Joint Circular of the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance No. 26/2000/TTLT-BLDTBXH-BTC dated October 20, 2000 guiding the implementation of social insurance for workers employed in non-state-owned establishments in the education, health care, culture, and sports sectors.

JOINT CIRCULAR

Joint Circular No. 26/2000/TTLT-BLDTBXH-BTC dated October 20, 2000 of the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance guiding the implementation of social insurance for workers employed in non-state-owned establishments in the fields of education, healthcare, culture, and sports.

--------------------------

Implementing Government Decree No. 73/1999/NĐ-CP dated August 19, 1999 on policies to encourage socialization in the fields of education, healthcare, culture, and sports.

Pursuant to Government Decree No. 12/CP dated January 26, 1995 promulgating the Social Insurance Regulations; after receiving comments from relevant ministries; the Joint Ministries of Labor, Invalids and Social Affairs and Finance hereby guide the implementation of social insurance for workers employed in non-state-owned establishments in the fields of education, healthcare, culture, and sports as follows:

I. SCOPE AND APPLICABLE SUBJECTS

1) The scope of application includes semi-public; private; and non-profit organizations in the fields of culture; healthcare; education and training; and physical education and sports established and operating under Government Decree No. 73/1999/NĐ-CP dated August 19, 1999 (hereinafter referred to collectively as non-state-owned establishments).

2) The subjects of application are workers employed at the establishments specified in point 1 above, including:

Civil servants, public officials, and employees working in state agencies (including Party and mass organizations) and armed forces who have participated in mandatory social insurance under Government Decrees No. 12/CP dated January 26, 1995 and No. 45/CP dated July 15, 1995 and have transferred to work at non-state-owned establishments.

Workers employed in enterprises, economic organizations, and social organizations who have participated in mandatory social insurance under Government Decree No. 12/CP dated January 26, 1995 and have transferred to work at non-state-owned establishments.

Workers hired to work at non-state-owned establishments under labor contracts stipulated in the Labor Code.

d) Village and ward cadres who are entitled to subsistence allowances and participate in social insurance under Government Decree No. 09/1998/NĐ-CP dated January 23, 1998 and have transferred to work at non-state-owned establishments.

II. SOCIAL INSURANCE REGIME

Subjects specified in point 2 of Section I above working at non-state-owned establishments shall apply the social insurance regimes prescribed in the Social Insurance Regulations issued together with Government Decree No. 12/CP dated January 26, 1995 and Circular No. 06/LĐTBXH-TT dated April 4, 1995 of the Ministry of Labor, Invalids and Social Affairs.

When applying social insurance regimes for these subjects, attention should be paid to the following cases:

Method of calculating time as the basis for enjoying social insurance benefits.

a) Workers who had worked at non-state-owned establishments before joining and contributing to social insurance at units subject to social insurance under Government Decrees No. 12/CP dated January 26, 1995, No. 45/CP dated July 15, 1995, and No. 09/1998/NĐ-CP dated January 23, 1998 of the Government, if they have not yet received pension or one-time social insurance allowance, then this period will be added to their working time at non-state-owned establishments to enjoy social insurance benefits.

In the following cases, working time will not be counted towards enjoying social insurance benefits:

+ Workers who had received one-time allowance for their previous working time and social insurance contributions according to the Social Insurance Regulations issued together with Government Decree No. 12/CP dated January 26, 1995 and Decision No. 595/TTg dated December 15, 1993 of the Prime Minister before transferring to work at non-state-owned establishments.

+ Workers who have worked at non-state-owned establishments but have not contributed to social insurance.

2) The average level of salary serving as the basis for calculating monthly pension or one-time allowance is defined as follows:

a) Workers who had worked and contributed to social insurance based on the national wage scale and pay grade issued together with Government Decrees No. 25/CP and No. 26/CP dated May 23, 1993, and then transferred to work at non-state-owned establishments and continued to contribute to social insurance based on the national wage scale, the level of salary serving as the basis for enjoying pension or social insurance allowance will be calculated as the weighted average of the monthly salaries serving as the basis for social insurance contributions during the last five years before retirement, as stipulated in item a, point 6, section IV, part B of Circular No. 06/LĐTBXH-TT dated April 4, 1995 of the Ministry of Labor, Invalids and Social Affairs.

Workers who had worked and contributed to social insurance based on the national wage scale, and then transferred to work at non-state-owned establishments and contributed to social insurance without following the national wage scale, the level of salary serving as the basis for enjoying pension or social insurance allowance will be calculated as the weighted average of the monthly salaries serving as the basis for social insurance contributions across all periods, as stipulated in item b, point 6, section IV, part B of Circular No. 06/LĐTBXH-TT dated April 4, 1995 of the Ministry of Labor, Invalids and Social Affairs.

b) Village and ward cadres who had participated in social insurance under Government Decree No. 09/1998/NĐ-CP dated January 23, 1998, and then transferred to work at non-state-owned establishments and contributed to social insurance based on the national wage scale or not following the national wage scale, the level of salary serving as the basis for enjoying pension or social insurance allowance will be calculated as the weighted average of the monthly salaries serving as the basis for social insurance contributions, as stipulated in item b, point 6, section IV, part B of Circular No. 06/LĐTBXH-TT dated April 4, 1995 of the Ministry of Labor, Invalids and Social Affairs.

c) New workers hired to work at non-state-owned establishments and start participating in social insurance from the date this circular takes effect, the level of salary serving as the basis for enjoying pension or social insurance allowance will be the weighted average of the monthly salaries serving as the basis for social insurance contributions.

III. IMPLEMENTATION

1) Workers employed in non-state-owned establishments shall be issued a social insurance book as the basis for enjoying social insurance benefits.

2) For workers who have not been issued a social insurance book, non-state-owned institutions shall be responsible for establishing files, processing procedures to issue and record social insurance books for workers, and fully perform their responsibilities as prescribed in the Social Insurance Regulations issued together with Decree No. 12/CP dated January 26, 1995 of the Government and Circular No. 09/LDTBXH-TT dated April 26, 1996 of the Ministry of Labor, Invalids and Social Affairs.

3) For workers who were issued a social insurance book before transferring to a non-state-owned institution, the previous employer shall be responsible for transferring the social insurance book to the worker to submit to the new employer.

4) The Vietnam Social Security shall be responsible for implementing social insurance benefits for workers employed at non-state-owned institutions as stipulated in this Circular.

5) The Departments of Labor, Invalids and Social Affairs, Finance Departments of provinces and centrally-administered cities shall be responsible for coordinating with the Departments of Education and Training, Culture and Information, Health, and Sports and Physical Training of the provinces and centrally-administered cities to guide and inspect the implementation of social insurance benefits for workers at non-state-owned institutions as stipulated in this Circular.

IV. IMPLEMENTATION PROVISIONS

1) This Circular shall take effect fifteen days from the date of signature.

2) During the implementation process, if there are any difficulties, they should be reported to the Joint Ministries for study and resolution.