Circular No. 27/2005/TT-BLDTBXH guiding the increase in pension and social insurance benefits according to Decree No. 118/2005/NĐ-CP dated September 15, 2005 of the Government.

CIRCULAR

Guidelines for increasing pensions and social insurance benefits

pursuant to Decree No. 118/2005/NĐ-CP dated September 15, 2005 of the Government

Pursuant to Article 2 of Decree No. 118/2005/NĐ-CP dated September 15, 2005 of the Government on adjusting the national minimum wage, the Ministry of Labor - Invalids and Social Affairs guides the increase in pensions and social insurance benefits as follows:

I. APPLICABLE OBJECTS

1. Officials, civil servants, workers, employees, and laborers; military personnel, public security officers, and personnel engaged in confidential work who are receiving pensions before October 1, 2005.

2. Workers and employees currently receiving disability benefits, including those receiving benefits under Decision No. 91/2000/QĐ-TTg dated August 4, 2000 of the Prime Minister.

3. Rubber plantation workers currently receiving monthly benefits.

4. Village, ward, and town cadres as defined in Decree No. 121/2003/NĐ-CP dated October 21, 2003 and Decree No. 09/1998/NĐ-CP dated January 23, 1998 of the Government who are receiving pensions and monthly benefits before October 1, 2005.

5. Persons currently receiving work injury and occupational disease benefits and survivor benefits before October 1, 2005.

6. Persons receiving sick leave and maternity benefits before October 1, 2005.

II. INCREASE IN PENSIONS AND SOCIAL INSURANCE BENEFITS

1. For the subjects specified in Clause 1, 2, 3, and Clause 4 of Section I of this Circular, their pensions and monthly benefits shall be increased as follows:

Example 1: Mr. Nguyen Van A, whose pension has been adjusted according to Circular No. 26/2005/TT-BLĐTBXH, is 825,000 VND/month.

Mr. A's pension from October 2005 will be calculated as follows:

825,000 VND/month x 1.207 = 995,775 VND/month

Example 2: Mr. Nguyen Van B, rank Lieutenant Colonel, whose pension has been adjusted according to Circular No. 26/2005/TT-BLĐTBXH, is 1,200,000 VND/month.

Mr. B's pension from October 2005 will be calculated as follows:

1,200,000 VND/month x 1.207 = 1,448,400 VND/month

Example 3: Mr. Tran Quang D, who worked in the state sector and then transferred to a joint venture company, whose pension has been adjusted according to Circular No. 26/2005/TT-BLĐTBXH, is 1,050,000 VND/month.

Mr. D's pension from October 2005 will be calculated as follows:

1,050,000 VND/month x 1.207 = 1,267,350 VND/month

Example 4: Mr. Vu Van E, a village cadre who retired and receives monthly benefits according to Decree No. 09/1998/NĐ-CP, whose benefit has been adjusted according to Circular No. 26/2005/TT-BLĐTBXH, is 326,700 VND/month.

Mr. E's pension from October 2005 will be calculated as follows:

326,700 VND/month x 1.207 = 394,327 VND/month

Example 5: Mr. Nguyen Van G, who retired due to loss of working capacity and receives disability benefits, whose benefit has been adjusted according to Circular No. 26/2005/TT-BLĐTBXH, is 350,000 VND/month.

Mr. G's monthly disability benefit from October 2005 will be calculated as follows:

350,000 VND/month x 1.207 = 422,450 VND/month

2. For the subject specified in Clause 5 of Section I of this Circular, the monthly work injury, occupational disease benefits, and survivor benefits will be increased as follows:

a) Persons receiving benefits before October 1, 2005:

Example 6: Mr. Tran Van K, whose monthly work injury benefit is 174,000 VND/month.

Mr. K's benefit from October 2005 will be calculated as follows:

174,000 VND/month x 1.207 = 210,018 VND/month

b) Persons who were discharged from hospital due to work injury or occupational disease before October 1, 2005 but have not yet received benefits, the benefit for the period before October 1, 2005 will be paid at the September 2005 rate.

c) Persons with a reduction in working capacity of 81% or more due to work injury or occupational disease, their monthly service allowance will be increased as follows:

d) Persons who died before October 1, 2005 and whose relatives have not yet received funeral expenses and survivor benefits, the funeral expenses and survivor benefits for the period before October 1, 2005 will be paid at the September 2005 rate.

3. For the subject specified in Clause 6 of Section I of this Circular, if they continue to receive benefits from October 1, 2005 onwards, the benefit amount will be calculated based on the national minimum wage of 350,000 VND/month.

4. Military personnel and public security officers who have changed careers and retired or stopped working due to loss of working capacity, who receive career change allowances as stipulated in Article 3 of Decision No. 812/TTg dated December 12, 1995, the career change allowance will be calculated based on the national minimum wage of 350,000 VND/month.

5. Retirees living alone who receive pensions as stipulated in Article 2 of Decision No. 812/TTg dated December 12, 1995, will receive a pension of 525,000 VND/month.

6. Persons receiving monthly pensions, disability benefits, work injury, and occupational disease benefits who reside in areas with regional allowances, the regional allowance will be calculated based on the national minimum wage of 350,000 VND/month.

III. IMPLEMENTATION

1. The Ministry of Labor - Invalids and Social Affairs shall coordinate with the Ministry of Finance, the Ministry of Defense, and the Ministry of Public Security to organize guidance and inspection of the implementation in accordance with Decree No. 118/2005/NĐ-CP and this Circular.

2. Provincial People's Committees directly under the Central Government shall be 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.

3. The Vietnam Social Security shall be responsible for implementing the increase in pensions and social insurance benefits as stipulated in Decree No. 118/2005/NĐ-CP and guided in this Circular; prepare reports according to the attached form of this Circular and submit them to the Ministry of Labor - Invalids and Social Affairs and the Ministry of Finance.

4. Additional funding resulting from the adjustment of pensions and social insurance benefits for subjects funded from the State budget shall be guaranteed by the Ministry of Finance.

5. This Circular takes effect 15 days after its publication in the Official Gazette; the provisions of this Circular shall apply from October 1, 2005.

In the course of implementation, if there are difficulties, please reflect them to the Ministry of Labor, Invalids, and Social Affairs for research and resolution./.