Circular No. 24/2020/TT-BTC amends and supplements certain provisions of Circular No. 20/2016/TT-BTC dated February 3, 2016, issued by the Ministry of Finance guiding the implementation of financial mechanisms for social insurance, health insurance, unemployment insurance, and management costs for social insurance, health insurance, and unemployment insurance.

 CIRCULAR

Amending and supplementing some articles of Circular No. 20/2016/TT-BTC dated February 3, 2016 of the Ministry of Finance guiding the implementation of the financial management mechanism for social insurance, health insurance, unemployment insurance, and management costs for social insurance, health insurance, and unemployment insurance.

03/02/2016 of the Ministry of Finance guiding the implementation of the management mechanism for social insurance funds, health insurance funds, unemployment insurance funds, and management costs for social insurance, health insurance, and unemployment insurance

concerning social insurance, health insurance, unemployment insurance, and management costs for social insurance, health insurance, and unemployment insurance

regarding the management costs for social insurance, health insurance, and unemployment insurance

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Pursuant to the Social Insurance Law on November 20, 2014;

Pursuant to the Labor Law on November 16, 2013;

Pursuant to the Occupational Safety and Health Law on June 25, 2015;

Pursuant to the Health Insurance Law on November 14, 2008 and the Law Amending and Supplementing Certain Articles of the Health Insurance Law on June 13, 2014;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 60/2015/QD-TTg dated November 27, 2015 of the Prime Minister on the financial management mechanism for social insurance, health insurance, unemployment insurance, and management costs for social insurance, health insurance, and unemployment insurance (hereinafter referred to as Decision No. 60/2015/QD-TTg);

Pursuant to Decision No. 38/2019/QD-TTg dated December 31, 2019 of the Prime Minister amending and supplementing certain articles of Decision No. 60/2015/QD-TTg dated November 27, 2015 of the Prime Minister on the financial management mechanism for social insurance, health insurance, unemployment insurance, and management costs for social insurance, health insurance, and unemployment insurance (hereinafter referred to as Decision No. 38/2019/QD-TTg);

At the proposal of the Director of the Department of Administrative and Public Financial Affairs;

The Minister of Finance hereby issues this Circular amending and supplementing some articles of Circular No. 20/2016/TT-BTC dated February 3, 2016 of the Ministry of Finance guiding the implementation of the financial management mechanism for social insurance, health insurance, unemployment insurance, and management costs for social insurance, health insurance, and unemployment insurance.

Article 1. Amending and supplementing some articles of Circular No. 20/2016/TT-BTC as follows:

1. Amending Clause 2 and Clause 3 of Article 2 as follows:

“2. Provincial Employment Service Centers under the provincial and central city People's Committees, organizations implementing unemployment insurance directly under the Ministry of Labor, Invalids and Social Affairs shall implement the unemployment insurance policy (hereinafter collectively referred to as unemployment insurance organizations); agencies and organizations under the Ministry of Labor, Invalids and Social Affairs shall organize the implementation of tasks related to receiving applications, processing benefits for work-related injury and occupational disease, and other tasks related to the management and use of the work-related injury and occupational disease insurance fund,

3. Agencies, organizations, and individuals related to the financial management mechanism for social insurance (including work-related injury and occupational disease insurance), health insurance, unemployment insurance, and management costs for social insurance (hereinafter abbreviated as BHXH), health insurance, and unemployment insurance.”

2. Amending Point c Clause 2 of Article 3 as follows:

“c) The Ministry of Labor, Invalids and Social Affairs shall prepare the budget estimate for expenditures on unemployment insurance benefits, work-related injury and occupational disease insurance benefits (hereinafter abbreviated as BH TNLĐ, BNN) and management costs for unemployment insurance, work-related injury insurance, and occupational disease insurance according to the provisions of Points a and b Clause 1 of this Article, and send it to the Vietnam Social Security (Form No. 02, 04, and 05 issued together with this Circular).”

3. Amending Article 4 as follows:

"Article 4. Allocation, transfer of budget estimates, and funds

1. Regarding the allocation of budget estimates and fund transfers for pension and social insurance benefit payments from the state budget to ensure:

a) Based on the state budget estimate allocated by the competent authority, the Vietnam Social Security shall allocate detailed estimates according to the regulations stipulated in Article 27 of Decree No. 115/2015/ND-CP dated November 11, 2015 of the Government detailing certain provisions of the Social Insurance Law on mandatory social insurance, and submit it to the Ministry of Finance for review in accordance with the State Budget Law;

b) Before the 25th day of each month, the Ministry of Finance shall transfer from the central budget a sum of money equal to the average monthly expenditure of the annual budget estimate allocated by the competent authority (including payment costs) into the social insurance fund so that the Vietnam Social Security can make payments to beneficiaries in the following month;

c) After the approved annual settlement, if the amount of funds transferred by the Ministry of Finance into the social insurance fund exceeds the settlement amount, the Vietnam Social Security shall return the excess to the central budget. In case the amount of funds transferred by the Ministry of Finance into the social insurance fund is less than the settlement amount, the Ministry of Finance shall request the competent authority to provide additional funding to the Vietnam Social Security.

2. Regarding the allocation and transfer of management costs for unemployment insurance, work-related injury and occupational disease insurance: Within 15 working days from the date of receipt of the decision allocating the budget estimate by the Prime Minister, the Ministry of Labor, Invalids and Social Affairs shall complete the allocation and transfer of the management cost budget estimate for unemployment insurance to the Employment Service Bureau and employment service centers under the provincial and municipal Labor, Invalids and Social Affairs Departments; management costs for work-related injury and occupational disease insurance to the Occupational Safety and Health Bureau and provincial Labor, Invalids and Social Affairs Departments.

3. Transfer of funds for benefit payments and management costs for social insurance, health insurance, unemployment insurance, work-related injury and occupational disease insurance to the Social Security of the Ministry of National Defense, the Social Security of the Ministry of Public Security, and the Ministry of Labor, Invalids and Social Affairs:

a) Before the 25th day of each month, the Vietnam Social Security shall transfer funds for benefit payments for social insurance, unemployment insurance, work-related injury and occupational disease insurance equal to the average monthly expenditure of the annual budget estimate allocated by the competent authority for the Ministry of National Defense Social Security and the Ministry of Public Security Social Security to make payments to beneficiaries in the following month. In case the monthly expenditure changes, the Ministry of National Defense Social Security and the Ministry of Public Security Social Security shall issue a letter to the Vietnam Social Security to promptly transfer funds for benefit payments. The transfer of funds for medical examination and treatment expenses under health insurance shall be carried out in accordance with the Health Insurance Law;

b) Regularly before the 10th day of the first month of each quarter, the Vietnam Social Security shall transfer management costs for the Ministry of National Defense Social Security, the Ministry of Public Security Social Security, and the Ministry of Labor, Invalids and Social Affairs (Employment Service Bureau, Occupational Safety and Health Bureau) equal to the quarterly average of the allocated budget estimate. The transfer of funds for information technology application shall be carried out in accordance with the Government's Decree No. 64/2007/ND-CP dated April 10, 2007 on the application of information technology in the activities of state agencies;

c) In case the time for transferring funds for social insurance, health insurance, unemployment insurance benefits and management costs to units as prescribed has arrived but there is no approved budget from the competent authority, the Vietnam Social Security shall temporarily allocate funds as follows: Management costs equal the average monthly cost of the previous year's approved budget; social insurance and unemployment insurance costs ensure sufficient funds to pay social insurance and unemployment insurance benefits according to actual needs; the temporary advance for medical examination and treatment expenses under health insurance shall be in accordance with the provisions of Article 35, Clause 3, Point a of the Health Insurance Law 2008 as amended in 2014 (hereinafter referred to as the 20% available for local use).

4. Amend Point a, Clause 1, Article 7 as follows:

“a) When auditing the annual settlement of the medical examination and treatment fund of the provincial-level Social Security, it shall record clearly in the audit report that 20% of the unused health insurance examination and treatment funds (if any) can be used locally in accordance with Point a, Clause 3, Article 35 of the Health Insurance Law 2008 as amended in 2014 (hereinafter referred to as the 20% available for local use);”

5. Amend Clause 1 and Clause 2, Article 8 as follows:

“1. Based on the content and management cost levels stipulated in Articles 9 and 10 of Decision No. 60/2015/QĐ-TTg as amended and supplemented by Clauses 9 and 10, Article 1 of Decision No. 38/2019/QĐ-TTg, the General Director of the Vietnam Social Security shall establish and promulgate internal expenditure regulations for subordinate units of the Vietnam Social Security based on national standards, norms, and policies to organize implementation.”

2. The method for allocating the collection costs of voluntary social insurance contributions, health insurance contributions of household members, and students currently studying at educational institutions within the national education system (collection costs) as prescribed in Point b, Clause 9, Article 1 of Decision No. 38/2019/QĐ-TTg:

a) The average collection cost rate across the industry equals 7.5% of the amount contributed by participants; the Vietnam Social Security shall implement as follows:

- The remuneration rate for organizations acting as collection agents as stipulated in Point b, Clause 9, Article 1 of Decision No. 38/2019/QĐ-TTg. The General Director of the Vietnam Social Security shall determine specific remuneration rates for each group of participants (first-time participants, continuing participants) and for each province and centrally-administered city in accordance with actual conditions and within the permissible range.

- Remaining collection costs after deducting remuneration for collection agents shall be retained by the Social Security Industry for use in training, organizing inspections of collection agents, and hosting customer meetings. The Vietnam Social Security shall allocate these funds to provincial-level Social Security agencies and related units for implementation.

b) Social Security agencies shall base the payment of remuneration to collection agents on the amount and list of participants submitted by the collection agents; the amount paid corresponds to the remuneration rate specified by the General Director of the Vietnam Social Security.

c) Social Security agencies have the responsibility to provide forms for collection agents to print and use for compiling participant lists.”

6. Amend Clause 3, Article 8 as follows:

“3. The method for allocating the costs of paying pensions, social insurance allowances, and unemployment allowances as prescribed in Clause 4 and Point b, Clause 9, Article 1 of Decision No. 38/2019/QĐ-TTg:

a) The average cost of paying pensions, social insurance allowances, and unemployment allowances (payment costs) across the industry equals 0.65% of the total amount paid for social insurance benefits as stipulated in Clause 4 and Point b, Clause 9, Article 1 of Decision No. 38/2019/QĐ-TTg. The Vietnam Social Security shall implement as follows:

- Allocate 70% of the average payment cost across the industry to organizations acting as payment agents;

+ The General Director of the Vietnam Social Security shall determine the payment cost rate (as a percentage or absolute amount) for each province and centrally-administered city for the provincial-level Social Security to pay to the payment agent organizations;

+ Payment agent organizations shall decide and be responsible for using the payment costs paid by the Social Security agency, ensuring safe, accurate, and timely payments in accordance with the contract signed between the Social Security agency and the payment agent organization;

+ The Social Security agency must specify in detail the tasks that payment agent organizations must perform in the contract signed with them;

- Retain 30% of the average payment cost across the industry for the Social Security Industry to use for payment services (including: file storage for beneficiaries; monitoring and supervising payments; overtime work; supporting staff involved in payment days). The Vietnam Social Security shall allocate these funds to provincial-level Social Security agencies and related units for implementation;

b) Social Security agencies shall transfer payment costs to the accounts of payment agent organizations based on the amounts paid to beneficiaries (without cash payments); the transferred amount corresponds to the payment cost rate specified by the General Director of the Vietnam Social Security.”

7. Amend Points a, b, and c, Clause 1, Article 9 as follows:

“a) Costs for publicizing policies and laws on social insurance, health insurance, and unemployment insurance; training and professional development; administrative reform; managing participants and beneficiaries of social insurance, health insurance, and unemployment insurance; costs for inspection, supervision, modernization of management systems: Implemented in accordance with the relevant expenditure items prescribed in Clauses 1, 2, 3, 4, Point c, Clause 6, Clause 8, and Clause 11, Article 9 of Decision No. 60/2015/QĐ-TTg, Point a and c, Clause 9, Article 1 of Decision No. 38/2019/QĐ-TTg;

b) For serving the work of collecting voluntary social insurance contributions; collecting health insurance premiums for civilian students and trainees studying at educational institutions managed by the Ministry of National Defense and the Ministry of Public Security: The maximum expenditure level shall be equal to 7.5% of the amount paid by the participants (excluding revenues from the state budget, organizations, and individuals' support), including: the average remuneration level for organizations acting as agents for collecting voluntary social insurance contributions shall be a maximum of 14% of the amount paid by the participants in voluntary social insurance; the average remuneration level for educational institutions shall be a maximum of 2.5% of the amount paid by students and trainees; the average remuneration level for agents collecting health insurance premiums for other subjects shall be a maximum of 7.0% of the health insurance premium amount paid by the participants.

c) Expenditure for paying social insurance benefits shall be 0.65% of the amount paid for social insurance benefits (excluding expenses for medical examination and appraisal fees; recuperation and rehabilitation; support for prevention, sharing risks related to workplace accidents and occupational diseases; support for job transition for those affected by workplace accidents and occupational diseases when returning to work; health insurance contributions); among which, the expenditure for organizations acting as agents for payment shall be 70% of the total expenditure for payment.”

8. Amend the title of Clause 2 Article 9 as follows:

“2. Within the scope of management costs that can be used, units implement measures to save funds, and the saved funds shall be used according to the provisions of Article 10 of Decision No. 60/2015/QĐ-TTg and Clause 10 Article 1 of Decision No. 38/2019/QĐ-TTg. Specifically, the establishment of supplementary income funds and incentive and welfare funds shall be carried out as follows:"

9. Amend Clause 3 Article 10 as follows:

“3. Processing surplus funds at year-end, reviewing and consolidating final accounts:

a) Funds allocated for tasks within the year that have not been used by the end of the year shall be transferred to the next year for continued use;

b) Reviewing and consolidating final accounts: The Ministry of Labor - Invalids and Social Affairs shall be responsible for reviewing and approving the annual final accounts of management funds for unemployment insurance for units in accordance with Circular No. 137/2017/TT-BTC dated December 25, 2017 issued by the Ministry of Finance on the review, audit, notification, and consolidation of annual final accounts (hereinafter referred to as Circular No. 137/2017/TT-BTC); consolidate and prepare the annual final accounts report on management funds for unemployment insurance of the Employment Service Center and the Employment Service Centers under the Department of Labor - Invalids and Social Affairs that have been reviewed and approved for retention in other operational activities (the forms to be implemented according to Part C Form B01/BCQT, Sub-form F01-01/BCQT and Form B02/BCQT issued together with Circular No. 107/2017/TT-BTC dated October 10, 2017 of the Ministry of Finance guiding the accounting system for administrative and public service units (hereinafter referred to as Circular No. 107/2017/TT-BTC) and Form 03 issued together with Circular No. 137/2017/TT-BTC), and send it to the Vietnam Social Security for consolidation and finalization according to regulations.”

10. Add Article 10a as follows:

“Article 10a. Management Costs for Work Injury Insurance and Occupational Disease Insurance

1. Content and Level of Expenditure:

a) Supporting expenditures for propaganda, dissemination of policies and laws on work injury insurance and occupational disease insurance, measures to improve working conditions, preventive work injury and occupational disease activities; training and professional development on work injury insurance and occupational disease insurance; administrative reform in work injury insurance and occupational disease insurance procedures; expenditures for purchasing modernized management systems: Implemented according to the relevant expenditure contents stipulated in Clauses 1, 2, 3, 8, and 11 of Article 9 of Decision No. 60/2015/QĐ-TTg;

b) Supporting expenditures for printing, office supplies, photocopying documents, forms, notices, reports;

c) Supporting expenditures for preserving and storing documents related to work injury insurance and occupational disease insurance;

d) Supporting expenditures for labor, veterans, and social affairs agencies, and related agencies in implementing work injury insurance and occupational disease insurance benefits, inspection, and supervision, and related tasks (including the consolidation, acceptance, and evaluation of activity support files for preventing and sharing risks related to work injuries and occupational diseases and adjusting work injury and occupational disease insurance contribution rates). Specific support levels are determined by the head of the unit within the scope of available management costs;

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

e) Expenditures for transferring management costs for work injury insurance and occupational disease insurance to the State Treasury and commercial banks;

g) Activities for coordinating inspections and supervising the resolution of work injury insurance and occupational disease insurance benefits and related tasks: Supporting coordination and guidance work, travel expenses, night shifts, overtime, fuel or rental vehicle expenses for inspection and supervision activities;

h) Non-recurring expenditures, including:

- Supporting research expenditures at the grassroots level: Implemented according to the legal provisions on expenditure regulations for scientific and technological tasks;

- Supporting expenditures for overseas study, experience exchange, and welcoming foreign guests to Vietnam to implement work injury insurance and occupational disease insurance policies, decided by the competent authority;

- Other expenses as prescribed by law.

2. Management and Use of Funds:

a) Based on the assigned budget estimates, units manage and use funds to carry out tasks assigned by the Minister of Labor, Invalids, and Social Affairs and according to the expenditure provisions stipulated in Clause 1 of this Article;

b) Funds allocated for tasks within the year that have not been used by the end of the year shall be transferred to the next year for continued use;

c) At the end of the fiscal year, units shall be responsible for preparing and submitting the annual final accounts report according to Circular No. 107/2017/TT-BTC before March 31 each year for review, consolidation, and submission of the final accounts report to the Vietnam Social Security.

3. Reviewing and Consolidating Final Accounts:

The Ministry of Labor, Invalids and Social Affairs is responsible for reviewing and approving the final accounts and announcing the results of the review of the final accounts for the year concerning the management funds for Work Injury Insurance and Occupational Disease Insurance for units in accordance with Circular No. 137/2017/TT-BTC; compiling and preparing the annual final account report for the management funds for Work Injury Insurance and Occupational Disease Insurance to be retained in other operational sources (the forms to be implemented according to Part C of Form B01/BCQT, supplementary form F01-01/BCQT and Form B02/BCQT issued together with Circular No. 107/2017/TT-BTC and Form 03 issued together with Circular No. 137/2017/TT-BTC), and submitting them to the Vietnam Social Security for consolidation and settlement in accordance with regulations.

Article 2. Effective Date

This Circular takes effect from May 30, 2020. Specifically, the contents prescribed in Clauses 1, 2, 3, 5, 6, and 7 of Article 1 of this Circular shall be implemented from the fiscal year 2019 in accordance with Decision No. 38/2019/QĐ-TTg; the content and level of expenditure on management costs for Work Injury Insurance and Occupational Disease Insurance stipulated in Clause 10 of Article 1 of this Circular shall be implemented from the fiscal year 2020.

Article 3. 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./.