Circular No. 17/TT-LDTBXH guiding the implementation of mandatory social insurance for workers going to work abroad for a limited period.

CIRCULAR

Guidelines for Implementing Social Insurance Obligations for Workers Going Abroad on Fixed-term Contracts 

Pursuant to the Labor Code, the Social Insurance Regulations issued together with Decree No. 12/CP dated January 26, 1995, and Decree No. 07/CP dated January 20, 1995 of the Government regarding the dispatch of Vietnamese workers abroad on fixed-term contracts; the Ministry of Labor, Invalids, and Social Affairs hereby provides guidelines for implementing social insurance obligations for workers going abroad on fixed-term contracts as follows:

I. APPLICABLE OBJECTS

The subjects to which these social insurance regulations apply are those workers going abroad on fixed-term contracts as stipulated in Decree No. 07/CP dated January 20, 1995 of the Government, including:

- Skilled workers (including experts) and unskilled workers;

- Graduates from vocational schools both within and outside the country;

- Workers employed in enterprises under various economic sectors, administrative and service units, and social organizations.

II. SOCIAL INSURANCE REGIME

1. Scope of Implementation.

Two social insurance schemes, retirement and death benefits, shall be applied according to the provisions of Section IV and Section V, Chapter II of the Social Insurance Regulations issued together with Decree No. 12/CP dated January 26, 1995 of the Government and Circular No. 06/LDTBXH dated April 4, 1995 of the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of Decree No. 12/CP of the Government.

2. Social Insurance Contributions:

a. Sources of Social Insurance Contributions:

During their entire time working abroad, workers must deduct a portion of their monthly salary to contribute to social insurance.

b. Monthly Social Insurance Contribution Rates for Workers:

+ For workers who have previously participated in mandatory social insurance in Vietnam, the contribution rate is 15% of the monthly salary they paid for social insurance before leaving the country, including: rank-based salary, position-based salary, contractual salary, differential retention coefficient, and allowances for position, region, and hardship (if applicable).

Example: A cadre serving as a ship captain, prior to going abroad on a fixed-term contract, had been contributing to social insurance in Vietnam at the rate specified in Decree No. 26/CP dated May 23, 1993 of the Government with a coefficient of 3.45 and a position allowance of 0.4. When working abroad, the calculation for social insurance contributions would be as follows:

- Salary based on coefficient: 3.45 x 144,000 VND = 496,800 VND

- Position allowance: 0.4 x 144,000 VND = 57,600 VND

Total = 554,400 VND/month

The monthly social insurance contribution amount is: 554,400 VND x 15% = 83,160 VND

+ For workers who have not participated in mandatory social insurance in Vietnam or who have worked and contributed to social insurance in Vietnam but whose work and social insurance contributions have already been settled, the monthly contribution rate is 15% of twice the minimum wage for state employees (currently 144,000 VND/month).

Example: A worker without employment, signed a contract to go abroad on a fixed-term contract, the monthly social insurance contribution during the period of working abroad is calculated as follows:

(144,000 VND/month x 2) x 15% = 43,200 VND/month.

+ The levels of social insurance contributions calculated based on salary or twice the minimum wage will be adjusted accordingly when there is a change in the minimum wage for state employees in Vietnam.

c. Method of Social Insurance Contributions:

+ Vietnamese economic organizations sending workers abroad are responsible for collecting social insurance contributions from workers and submitting them to the social insurance agency in Vietnam where the organization's headquarters is located, and must record this in the workers' social insurance books with confirmation from both the organization and the social insurance agency.

+ Social insurance contributions are made every six months. The first payment is due at the end of the sixth month from the start of the worker's employment abroad, subsequent payments are determined by the economic organization in accordance with the management conditions of labor. Workers must pay the full amount of social insurance contributions each month based on the total number of months worked abroad.

3. Rights to Social Insurance Benefits:

The time workers spend contributing to social insurance while abroad can be counted towards social insurance benefits. Specifically:

a. If workers return to Vietnam and meet the conditions for retirement benefits, they will be granted retirement benefits according to the Social Insurance Regulations issued together with Decree No. 12/CP of the Government and Circular No. 06/LDTBXH guiding the implementation of the Social Insurance Regulations.

b. If workers return to Vietnam and do not meet the conditions for retirement benefits as stipulated in Articles 25 and 26 of the Social Insurance Regulations, and do not continue working, they may receive a one-time allowance or wait until they meet the conditions for retirement benefits as stipulated in Article 28 of the Social Insurance Regulations.

c. If workers continue working and contributing to social insurance upon returning to Vietnam, the time spent contributing to social insurance abroad will be added to the time spent contributing to social insurance in Vietnam to determine social insurance benefits.

d. If workers die during their time working abroad and have contributed to social insurance, they will be granted death benefits according to the Social Insurance Regulations issued together with Decree No. 12/CP of the Government and Circular No. 06/LDTBXH guiding the implementation of the Social Insurance Regulations.

When settling retirement benefits, one-time allowances, or death benefits related to social insurance contributions made during the time workers were working abroad, the contributions will be calculated based on the salary paid for social insurance abroad as stipulated in Part b, Point 2, Item II of this Circular. These salary levels will be adjusted according to the minimum wage for state employees at the time of benefit settlement for workers.

III. IMPLEMENTATION

1. Vietnamese economic organizations sending workers abroad are responsible for confirming, managing files, and social insurance books of workers during their time working abroad.

The files managed by the economic organization are defined as follows:

a. For workers who have previously participated in social insurance in Vietnam, the following must be provided:

- Original file, clearly stating the work history with confirmation from the employing unit.

- The social insurance book shall clearly record the work history and social insurance contributions before going abroad.

- Decision or labor contract for working abroad for a limited period.

b. For workers who have not participated in social insurance contributions within the country, the economic organization shall be responsible for fully preparing the application dossier to request the Vietnam Social Security to issue a social insurance book and manage both the dossier and the social insurance book for the worker during their time working abroad.

In the event that the economic organization ceases operations after sending workers to work abroad, it must hand over all related social insurance dossiers managed by the organization to the social insurance agency where the organization pays social insurance contributions.

When workers return to the country, the economic organization shall be responsible for preparing the dossier to settle social insurance benefits for the workers or return the dossier and social insurance book to the workers so they can continue registering for social insurance contributions at other agencies or units.

2. The Vietnam Social Security shall be responsible for issuing social insurance books, organizing the collection of social insurance contributions from workers working abroad through economic organizations, and settling retirement benefits, lump-sum payments, or death benefits for workers according to the provisions of the Social Insurance Charter issued together with Decree No. 12/CP dated January 26, 1995 of the Government.

In cases where workers violate social insurance regulations, the resolution shall be based on the provisions of Chapter VI of the Social Insurance Charter issued together with Decree No. 12/CP dated January 26, 1995.

3. For individuals falling under the categories specified in Decree No. 370/HĐBT dated November 9, 1991 of the Council of Ministers (now the Government) and Decree No. 07/CP dated January 20, 1995 of the Government, if they have worked abroad and made social insurance contributions according to state regulations prior to the effective date of this Circular, the time spent working abroad with social insurance contributions shall be counted towards entitlement to retirement benefits, lump-sum payments, or death benefits according to the guidelines set out in this Circular.

Economic organizations shall be responsible for:

- Confirming the work period and social insurance contributions of those who have returned to the country for the Vietnam Social Security to have grounds for settling social insurance benefits.

- Processing the issuance of social insurance books, recording monthly social insurance contribution levels, and managing the social insurance books of workers.

IV. IMPLEMENTATION PROVISIONS

1. This Circular shall take effect 15 days after its signing date. Previous regulations contrary to this Circular shall be abolished.

2. Any difficulties encountered during implementation shall be reported to the Ministry of Labor - Invalids and Social Affairs for consideration and resolution.