Circular No. 23/2016/TT-BLDTBXH guiding the adjustment of pension and social insurance benefits and monthly allowances according to Decree No. 55/2016/NĐ-CP dated June 15, 2016 of the Government.

CIRCULAR

Guidelines for adjusting pensions, social insurance benefits, and monthly allowances, and the time of receiving pensions for cases without original records

and monthly allowances pursuant to Decree No. 55/2016/NĐ-CP

dated June 15, 2016 of the Government

Pursuant to Decree No. 106/2012/NĐ-CP dated December 20, 2012 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor, Invalids and Social Affairs;

Pursuant to Decree No. 55/2016/NĐ-CP dated June 15, 2016 of the Government adjusting the pension levels, allowances for loss of working capacity, monthly allowances, and allowances for kindergarten teachers with time of service before 1995 (hereinafter referred to as Decree No. 55/2016/NĐ-CP);

The Minister of Labor - Invalids and Social Affairs issues this Circular guiding the adjustment of pensions, social insurance benefits, and monthly allowances for the subjects specified in Clauses 1, 2, 3, and Clause 8 of Article 1 of Decree No. 44/2019/NĐ-CP dated May 20, 2019 of the Government

The Minister of Labor, Invalids and Social Affairs issues this Circular guiding the adjustment of pension levels, social insurance allowances, and monthly allowances pursuant to Decree No. 55/2016/NĐ-CP dated June 15, 2016 of the Government.

Article 1. Scope of application

1. The subjects specified in Points a and b Clause 1 Article 2 of Decree No. 55/2016/NĐ-CP who began receiving pensions and monthly allowances during the period from January 1, 2015 to before May 1, 2016.

2. The subjects specified in Points a, b, and c Clause 1 Article 2 of Decree No. 55/2016/NĐ-CP who were receiving pensions, allowances for loss of working capacity, and monthly allowances before January 1, 2016, and those who began receiving pensions and monthly allowances during the period from January 1, 2016 to December 31, 2016 with a pension level or allowance below 2,000,000 VND/month.

3. Kindergarten teachers with time of service in preschool education institutions before January 1, 1995 whose pension levels are lower than the minimum wage.

Article 2. Adjustment of the amount of benefit for those who begin receiving pensions and monthly allowances during the period from January 1, 2015 to before May 1, 2016.

1. Increase the pension and monthly allowance by 8% for the subjects specified in Clause 1 Article 1 of this Circular. Specifically: 

2. The adjustment date shall be calculated from the month when the pension and monthly allowance are first received. 

Example 1: Mr. A began receiving a pension on January 1, 2015, with a pension amount of 5,200,000 VND/month at the time of January 2015. 

Mr. A's new pension amount after adjustment is:

5,200,000 VND/month x 1.08 = 5,616,000 VND/month

The date of receipt of the new pension amount mentioned above for Mr. A is calculated from January 2015. 

Example 2: Ms. B began receiving a pension on March 1, 2016, with a pension amount of 4,800,000 VND/month at the time of March 2016. 

Ms. B's new pension amount after adjustment is:

4,800,000 VND/month x 1.08 = 5,184,000 VND/month

The date of receipt of the new pension amount mentioned above for Ms. B is calculated from March 2016.

Article 3. Adjustment of the amount of benefit for those with a pension or monthly allowance below 2,000,000 VND/month

1. The subjects specified in Clause 2 Article 1 of this Circular, including those who have been adjusted according to the provisions of Article 2 of this Circular, if their pension or monthly allowance is less than 2,000,000 VND/month, then the amount of benefit will be adjusted as follows:

a) For those with a pension of 1,750,000 VND/month or less:

b) For those with a pension between 1,750,000 VND/month and 2,000,000 VND/month: 

c) For those with an allowance for loss of working capacity or monthly allowance of 1,850,000 VND/month or less: 

d) For those with an allowance for loss of working capacity or monthly allowance between 1,850,000 VND/month and 2,000,000 VND/month:

2,000,000 VND/month

2. The adjustment date shall be calculated from January 2016 for those currently receiving pensions, allowances for loss of working capacity, or monthly allowances before January 1, 2016, and from the month they start receiving pensions or monthly allowances for those starting to receive them during the period from January 1, 2016 to December 31, 2016.

Example 3: Mr. C began receiving a pension on January 1, 2016, with a pension amount of 1,600,000 VND/month at the time of January 2016.

- Mr. C falls under the category of adjustment increasing by 8% as stipulated in Article 2 of this Circular, his pension amount after the 8% increase is:

1,600,000 VND/month x 1.08 = 1,728,000 VND/month

- Since Mr. C's pension amount is less than 1,750,000 VND/month, he falls under the category of further adjustment increasing by 250,000 VND/month as stipulated in Point a Clause 1 Article 3 of this Circular. His pension amount after adjustment is:

1,728,000 VND/month + 250,000 VND/month = 1,978,000 VND/month

The date of receipt of the pension amount mentioned above for Mr. C is calculated from January 2016.

Example 4: Ms. D receives a monthly allowance for loss of working capacity with an amount of 1,860,000 VND at the time of December 2015. Since Ms. D's allowance for loss of working capacity is within the range of 1,850,000 VND/month to 2,000,000 VND/month, she falls under the category of adjustment of the allowance as stipulated in Point d Clause 1 Article 3 of this Circular.

Article 4. Adjustment of the benefit level for kindergarten teachers whose pension is lower than the minimum wage.

1. Kindergarten teachers who fall under the category specified in Clause 3, Article 1 of this Circular, having worked at a kindergarten before January 1, 1995, and currently receiving a pension before January 1, 2016, or starting to receive a pension during the period from January 1, 2016 to December 31, 2016, if their pension, after adjustment according to Articles 2 and 3 of this Circular, is less than 1,150,000 VND, shall be adjusted to 1,150,000 VND/month applicable from January 1, 2016 to April 30, 2016; if it is less than 1,210,000 VND, shall be adjusted to 1,210,000 VND/month applicable from May 1, 2016 onwards.

2. Adjustment time points:

a) From January 1, 2016 for those currently receiving a pension before January 1, 2016, and from May 1, 2016 for those currently receiving a pension before May 1, 2016.

b) From the month they start receiving a pension for those beginning to receive a pension during the period from January 1, 2016 to December 31, 2016.

Example 5: Ms. E is a kindergarten teacher with work experience in a kindergarten before January 1, 1995, started receiving a pension from March 1, 2015, with a pension amount of 800,000 VND/month in March 2015.

- Ms. E falls under the category of an 8% increase adjustment as stipulated in Article 2 of this Circular, her pension after the 8% increase adjustment is:

800,000 VND/month x 1.08 = 864,000 VND/month

- Since Ms. E's pension is lower than 1,750,000 VND/month, she qualifies for an additional increase of 250,000 VND/month as stipulated in Point a, Clause 1, Article 3 of this Circular. Her pension after the additional increase of 250,000 VND is:

864,000 VND/month + 250,000 VND/month = 1,114,000 VND/month

- As Ms. E's pension on January 1, 2016 was lower than 1,150,000 VND/month, she qualifies for an adjustment to 1,150,000 VND/month; on May 1, 2016, it was lower than 1,210,000 VND/month, so she qualifies for an adjustment to 1,210,000 VND/month as stipulated in Clause 1, Article 4 of this Circular.

Therefore, Ms. E's pension benefit levels for each period are as follows:

+ From March 2015 to December 2015 is 864,000 VND/month;

+ From January 2016 to April 2016 is 1,150,000 VND/month;

+ From May 2016 to December 2016 is 1,210,000 VND/month.

State-owned enterprises that have been assigned by the Ministry of Agriculture and Rural Development to conduct offshore wind power project surveys before the effective date of this Circular shall continue to implement according to the assigned documents; any new matters arising after the effective date of this Circular shall be implemented in accordance with the provisions of this Circular.

1. The People's Committees of provinces and centrally-administered cities are responsible for directing the Department of Labor, Invalids, and Social Affairs and relevant agencies to inspect and urge the implementation of the provisions of this Circular.

2. The Vietnam Social Security is responsible for implementing the adjustment of pensions, disability allowances, and monthly allowances as prescribed in Decree No. 55/2016/NĐ-CP and guided in this Circular; prepare reports according to the model attached to this Circular and submit them to the Ministry of Labor, Invalids, and Social Affairs and the Ministry of Finance before January 15, 2017.

Article 6. Effectiveness

This Circular takes effect from September 1, 2016.

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