Circular No. 20/2016/TT-BTC guiding the financial management mechanism for social insurance, health insurance, unemployment insurance, and management costs for social insurance, health insurance, and unemployment insurance.

 

CIRCULAR

Guidelines for implementing the financial management mechanism for social insurance, health insurance, unemployment insurance, and administrative expenses for social insurance, health insurance, and unemployment insurance,These guidelines are based on Decision No. 60/2015/QĐ-TTg dated November 27, 2015 of the Prime Minister regarding the financial management mechanism for social insurance, health insurance, unemployment insurance, and administrative expenses for social insurance, health insurance, and unemployment insurance;

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Grounds: Social Insurance Law dated November 20, 2014;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 13, 2013 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the request of the Director of the Department of Financial Affairs of Government Agencies and Public Institutions;

The Minister of Finance hereby issues this Circular to guide the implementation of the financial management mechanism for social insurance, health insurance, unemployment insurance, and administrative expenses for social insurance, health insurance, and unemployment insurance."b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."for the cause;

The Minister of Finance shall issue a Circular to guide the implementation of the financial management mechanism for social insurance, health insurance, unemployment insurance, and the costs of managing social insurance, health insurance, and unemployment insurance.i (330b)

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the implementation of the financial management mechanism for social insurance (hereinafter referred to as social insurance), health insurance, and unemployment insurance, and administrative expenses for social insurance, health insurance, and unemployment insurance.

Article 2. Applicability

1. Units under the Vietnam Social Security, the Social Security of the Ministry of National Defense, and the Social Security of the Ministry of Public Security.

Chapter II

FINANCIAL MANAGEMENT MECHANISM FOR SOCIAL INSURANCE, HEALTH INSURANCE, AND UNEMPLOYMENT INSURANCE

Article 3. Budget Preparation

1. Content of the budget:

a) The budget for income and expenditure of social insurance, health insurance, and unemployment insurance shall be detailed according to groups of participants and beneficiaries; the amounts of income and expenditure corresponding to each group according to the laws on social insurance, health insurance, and unemployment insurance (forms 01, 02, 03, and 04 issued together with this Circular);

b) The budget for administrative expenses of social insurance, health insurance, and unemployment insurance shall be detailed according to the actual tasks and expenditure levels prescribed by regulations (form 05 issued together with this Circular);

c) Investment plans from social insurance, health insurance, and unemployment insurance funds shall be detailed according to the provisions of the law on investment activities from these funds (the overall investment plan indicators according to form 06 issued together with this Circular).

2. Process of budget preparation:

a) Units under the Vietnam Social Security shall prepare the budget for income and expenditure according to points a and b of Clause 1 of this Article, and submit it to the Vietnam Social Security in accordance with the regulations of the General Director of the Vietnam Social Security;

b) The Social Security of the Ministry of National Defense and the Social Security of the Ministry of Public Security shall prepare the budget for income and expenditure within their respective ministries according to points a and b of Clause 1 of this Article, and submit it to the Vietnam Social Security;

3. The Vietnam Social Security shall be responsible for consolidating the budgets of the agencies specified in Clause 2 of this Article and the investment plans from the funds specified in point c of Clause 1 of this Article, and submitting them to the Management Council of the Vietnam Social Security for approval, and sending them to the Ministry of Finance, the Ministry of Labor, Invalids and Social Affairs, the Ministry of Health, and the Ministry of Planning and Investment (forms 01, 02, 03, 04, 05, and 06 issued together with this Circular).

4. For the budget of administrative expenses for social insurance, health insurance, and unemployment insurance, the total amount must not exceed the annual administrative expense limit prescribed in Clause 2 of Article 8 of Decision No. 60/2015/QĐ-TTg dated November 27, 2015 of the Prime Minister on the financial management mechanism for social insurance, health insurance, unemployment insurance, and administrative expenses for social insurance, health insurance, and unemployment insurance (hereinafter referred to as Decision No. 60/2015/QĐ-TTg). For the budget for development investment, a detailed list of investment projects must be attached in accordance with the laws on public investment and construction.

1. Based on the detailed budget estimate for state budget expenditure assigned by the competent authority, Vietnam Social Security shall allocate the detailed budget estimate according to the provisions set out in Clause 27 of Decree No. 115/2015/ND-CP dated November 11, 2015 of the Government detailing certain provisions of the Law on Social Insurance regarding mandatory social insurance, and submit it to the Ministry of Finance for review in accordance with the State Budget Law.

2. Before the 25th day of each month, the Ministry of Finance shall transfer from the central government budget a sum of money equal to the average monthly expenditure of the budget estimate assigned by the competent authority for the year (including payment expenses) into the social insurance fund so that Vietnam Social Security can make payments to beneficiaries in the following month.

3. After the approved annual settlement, if the amount transferred by the Ministry of Finance into the social insurance fund exceeds the actual settlement amount, Vietnam Social Security shall return the excess amount to the central government budget. In case the amount transferred by the Ministry of Finance into the social insurance fund is less than the actual settlement amount, the Ministry of Finance shall request the competent authority to supplement the shortfall amount for Vietnam Social Security.

Article 5. Method for determining late payment interest, evasion, misappropriation of contributions, and social insurance, health insurance, unemployment insurance benefits

1. In cases of delayed payment of social insurance, health insurance, and unemployment insurance, the monthly late payment interest shall be determined according to the following formula:

Where:

- (n) is the month for determining the late payment interest.

- (n-2) is the month immediately preceding two months of month (n).

- Late payment interest rate (%/month) is the average monthly interest rate announced by Vietnam Social Security at the beginning of the year in accordance with point c, Clause 3, Article 6 of Decision No. 60/2015/QĐ-TTg.

2. In cases of evasion, insufficient contribution for the number of persons required to participate, insufficient contribution amount as prescribed, lower contribution than the required level for the number of persons required to participate, misappropriation of contributions for social insurance, health insurance, and unemployment insurance (hereinafter referred to as evasion) discovered by the social insurance agency or the competent authority from January 1, 2016 onwards, in addition to recovering the required contribution amount, the late payment interest must also be recovered based on the amount, time of evasion, and the late payment interest rate as follows:

a) For the entire period of evasion before January 1, 2016, the interest rate applied shall be the late payment interest rate applicable in 2016.

b) For the period of evasion from January 1, 2016 onwards, the interest rate applied shall be the late payment interest rate applicable in each year and calculated according to the formula specified in Clause 1 of this Article.

Example 1: On January 20, 2016, the social insurance agency discovered that enterprise M had evaded social insurance contributions for 12 months (up to December 2015) for its employees, totaling 100 million VND; assuming the average monthly investment interest rate of the social insurance fund for 2015 announced by Vietnam Social Security was 0.7%/month:

- According to Clause 3, Article 122 of the 2014 Social Insurance Law, enterprise M, in addition to paying the contribution amount of 100 million VND, must also pay late payment interest of 16.8 million VND (100 million VND x 12 months x 2 x 0.7%/month).

- In January 2016, if enterprise M does not pay or pays insufficiently for the evaded amount, the unpaid amount will be carried over to February 2016 to calculate interest according to the formula specified in Clause 1 of this Article.

3. The total late payment interest for social insurance, health insurance, and unemployment insurance to be collected in a month includes the cumulative late payment interest carried over from the previous month and the late payment interest calculated on the newly incurred delayed payment amount in the current month, as stipulated in Clause 1 of this Article.

Example 2: By the end of December 2015, the delayed payment amount for social insurance of enterprise A was 700 million VND (of which: the cumulative delayed payment amount carried over from November was 600 million VND, and the newly incurred delayed payment amount in December was 100 million VND), and the late payment interest for social insurance was 50 million VND. Assuming the average monthly investment interest rate of the social insurance fund for 2015 was 0.7%/month. According to Clause 3, Article 122 of the 2014 Social Insurance Law, the determination of late payment interest for social insurance for enterprise A in January 2016 (month n) is as follows:

- In January 2016: Enterprise A, in addition to paying the cumulative delayed payment amount up to the end of November 2015 (month n-2) of 600 million VND, must also pay twice the average monthly investment interest rate of the social insurance fund for 2015 on the delayed payment amount of 600 million VND. The late payment interest due in January 2016 is 8.4 million VND (600 million VND x 2 x 0.7%).

- For the newly incurred delayed payment amount of 100 million VND in December 2015: If enterprise A pays fully in January 2016, no interest will be charged; if enterprise A does not pay or pays insufficiently, the unpaid amount will be carried over to the next month (February 2016) to calculate interest.

- The cumulative late payment interest for social insurance to be collected by enterprise A up to the end of January 2016 is 58.4 million VND, including: 50 million VND carried over from December 2015 and 8.4 million VND newly incurred in January 2016.

4. Monthly, the social insurance agency has the responsibility to send notification of social insurance, health insurance, and unemployment insurance payment results to employers in accordance with the guidelines of Vietnam Social Security, clearly stating the amount of delayed payment for social insurance, health insurance, and unemployment insurance and late payment interest (if any).

Article 6. Payment of pension, social insurance allowance, and unemployment benefit through a contract with an agency for payment

1. Monthly, the social insurance agency transfers money into the account of the agency for payment so that the agency for payment withdraws money from its own account and makes payments to beneficiaries according to the agreements stipulated in the signed contract.

2. The agency for payment is responsible for making correct, full, timely payments and ensuring the safety of cash during the payment process to beneficiaries.

3. During the implementation period of the payment contract, the social insurance agency has the responsibility to assign staff to inspect and supervise the payment process. The settlement of payment costs of the social insurance agency to the agency for payment shall be carried out in accordance with Clause 3, Article 8 of this Circular.

Article 7. Management and utilization of funds allocated for medical examination and treatment under health insurance that have not been fully utilized from January 1, 2015 to December 31, 2020

1. For the Vietnam Social Security:

b) Within one month from the date the Vietnam Social Security Management Board approves the annual settlement report of the health insurance fund, it must send a written notice to the Provincial People's Committee, simultaneously sending copies to the Department of Health and the Department of Finance to notify the 20% local usage amount; at the same time, transfer the entire portion of these funds to the provincial social security for use according to the decision of the Provincial People's Committee;

c) Summarize the amount of funds used in accordance with Clauses 3 and 4 of this Article into the annual settlement of the health insurance fund.

2. For the Department of Health:

a) Based on the notification from the Vietnam Social Security regarding the amount of unused funds allocated for medical examination and treatment under health insurance to be used locally, the Department of Health takes the lead and coordinates with the Department of Finance and the provincial social security to develop a plan for utilization in accordance with the priority order specified in point a, Clause 3, Article 35 of the amended Health Insurance Law, submit it for approval by the Provincial People's Committee and report to the Provincial People's Council;

b) Take the lead and coordinate with the provincial social security to inspect the management and utilization of funds for purchasing medical equipment and patient transportation vehicles at units.

3. For the provincial social security:

a) Upon receiving the approval decision of the Chairman of the Provincial People's Committee, implement as follows:

- In the case of supporting the Medical Examination and Treatment Fund for the Poor: Transfer the funds into the account of the Medical Examination and Treatment Fund for the Poor for management and utilization in accordance with Circular Joint No. 33/2013/TTLT-BYT-BTC dated October 18, 2013 of the Ministry of Health and the Ministry of Finance guiding the implementation of Decision No. 14/2012/QD-TTg dated March 1, 2012 of the Prime Minister amending and supplementing some articles of Decision No. 139/2002/QD-TTg dated October 15, 2002 of the Prime Minister on medical examination and treatment for the poor; at the same time, summarize the transferred funds into the annual settlement of the provincial health insurance fund (details of the 20% local usage amount);

- In the case of supporting health insurance contributions for certain groups: Based on the list of supported individuals and the amount of support, prepare accounting vouchers recording the receipt of health insurance contributions, and at the same time, settle the annual expenditure of the provincial health insurance fund (details of the 20% local usage amount);

- In the case of purchasing medical equipment and patient transportation vehicles at the district level: Transfer the funds into the bank account of the unit allocated the funds according to the procurement schedule stipulated by the law on bidding; after completing the settlement, summarize into the annual settlement of the provincial health insurance fund (details of the 20% local usage amount).

b) Coordinate with the Department of Health to inspect the use of funds at units allocated the funds, ensuring compliance with the purpose, transparency, and clarity;

c) Within twelve months from the date recorded in the notification from the Vietnam Social Security as stipulated in point b, Clause 1 of this Article, the portion of funds left unused or not fully utilized at the local level, the provincial social security is responsible for recovering and transferring back to the Vietnam Social Security to be deposited into the reserve fund.

4. For the Social Security of the Ministry of National Defense and the Ministry of Public Security:

In the case where the health insurance medical examination and treatment fund for military personnel, public security officers, and civil servants exceeds the cost of medical examination and treatment and transportation expenses in the year: After the Vietnam Social Security Management Board approves the annual settlement report of the Vietnam Social Security, the unused funds will be used in accordance with Clause 2, Article 21 of Decree No. 70/2015/ND-CP dated September 1, 2015 of the Government detailing and guiding the implementation of certain provisions of the Health Insurance Law for the People's Army, the Public Security Force, and civil servants; summarize into the annual settlement of health insurance medical examination and treatment expenses of the Social Security of the Ministry of National Defense and the Ministry of Public Security.

5. Units allocated funds for purchasing medical equipment and patient transportation vehicles are responsible for:

a) Managing and utilizing funds in accordance with the law on asset procurement and recording them in other sources of funds of the unit in accordance with the State Budget Law and related guiding documents;

b) Settling accounts with the provincial social security for the allocated funds; separately, units under the management of the Ministry of National Defense and the Ministry of Public Security settle accounts with the Social Security of the Ministry of National Defense and the Social Security of the Ministry of Public Security.

Chapter III

SOCIAL INSURANCE MANAGEMENT COSTS, HEALTH INSURANCE COSTS, UNEMPLOYMENT INSURANCE COSTS

Article 8. Management costs for the Vietnam Social Security

a) The average collection cost across the entire industry is 7% of the amount contributed by participants; the Vietnam Social Security shall implement as follows:

- Allocate 75% of the average collection cost across the entire industry to pay remuneration fees to organizations acting as collection agents. Based on the actual situation of each locality, the General Director of the Vietnam Social Security shall be responsible for setting the percentage of remuneration fees based on the amount collected for each group of participants and each province/city for provincial social security agencies to settle with collection agents;

- The remaining 25% of the average collection cost across the entire industry is retained by the social security sector for use in training and supervising collection activities. The Vietnam Social Security allocates this to provincial social security agencies and related units to organize implementation.

b) The social security agency bases the payment of remuneration fees to collection agents on the amount and list of participants submitted by the agents; the amount paid corresponds to the percentage of remuneration fees set by the General Director of the Vietnam Social Security.

c) The social security agency has the responsibility to provide forms for organizations acting as collection agents to print and use for compiling lists of participants.

a) The average cost for paying pensions, social insurance allowances, and unemployment benefits (payment cost) across the entire industry is 0.78% of the total amount paid for these benefits; the Vietnam Social Security shall implement as follows:

- Allocate 63% of the average payment cost across the entire industry to the organization acting as a payment agent for the purposes specified in Point c of this Clause. The General Director of the Vietnam Social Security shall be responsible for setting the payment cost percentage based on the amount paid for each province/city for provincial social security agencies to settle with payment agents.

- The remaining 37% of the average payment cost across the entire industry is retained by the social security sector for use in payment activities (including: printing forms, pension receipt vouchers, payment lists; storing and archiving beneficiary files; monitoring and supervising payment activities; overtime work; supporting civil servants, officials, and employees involved in payment days). The Vietnam Social Security allocates this to provincial social security agencies and related units to organize implementation.

b) The social security agency transfers the payment cost to the account of the organization acting as a payment agent based on the amount paid to beneficiaries by the payment agent; the amount transferred corresponds to the percentage of payment cost set by the General Director of the Vietnam Social Security.

c) The organization acting as a payment agent decides and is responsible for using the payment cost for the following purposes: purchasing safes, counting machines, money bags, number generators (if applicable); renting transportation means, payment locations, security personnel; transfer fees, cash withdrawal fees, service charges for transferring funds into beneficiary accounts; ATM card issuance fees for beneficiaries requiring bank payments; payment remuneration fees; water expenses at payment points and managing beneficiaries in the area; other expenses.

4. The method for supplementing income for cadres, civil servants, officials, and employees from the supplementary income fund as prescribed in Point b, Clause 1, Article 10 of Decision No. 60/2015/QĐ-TTg:

a) The social security agency supplements income monthly or quarterly for civil servants, officials, and employees up to a maximum of 60% of the actual average supplementary income level of the previous year. For the year 2016, the monthly or quarterly supplementary income for civil servants, officials, and employees is decided by the head of the unit but not exceeding 60% of the monthly or quarterly salary fund for that year.

b) After the annual settlement is approved, the social security agency determines the savings in management costs and the portion reserved for establishing the supplementary income fund according to the internal expenditure regulations of the sector to settle and supplement income for civil servants, officials, and employees according to the principle:

- If the savings reserved for establishing the supplementary income fund exceeds the amount already supplemented for civil servants, officials, and employees, the social security agency continues to supplement income for them according to the internal expenditure regulations of the sector;

- If the savings reserved for establishing the supplementary income fund is less than the amount already supplemented for civil servants, officials, and employees, the social security agency uses the supplementary income reserve fund to make up the difference. If the supplementary income fund is insufficient, it will be deducted from the savings reserved for establishing the supplementary income fund of the next year.

Article 9. Management costs for the Social Insurance of the Ministry of National Defense and the Ministry of Public Security

1. Content of expenditure:

d) Costs for transferring funds to the State Treasury and commercial banks;

đ) Costs for printing and photocopying documents, forms, notifications, reports;

e) Medical uniforms for health insurance appraisers working at healthcare facilities, at a rate of two sets per person per year, as prescribed by the Ministry of Health;

g) Telephone call fee subsidies for certain positions and roles within the Social Insurance of the Ministry of National Defense and the Ministry of Public Security, outside the scope of fixed-line phones provided at home and mobile phones provided according to the law, with a maximum of 250,000 VND per person per month. Specific subsidy levels and eligible recipients are decided by the Director of the Social Insurance of the Ministry of National Defense and the Director of the Social Insurance of the Ministry of Public Security within the scope of available management costs;

h) Subsidies for central units under the Ministry of National Defense and the Ministry of Public Security in coordinating and implementing social insurance, health insurance, and unemployment insurance policies and systems within their respective ministries: The specific annual subsidy levels are proposed by the Directors of the Social Insurance of the Ministry of National Defense and the Ministry of Public Security for approval by the Ministers of National Defense and Public Security within the scope of available management costs;

Supported units manage and utilize funds according to current financial expenditure regulations; at the end of the fiscal year, these units are responsible for settling accounts with the Social Insurance of the Ministry of National Defense and the Ministry of Public Security; expenditure vouchers are kept at the unit using the funds;

i) Costs for activities coordinating the collection and payment of social insurance, health insurance, and unemployment insurance benefits, including travel expenses, night shift allowances, overtime pay, fuel costs, or rental of vehicles;

k) Regular costs for contractual laborers hired by the Directors of the Social Insurance of the Ministry of National Defense and the Ministry of Public Security in accordance with the law (if applicable), including salary, wage supplements, contributions based on wages; administrative management costs;

l) Irregular costs, including:

- Basic scientific research costs: Implemented according to the legal regulations on expenditure for scientific and technological tasks;

- Training and professional development costs for civil servants and public officials according to the national program: Content and expenditure levels follow the legal regulations on managing and utilizing training and professional development funds for civil servants and public officials;

- Rental costs; costs for executing contracts for work outsourcing or labor contracts as stipulated by the labor law for tasks that do not require regular staffing;

- Costs for overseas study and experience exchange, and hosting foreign guests to work in Vietnam on implementing social insurance and health insurance policies in the military, police, and confidential services, as decided by authorized bodies: Content and expenditure levels follow the legal regulations on travel expenses for civil servants and public officials traveling abroad for short-term missions funded by the state budget, reception expenses for foreign guests working in Vietnam, expenses for organizing international conferences and seminars in Vietnam, and domestic hospitality expenses;

- Other expenses as prescribed by law.

a) Establishment of a supplementary income fund not exceeding one times the total of rank-based salaries, grade-based salaries, position-based salaries, and allowances (excluding night shift and overtime allowances) of cadres, civil servants, public officials, and contractual workers in the unit to supplement income for cadres, civil servants, public officials, and workers in the year and to reserve for supplementary income in the following year. Supplementary income payments must be linked to individual performance and results and implemented according to Clause 4 of Article 8 of this Circular;

b) Establishment of a reward and welfare fund not exceeding three months' salary and actual income of cadres, civil servants, public officials, and contractual workers in the unit to be used for the purposes specified in Point c of Clause 1 of Article 10 of Decision No. 60/2015/QĐ-TTg.

3. At the end of the fiscal year, the Social Insurance of the Ministry of National Defense and the Ministry of Public Security are responsible for settling accounts for management costs provided by the Vietnam Social Security and consolidating them in the annual report on social insurance, health insurance, and unemployment insurance revenue and expenditure, to be submitted to the Vietnam Social Security before May 31 each year.

4. The Social Insurance of the Ministry of National Defense and the Social Insurance of the Ministry of Public Security shall be responsible for establishing internal expenditure regulations based on the content and expenditure levels stipulated in this Article and applying the current financial expenditure regime suitable to the activities of their units, to be submitted to the General Director of the Vietnam Social Security for issuance and implementation.

1. Content and Level of Expenditure:

a) Expenditure on propaganda, dissemination of policies and laws on unemployment insurance; training and professional development on unemployment insurance; administrative reform on unemployment insurance; expenditure on purchasing modern management systems: Implemented according to the relevant expenditure contents prescribed in Clauses 1, 2, 3, 8, and 11 of Article 9 of Decision No. 60/2015/QĐ-TTg;

b) Expenditure on printing, photocopying documents, forms, notifications, reports;

c) Expenditure on preserving and storing documents related to unemployment insurance;

d) Support expenditure for labor, war invalids, and social affairs agencies, and related agencies in handling unemployment insurance benefits, inspection, and supervision, and other tasks related to unemployment insurance. Specific support levels are determined by the head of the unit within the scope of available management expenditure;

đ) For civil servants and employees who regularly need to inspect and verify unemployment registration files at residential areas using their own means of transportation and not covered under travel expense reimbursement regulations, they shall be supported through a fixed allowance for self-provisioned means of transportation (including fuel costs, vehicle depreciation, and parking fees) up to a maximum of one times the base salary per person per month. Specific allowances are determined by the head of the unit within the scope of available management expenditure;

e) Expenditure on transferring unemployment insurance management costs to the State Treasury and commercial banks;

g) Expenditure on coordinating inspections and supervising the handling of unemployment insurance benefits and related tasks: Supporting coordination work, travel expenses, night shifts, overtime, fuel costs, or rental fees for vehicles serving inspection and supervision tasks;

h) Regular expenditure for the operation of the machinery of the business department responsible for unemployment insurance according to the internal expenditure regulations of the unit, including: Salary expenditure, salary supplements, contributions linked to salary; administrative management expenditure;

i) Irregular expenditure, including:

- Basic scientific research costs: Implemented according to the legal regulations on expenditure for scientific and technological tasks;

- Training and professional development costs for civil servants and public officials according to the national program: Content and expenditure levels follow the legal regulations on managing and utilizing training and professional development funds for civil servants and public officials;

- Rental costs; costs for executing contracts for work outsourcing or labor contracts as stipulated by the labor law for tasks that do not require regular staffing;

- Expenditure on studying and exchanging experiences abroad and hosting foreign guests working in Vietnam on implementing unemployment insurance policy, as decided by the competent authority;

- Other expenses as prescribed by law.

2. Management and Use of Funds:

a) Based on the budget allocated, units manage and utilize funds to perform tasks assigned by the Minister of Labor, Invalids, and Social Affairs and according to the expenditure content stipulated in Clause 1 of this Article;

b) Upon receiving funds from the Ministry of Labor, Invalids, and Social Affairs, including the portion of funds for salaries of workers implementing unemployment insurance policy at 1.8 times the salary regime for state officials (if applicable), it shall be recorded as income of the unit's public service fund and autonomously utilized according to the legal provisions on the autonomous mechanism of public service institutions and the internal expenditure regulations of the unit;

c) At the end of the fiscal year, units are responsible for preparing and submitting annual settlement reports according to the Accounting System for Administrative and Public Institutions, to be sent to the Ministry of Labor, Invalids, and Social Affairs before March 31 each year for review and consolidation with the Vietnam Social Security;

a) Budget allocation: Within fifteen days from the date of receipt of the document allocating unemployment insurance management costs from the Vietnam Social Security, the Ministry of Labor, Invalids, and Social Affairs shall complete the allocation and assignment of budgets and publicly disclose the budget allocation standards for units according to current regulations;

b) Transfer of funds: Based on the amount provided by the Vietnam Social Security to transfer into the accounts of the units as stipulated in Clause 3 of Article 8 of Decree No. 28/2015/NĐ-CP dated March 12, 2015 of the Government detailing the implementation of certain provisions of the Law on Employment regarding unemployment insurance;

c) Annual settlement consolidation: The Ministry of Labor, Invalids, and Social Affairs is responsible for reviewing and notifying the results of annual settlements on unemployment insurance management costs of units; consolidating and preparing annual settlement reports according to the current Accounting System for Administrative and Public Institutions, to be sent to the Vietnam Social Security before May 31 each year;

Chapter IV

IMPLEMENTING PROVISIONS

Article 11. Transitional Provisions

1. Regarding the surplus or shortage of local government budget support for the unemployment insurance fund as stipulated in Circular No. 96/2009/TT-BTC dated May 20, 2009 of the Ministry of Finance guiding the financial system for the unemployment insurance fund until the end of 2014, the following measures shall be taken:

a) In cases where the amount allocated by the Department of Finance exceeds the required support amount, the Vietnam Social Security shall transfer the excess from the unemployment insurance fund back to the provincial social security for repayment to the local government budget;

b) In cases where the amount allocated by the Department of Finance is less than the required support amount, the provincial social security shall aggregate the shortfall and submit it to the Department of Finance for approval by the competent authority to supplement the unemployment insurance fund;

2. As for overdue unemployment insurance payments by employers as of the end of 2014 (if any), the social insurance agency shall require employers to pay the full amount as stipulated; the state budget will not support the unemployment insurance fund in such cases. From 2015 onwards, state budget support for the unemployment insurance fund shall be implemented according to Article 7 of Decree No. 28/2015/NĐ-CP dated March 12, 2015 of the Government detailing the implementation of certain provisions of the Law on Employment regarding unemployment insurance, and shall be guaranteed by the central government budget.

3. For provincial social insurance agencies that have not yet completed the reform of payment methods for pensions, social insurance allowances, and monthly unemployment benefits through state public service organizations in accordance with Point 3, Section III, Article 1 of Decision No. 1215/QD-TTg dated July 23, 2013, approving the Strategy for the Development of the Social Insurance Sector in Vietnam until 2020 issued by the Prime Minister, they shall continue to implement the current payment method. By the end of 2016 at the latest, they must complete the transition to the payment method through state public service organizations as directed by the Vietnam Social Security to ensure uniformity, professionalism, and security in payments.

Article 12. Effective Date

1. This Circular takes effect from March 20, 2016, and applies from the 2016 budget year.

2. Circular No. 134/2011/TT-BTC dated September 30, 2011, of the Ministry of Finance detailing and guiding the implementation of certain provisions of Decision No. 04/2011/QD-TTg dated January 20, 2011, of the Prime Minister on financial management for the Vietnam Social Security, and Circular No. 96/2009/TT-BTC dated May 20, 2009, of the Ministry of Finance guiding the financial regime for the unemployment insurance fund, cease to be effective from the date this Circular takes effect.

Article 13. Implementation Organization

Agencies and units specified in this Circular and related organizations, individuals are responsible for implementing this Circular.

Any difficulties encountered during implementation should be promptly reported to the Ministry of Finance for consideration and resolution./.