Decision No. 144/2005/QD-TTg Amending and Supplementing Certain Provisions of the Financial Management Regulation for the Vietnam Social Security issued together with Decision No. 02/2003/QD-TTg dated January 2, 2003 of the Government Prime Minister.

Pursuant to …;

Regarding the amendment and supplementation of certain provisions of the Financial Management Regulation

 for the Vietnam Social Security issued together with

Decision No. 02/2003/QĐ-TTg dated January 2, 2003 of the Prime Minister

_____________________________ 

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to Decree No. 100/2002/NĐ-CP dated December 6, 2002 of the Government on the functions, tasks, powers, responsibilities, and organizational structure of the Vietnam Social Security;

At the proposal of the Minister of Finance,

DECISION:

Article 1. Amending and supplementing certain provisions of the Financial Management Regulation for the Vietnam Social Security issued together with Decision No. 02/2003/QĐ-TTg dated January 2, 2003 of the Prime Minister as follows:

1. Amend and supplement Article 18:

"1. The annual operating funds of the Vietnam Social Security system shall be extracted from the profits generated by implementing measures to preserve the funds, at a percentage rate based on the total actual social insurance and health insurance contributions received annually (including those paid by employers and contributors).

The operating funds of the Vietnam Social Security system mentioned above include funds for major repairs, acquisition of fixed assets, and research and training expenses; excluding construction investment costs and implementation of information technology projects approved by competent authorities.

The annual extraction rate is 3.6%, and it will remain stable for three years from 2005 to 2007.

2. The average salary level of the entire Vietnam Social Security sector is set at two times the state-prescribed salary regime for civil servants and public officials (including salaries and wages for contractual employees under current regulations).

The distribution of salaries within the Vietnam Social Security must reflect performance and quality of work completion by each staff member, ensuring fairness and reasonableness, and linking salaries to job effectiveness.

3. Encourage the Vietnam Social Security to streamline staffing and reduce management costs while ensuring the fulfillment of assigned tasks. The Vietnam Social Security may use saved funds for the following purposes:

a) Establishing a reward fund and welfare fund not exceeding three months' actual average salary of the entire sector.

b) The Management Council of the Vietnam Social Security approves additional allowances outside the general state policy for employees voluntarily retiring under labor restructuring and downsizing policies, and the amount allocated to the Income Stability Reserve Fund for civil servants and officials, providing the General Director of the Vietnam Social Security with a basis for implementation.

c) The remaining portion (after allocating for the above purposes) shall be added to the Insurance Fund.

4. Contributions and benefits under social insurance and health insurance schemes for civil servants and officials in the Vietnam Social Security sector shall be calculated according to the salary coefficient and allowances stipulated in Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government and the minimum wage prescribed by the State.

5. The General Director of the Vietnam Social Security is responsible for establishing expenditure standards and budgets suitable for the sector's operations, based on applying national standards and within the scope of the allocated budget as specified in Clause 1 of Article 18 of this Decision, and submitting them to the Management Council of the Vietnam Social Security for approval and public disclosure throughout the sector.

6. Within the annual extracted funds, the Management Council of the Vietnam Social Security decides on the budget for the operation of the system's administrative machinery based on expenditure standards and the specific nature of the sector, ensuring efficient and economical use. 7. The General Director of the Vietnam Social Security is responsible for allocating the approved administrative operation budget to various levels of the Vietnam Social Security in accordance with assigned tasks, ensuring that the allocated budget for each level does not exceed the total amount granted."

2. Amend Clause 1 of Article 19:

"1. Annually, based on the administrative management expenditure ratio specified in Clause 1 of Article 18, the General Director of the Vietnam Social Security shall prepare the budget for the operation of the system's administrative machinery, submit it to the Management Council for approval, and send it to the Ministry of Finance for monitoring and supervision of its implementation."

3. Amend Clause 1 of Article 20:

"1. Construction investment funds for the Vietnam Social Security system shall be extracted from the profits generated by implementing preservation and growth measures as stipulated in Clause 2 of Article 22 of this Decision."

4. Amend Article 22:

"Annual profits from investments and growth of the Insurance Funds shall be allocated and utilized as follows:

1. Extract administrative management funds for the Vietnam Social Security system as provided in Clause 1 of Article 18.

2. Extract construction investment funds for the entire system according to approved projects and information technology programs.

3. The remainder shall be added to the Insurance Funds."

Article 2. This Decision takes effect from July 1, 2005. All previous regulations contrary to this Decision cease to be effective. The Minister of Finance is responsible for presenting to the Prime Minister the administrative management expenditure ratio for the Vietnam Social Security for application in the subsequent period.

Article 3. The Minister of Finance is responsible for guiding the implementation of this Decision.

Article 4. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of People's Committees of provinces and centrally governed cities, the Management Council of the Vietnam Social Security, and the General Director of the Vietnam Social Security are responsible for enforcing this Decision./.