIC SECURITY, THE COUNCIL OF ASSISTANT OFFICIALS OF THE GOVERNMENT

Article 11. Sources of funds to be used

1. The annual budget for managing social insurance and health insurance activities of social insurance under the Ministry of National Defense, the Ministry of Public Security, and the Office of Official Communications of the Government shall be guaranteed by the Vietnam Social Security and determined as follows:

a) Regular expenses for contractual employees hired by the unit head in accordance with the law, if applicable (only applicable to the social insurance organizations specified in Clause 3, Article 12 of this Circular), including:

- Salary, wages, allowances, and contributions according to salary as prescribed by the State.

- Administrative management costs: determined based on the number of contractual employees recruited and the allocation standard for regular administrative management expenses for ministries, ministerial-level agencies, government agencies, and other central agencies as stipulated by the Prime Minister's regulations on issuing standards for allocating regular state budget expenses (calculated based on the allocation standard applied to the Vietnam Social Security).

b) Special regular expenses and non-regular expenses are determined based on assigned tasks and expenditure levels according to prescribed regulations.

2. Other sources of funds include:

a) The portion retained from fees for issuing and replacing health insurance cards as stipulated in Circular No. 19/2010/TT-BTC dated February 3, 2010, issued by the Ministry of Finance.

b) Support from the Vietnam Social Security from interest income allocated to supplement the budget for managing the organizational structure from the excess interest rate on loans compared to the highest deposit interest rate of state commercial banks during the same period as stipulated in point c, Clause 2, Decision No. 04/2011/QĐ-TTg (implemented according to the decision of the General Director of the Vietnam Social Security).

c) Other sources of funds as stipulated in Clause 1, Article 12 of Decision No. 04/2011/QĐ-TTg.

Article 12. Contents and Levels of Expenditure

1. Special regular expenses, including:

a) Expenses for serving social insurance and health insurance collection and payment activities (excluding expenses for collecting social insurance benefit payments), including:

- Remuneration for organizations and individuals acting as agents for voluntary social insurance collections and health insurance collections from workers under labor contracts of less than three months, participants in production and business activities without receiving salaries or wages, and other participants in military, police, and official communication agencies (if applicable): the maximum expense not exceeding 5% of the total amount collected from contributors;

- Expenses for coordinating, inspecting, auditing, and supervising collection and payment activities; supporting agencies, units, and individuals involved in the process of recovering overdue social insurance and health insurance payments: the level of expense is decided by the unit head within the allocated budget;

- Supporting expenses for main units under the Ministry of National Defense, the Ministry of Public Security, and the Office of Official Communications of the Government in coordinating management, directing, and implementing social insurance and health insurance policies and systems in military, police, and official communication agencies: the level of support expense is decided by the unit head within the allocated budget;

- Supporting expenses for statistical work, data compilation, and reporting on the implementation of social insurance and health insurance policies; reviewing and approving beneficiary files; overtime pay according to current regulations: the level of expense is decided by the unit head within the allocated budget;

- Expenses for organizing meetings, seminars, and discussions on the implementation of social insurance and health insurance in the military, police, and official communication sectors: implemented according to current regulations on organizing scientific conferences;

- Expenses for organizing training sessions and guiding operations related to social insurance and health insurance collection and payment for agencies and units under the Ministry of National Defense, the Ministry of Public Security, and the Office of Official Communications of the Government: implemented according to current regulations of the Ministry of Finance on conference expenses;

In cases where the competent authority assigns the task of signing direct medical examination and treatment contracts with healthcare facilities under the Ministry of National Defense, the Ministry of Public Security, or civilian healthcare facilities for medical examination and treatment of beneficiaries covered by the unit's health insurance card (if applicable), the following expenses may be incurred:

+ Medical uniforms for health insurance examiners working at healthcare facilities: two sets per person per year;

+ Supporting expenses for healthcare facilities directly signing health insurance medical examination and treatment contracts in cooperation with examination, settlement, and finalization of health insurance medical examination and treatment costs: the level of support expense is decided by the unit head within the allocated budget;

+ Hiring domestic experts to examine health insurance medical examination and treatment costs and prevent abuse (if necessary): based on the necessity of the work and financial capacity, the unit head decides on hiring experts through a "Contract for Assignment of Work and Products"; the actual expense is carried out according to the agreement in the contract regarding workload, content, and time of execution.

b) Expenses for social insurance books and health insurance cards according to models and procedures issued by the General Director of the Vietnam Social Security: the content and level of expense are carried out according to current expenditure regulations.

c) Expenses for printing forms, certificates, reports used for professional purposes: the level of expense is carried out according to actual costs and local prices.

d) Expenses for disseminating and popularizing social insurance and health insurance laws and policies in agencies and units under the Ministry of National Defense, the Ministry of Public Security, and the Office of Official Communications of the Government. The content and level of expense are carried out according to provisions in Articles 2 and 3 of Joint Circular No. 73/2010/TTLT-BTC-BTP dated May 14, 2010, issued by the Ministry of Finance and the Ministry of Justice guiding the establishment, management, use, and settlement of funds for legal education and dissemination.

đ) Expenses for bank transfer fees for payment.

e) Expenses for paying social insurance benefits (excluding payments for sickness and maternity benefits), including:

- Printing and issuance of forms and lists of beneficiaries.

- Support for units and individuals directly paying social insurance benefits to beneficiaries: The specific amount is determined by the head of the unit but must not exceed 50% of the total fees allocated for payment in the year according to the prescribed regulations.

- Rewards for collectives and individuals performing well in the payment of social insurance benefits: The number of collectives and individuals eligible for rewards is decided by the head of the unit within the scope of the allocated payment fees; the reward levels are implemented in accordance with the Law on Encouragement and Reward and related guiding documents.

g) Costs for preserving and storing documents in accordance with regulations.

h) Other expenses as prescribed by competent authorities.

2. Irregular expenditures, including:

a) Training and professional development expenses for officials: Implemented according to current regulations of the Ministry of Finance on managing and using training and development funds for civil servants.

b) Research expenses: Implemented according to current regulations on the expenditure system for scientific and technological tasks.

c) Expenses for purchasing equipment and working tools: Implemented in accordance with current regulations on public asset procurement and working tools.

d) Repair expenses for cars, equipment, and work tools.

đ) Expenses for studying, exchanging experiences abroad and hosting foreign guests visiting Vietnam to implement social insurance and health insurance policies for military personnel, police officers, and cryptographic staff: Decided by the competent authority.

e) Expenses for establishing an information database to serve the management of beneficiaries: Implemented in accordance with current regulations of the Ministry of Finance regarding the establishment of electronic information under information technology and current regulations on information technology, construction, and management of databases.

g) Other expenses as prescribed by competent authorities.

3. For social insurance organizations established in accordance with Clause 1, Article 48 of Decree No. 68/2007/NĐ-CP dated April 19, 2007, of the Government detailing and guiding the implementation of certain provisions of the Social Insurance Law concerning mandatory social insurance for military personnel, police officers, and cryptographic staff (which are independent budget units, have their own seals and accounts, and organize accounting systems in accordance with the Accounting Law), in addition to the expenditure items stipulated in Clauses 1 and 2 of this Article, they also implement:

a) Salaries, wages, allowances, contributions based on salary, and regular expenditures for contractual employees (if any): Content and level of expenditure are carried out in accordance with the State Budget Appendix and current financial expenditure regulations for administrative agencies and public institutions.

b) Within the allocated budget for managing social insurance and health insurance activities and other sources of funds used in accordance with this Circular, units proactively arrange and allocate tasks to ensure completion of assigned tasks and implement measures to save funds; the saved funds are used as follows:

- Supplementing income for cadres, civil servants, public officials, and contractual employees in the unit: The maximum additional wage fund is 1.0 times the level of rank-based pay, grade, and position allowances, and allowances exceeding the framework (if any) as prescribed by the State.

- Setting up a reward and welfare fund up to three months' worth of salaries, wages, and actual income earned during the year by cadres, civil servants, public officials, and contractual employees in the unit to reward regularly or unexpectedly for individuals and groups within the unit; individuals and groups outside the unit who have made significant contributions to the unit's activities; collective welfare expenses.

- Establishing a reserve fund for income stability to ensure income stability for cadres, civil servants, public officials, and contractual employees in the unit due to objective reasons reducing income; supporting cadres, civil servants, public officials, and contractual employees in the unit facing difficult circumstances, suffering from serious illnesses, or special cases.

- Establishing a development activity fund to supplement capital for infrastructure construction, purchase of equipment and working tools, application of scientific and technological progress, additional training and instruction to enhance work capacity for cadres, civil servants, and public officials in the unit.

- Any surplus funds saved after supplementary income and setting up the funds at the end of the fiscal year can be transferred to the next year for continued use in administrative management costs.

4. Social insurance under the Ministry of National Defense, Ministry of Public Security, and the Government Cryptographic Board are responsible for developing expenditure standards and regulations suitable for the unique activities of the unit based on applying state-prescribed standards and formulating plans for using saved funds (for social insurance organizations specified in Clause 3 of this Article), submitting them to the General Director of the Vietnam Social Security for issuance as a basis for implementation.

Article 13. Budget Preparation and Settlement

1. Budget Preparation: Annually, at the time specified for preparing the state budget, the Social Insurance under the Ministry of National Defense, the Ministry of Public Security, and the Government Office of Official Communications shall base on work requirements to prepare the budget for managing social insurance and health insurance expenses according to point b, Clause 1, Article 5 of this Circular and consolidate them within the overall budget for social insurance and health insurance revenues and expenditures as prescribed, then submit to the Vietnam Social Security for review and consolidation to be submitted to the competent authority for decision.

2. Annual Settlement Report Preparation and Submission: The Social Insurance under the Ministry of National Defense, the Ministry of Public Security, and the Government Office of Official Communications are responsible for settling the management expenses for social insurance and health insurance provided by the Vietnam Social Security and consolidating them within the annual settlement report for social insurance and health insurance revenues and expenditures, to be submitted to the Vietnam Social Security before May 31 of the following year.

Chapter IV
MANAGEMENT, USE AND SETTLEMENT OF EXPENSES FOR MANAGING SOCIAL INSURANCE FOR UNEMPLOYMENT BENEFITS FOR UNITS UNDER THE LABOR SECTOR

UNEMPLOYMENT INSURANCE FOR ENTITIES UNDER THE LABOR SECTOR

Article 14. Sources of Funds to be Used

1. The annual budget for managing unemployment insurance activities of the labor sector guaranteed by the Vietnam Social Security shall be determined as follows:

a) Salaries, wages, allowances, and contributions based on salaries according to current regulations for the number of personnel quotas for unemployment social insurance assigned by the competent state agency.

b) Administrative management costs: determined based on the number of personnel quotas for unemployment social insurance assigned and the allocation standard for administrative management budgets for ministries, ministerial-level agencies, government agencies, and other central agencies as stipulated by the Prime Minister's regulations on issuing standards for allocating regular state budget expenditure budgets (based on the allocation standard applicable to the Vietnam Social Security).

c) Special recurrent costs and non-recurrent costs are determined based on assigned tasks and expenditure levels according to established regulations.

2. Other sources of funds as prescribed in Clause 1, Article 12 of Decision No. 04/2011/QĐ-TTg.

Article 15. Contents and Levels of Expenditure

1. Regular expenditures, including:

a) Salaries, wages, allowances, and contributions based on salaries: to be implemented according to the regulations set by the State.

b) Administrative management expenses: contents and levels of expenditure shall be carried out according to the State Budget Manual and current financial expenditure regulations applicable to administrative agencies and public institutions.

2. Special recurrent expenses, including:

Article 15. Content and Levels of Expenditure

a) Costs for supporting coordination, inspection, supervision work; organizing registration for unemployment, unemployment benefit claims, and implementing procedures for unemployment insurance benefits: The level of expenditure is decided by the head of the unit within the allocated budget.

b) Costs for printing forms, certificates, reports for professional use: The level of expenditure is implemented based on actual costs and local prices.

c) Costs for preserving and storing documents according to regulations.

d) Fees for transferring funds for managing unemployment insurance activities.

đ) Costs for disseminating and popularizing unemployment insurance policies and laws: The content and level of expenditure are carried out according to Articles 2 and 3 of Joint Circular No. 73/2010/TTLT-BTC-BTP dated May 14, 2010, issued by the Ministry of Finance and the Ministry of Justice guiding the preparation, management, use, and settlement of funds for legal education and dissemination work.

e) Costs for organizing meetings, seminars, and discussions on the organization of unemployment registration, unemployment benefit claims, and implementation of unemployment insurance benefit procedures: Implemented according to current regulations on the expenditure system for scientific seminars.

g) Costs for organizing training conferences and guidance on professional matters related to the organization of unemployment registration, unemployment benefit claims, and implementation of unemployment insurance benefit procedures: Implemented according to current regulations of the Ministry of Finance on conference expenditure systems.

h) Costs for supporting staff who must travel and verify unemployment registration and unemployment benefit claimant files, cross-checking unemployment insurance records with social security offices, employers, and residential areas using personal means of transportation: The level of support cost is decided by the head of the unit directly using the funds within the allocated budget but not exceeding one month of the national minimum wage per person per month.

i) Costs for reviewing unemployment beneficiary files; overtime pay according to current regulations: The level of expenditure is decided by the head of the unit directly using the funds within the allocated budget.

3. Non-recurring expenses, including:

a) Training and professional development expenses for officials: Implemented according to current regulations of the Ministry of Finance on managing and using training and development funds for civil servants.

b) Research expenses: Implemented according to current regulations on the expenditure system for scientific and technological tasks.

c) Expenses for purchasing equipment and working tools: Implemented in accordance with current regulations on public asset procurement and working tools.

d) Repair expenses for cars, equipment, and work tools.

k) Other costs as prescribed by the competent authority.

đ) Costs for studying and exchanging experiences abroad and hosting foreign guests visiting Vietnam to implement unemployment insurance: Decided by the competent authority.

g) Other expenses as prescribed by competent authorities.

e) Costs for establishing a database to serve the management of unemployment beneficiaries: Implemented according to current regulations of the Ministry of Finance on the creation of electronic information and current regulations on information technology and database construction and management.

4. Within the allocated budget for managing unemployment insurance activities and other sources of funds used according to this Circular, units shall proactively arrange and allocate tasks to ensure completion of assigned tasks and implement measures to save funds. The saved funds shall be used as follows:

a) To supplement income for employees in the unit: An additional factor of up to 1.0 times the salary fund according to rank and grade and position allowances, seniority allowances beyond the ceiling (if any) for employees within the assigned personnel quota for unemployment social insurance.

b) To establish a reward fund, welfare fund, and income stabilization reserve fund. For the reward fund and welfare fund, the maximum deduction rate is three months' salary, wages, and actual income realized in the year for employees within the assigned personnel quota for unemployment social insurance.

c) To establish a development fund for public service activities.

5. Additional income sources for employees and the establishment of funds as prescribed in Clause 4 of this Article shall be consolidated into the additional income sources and the fund contributions of the unit. The head of the unit shall stipulate the internal expenditure regulations of the unit and decide on the plan to utilize savings funds in accordance with the laws on self-management and financial responsibility for public service units that partially self-finance their operational costs.

Article 16. Budget preparation, budget allocation, transfer of funds, and final accounts settlement

1. Budget preparation: Annually, at the time specified for preparing the state budget, the Ministry of Labor, Invalids, and Social Affairs shall prepare the budget for managing unemployment insurance activities based on the assigned tasks, in accordance with Point b, Clause 1, Article 5 of this Circular, and submit it to the Vietnam Social Security for review and consolidation before submitting it to the competent authority for decision.

2. Budget allocation: Within ten working days from the date of receipt of the budget allocation document from the Vietnam Social Security, the Ministry of Labor, Invalids, and Social Affairs shall complete the allocation and distribution of the management activity budget and publicly announce the budget allocation standards for units in accordance with current regulations.

3. Fund transfer: The Ministry of Labor, Invalids, and Social Affairs shall transfer the amount provided by the Vietnam Social Security into the deposit accounts of the units in accordance with the principle stipulated in Point a, Clause 1, Article 3 of this Circular.

4. Preparation and submission of annual final account report:

a) Units directly using funds shall be responsible for preparing and submitting the annual final account report in accordance with the current accounting system for administrative and public service units regarding the management activity funding, to the Ministry of Labor, Invalids, and Social Affairs before March 31 of the following year.

b) The Ministry of Labor, Invalids, and Social Affairs shall be responsible for reviewing and auditing the annual final account report on management activity funding of units under the labor sector, informing the results of the review to the units; consolidating and preparing the annual final account report in accordance with the current accounting system for administrative and public service units, and submitting it to the Vietnam Social Security before May 31 of the following year.

Section V
IMPLEMENTING PROVISIONS

Article 17. Effective Date

1. This Circular takes effect from November 15, 2011; the provisions of this Circular shall be implemented from the 2011 fiscal year.

2. Abolish the following documents and provisions:

a) Circular No. 58/2007/TT-BTC dated June 12, 2007, of the Ministry of Finance guiding financial management for the Vietnam Social Security, and Circular No. 82/2008/TT-BTC dated September 30, 2008, of the Ministry of Finance amending and supplementing some points of Circular No. 58/2007/TT-BTC dated June 12, 2007, guiding financial management for the Vietnam Social Security;

b) Article 5 of Circular No. 96/2009/TT-BTC dated May 20, 2009, of the Ministry of Finance guiding the financial regime for the unemployment insurance fund.

Article 18. Implementation Organization

1. To effectively implement the payment of pensions, social insurance allowances, unemployment benefits, and voluntary social insurance and health insurance collections at commune, ward, and town levels, the Vietnam Social Security shall instruct its subordinate units:

a) To consolidate and improve the network of collection and disbursement agents at commune, ward, and town levels to promptly and effectively implement social insurance, unemployment insurance, and health insurance policies.

b) To promote and mobilize pension recipients and monthly social insurance allowance beneficiaries residing in areas with ATM payment systems to switch to ATM payment methods to ensure timely, secure, and cost-effective payments.

c) To closely coordinate with Commune People's Committees in compiling lists of children under six years old to ensure timely issuance of health insurance cards for this group.

2. During the implementation process, if there are any difficulties, they should be reported promptly to the Ministry of Finance for study and resolution./.