Circular No. 14/2006/TT-BLDTBXH guiding the increase in pension and social insurance benefits according to Decree No. 94/2006/NĐ-CP dated September 7, 2006 of the Government.

CIRCULAR

Guidelines for increasing pensions and social insurance benefits pursuant to Decree No. 94/2006/NĐ-CP dated September 7, 2006 of the Government

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Pursuant to Decree No. 94/2006/NĐ-CP dated September 7, 2006 of the Government adjusting the national minimum wage, the Ministry of Labor - War Invalids and Social Affairs guides the increase in pensions and monthly social insurance benefits as follows:

I. APPLICABLE SUBJECTS

1. Cadres, civil servants, workers, employees, and laborers; military personnel, public security officers, and personnel engaged in confidential work who are receiving pensions before October 1, 2006.

2. Cadres of communes, wards, and towns as stipulated in Decree No. 121/2003/NĐ-CP dated October 21, 2003 and Decree No. 09/1998/NĐ-CP dated January 23, 1998 of the Government who are receiving pensions and monthly allowances before October 1, 2006.

3. Workers and employees who are receiving disability allowances including those receiving allowances under Decision No. 91/2000/QĐ-TTg dated August 4, 2000 of the Prime Minister.

4. Rubber plantation workers who are receiving monthly allowances.

5. Persons receiving work injury and occupational disease allowances and survivor benefits before October 1, 2006.

6. Persons receiving sickness and maternity allowances before October 1, 2006.

II. INCREASE IN PENSIONS AND SOCIAL INSURANCE BENEFITS

1. The subjects specified in Clauses 1, 2, 3, and 4 of Section I of this Circular shall have their pensions and monthly allowances increased as follows:

Example 1: Mr. Nguyen Van A, whose pension has been adjusted according to Circular No. 13/2006/TT-LĐTBXH, is 907,500 VND/month.

Mr. A's pension from October 2006 is calculated as follows:

907,500 VND/month x 1.286 = 1,167,045 VND/month

Example 2: Mr. Nguyen Van B, rank Lieutenant Colonel, whose pension has been adjusted according to Circular No. 13/2006/TT-LĐTBXH, is 1,341,360 VND/month.

Mr. B's pension from October 2006 is calculated as follows:

1,341,360 VND/month x 1.286 = 1,724,989 VND/month

Example 3: Mr. Tran Quang D, who worked in the state sector and then transferred to a joint venture company, whose pension has been adjusted according to Circular No. 13/2006/TT-LĐTBXH, is 1,050,000 VND/month.

Mr. D's pension from October 2006 is calculated as follows:

1,050,000 VND/month x 1.286 = 1,350,300 VND/month

Example 4: Mr. Vu Van E, a retired commune cadre receiving monthly allowances according to Decree No. 09/1998/NĐ-CP, whose allowance has been adjusted according to Circular No. 13/2006/TT-LĐTBXH, is 359,370 VND/month.

Mr. E's allowance from October 2006 is calculated as follows:

359,370 VND/month x 1.286 = 462,150 VND/month

Example 5: Mr. Nguyen Van G, who retired and receives monthly disability allowances, whose allowance has been adjusted according to Circular No. 13/2006/TT-LĐTBXH, is 450,000 VND/month.

Mr. G's disability allowance from October 2006 is calculated as follows:

450,000 VND/month x 1.286 = 578,700 VND/month

Example 6: Mr. Tran Van T, who stopped working in December 2002 to wait until retirement age to receive monthly allowances according to Decree No. 09/1998/NĐ-CP, whose monthly allowance has been adjusted according to Circular No. 13/2006/TT-LĐTBXH, is 465,890 VND/month.

Mr. T's allowance from October 2006 is calculated as follows:

465,890 VND/month x 1.286 = 599,135 VND/month

2. Subjects specified in Clause 5 of Section I of this Circular, their work injury, occupational disease allowances, and survivor benefits are increased as follows:

a) Persons receiving work injury, occupational disease allowances, and survivor benefits before October 1, 2006:

Example 7: Mr. Tran Van K, whose monthly work injury allowance is 210,000 VND/month.

Mr. K's allowance from October 2006 is calculated as follows:

210,000 VND/month x 1.286 = 270,060 VND/month

b) Persons who were discharged from hospital due to work injury or occupational disease before October 1, 2006 but had not yet received allowances, the allowance for the period before October 1, 2006 will be paid at the September 2006 rate.

c) Persons with work injury or occupational disease resulting in a loss of work capacity of 81% or more, their monthly service allowance will be increased as follows:

d) Persons who died before October 1, 2006 and whose relatives have not yet received funeral expenses and survivor benefits, the funeral expenses and survivor benefits for the period before October 1, 2006 will be paid at the September 2006 rate.

3. Subjects specified in Clause 6 of Section I of this Circular, if they continue to receive allowances from October 1, 2006 onwards, the allowance will be calculated based on the national minimum wage of 450,000 VND/month.

4. Military personnel and public security officers who have transferred to civilian jobs and retired or stopped working due to disability, who receive transfer allowances according to Article 3 of Decision No. 812/TTg dated December 12, 1995 of the Prime Minister, from October 1, 2006, the transfer allowance will be calculated based on the national minimum wage of 450,000 VND/month.

5. Retirees living alone who receive pensions according to Article 2 of Decision No. 812/TTg dated December 12, 1995 of the Prime Minister, if the pension calculated according to Clause 1 of Section II of this Circular is lower than 675,000 VND/month, from October 1, 2006 it will be adjusted to 675,000 VND/month.

6. Persons receiving pensions, disability allowances, work injury, and occupational disease allowances monthly residing in areas with regional allowances, from October 1, 2006, the regional allowance will be calculated based on the national minimum wage of 450,000 VND/month.

7. Persons receiving pensions after adjustment according to Clause 1 of Section II of this Circular, if the pension is lower than 450,000 VND/month, they will receive 450,000 VND/month.

III. IMPLEMENTATION

1. The Ministry of Labor - War Invalids and Social Affairs shall coordinate with the Ministry of Finance, the Ministry of Defense, and the Ministry of Public Security to organize guidance and inspection of implementation in accordance with Decree No. 94/2006/NĐ-CP and this Circular.

2. The People's Committees of provinces and centrally governed cities shall be responsible for directing the Departments of Labor, Invalids, and Social Affairs and relevant competent agencies to inspect and urge the implementation of the provisions of this Circular.

3. The Vietnam Social Security shall be responsible for implementing the increase in pension and social insurance benefits as prescribed in Decree No. 94/2006/NĐ-CP and guided in this Circular; prepare reports according to the attached model of this Circular and submit them to the Ministry of Labor, Invalids, and Social Affairs and the Ministry of Finance.

4. Additional funds resulting from the adjustment of pensions and social insurance benefits paid from the State budget shall be guaranteed by the Ministry of Finance.

5. This Circular shall take effect fifteen days after its publication in the Official Gazette; the provisions of this Circular shall apply from October 1, 2006.

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