Joint Circular No. 270/2003/TTLT/BQP-BCA-BLDTBXH guiding the implementation of certain points of Decree No. 89/2003/NĐ-CP dated August 5, 2003 of the Government on amending and supplementing certain provisions of the Social Insurance Regulation for officers, professional soldiers, non-commissioned officers, and soldiers of the People's Army and the People's Public Security, issued together with Decree No. 45/CP dated July 15, 1995 of the Government.

1. The sickness allowance as stipulated in Clause 1, Article 1 of Decree No. 89/2003/NĐ-CP is as follows:

- 15 days within a year for children aged three to under seven years old.

2. The maternity allowance as stipulated in Clause 2, Article 1 of Decree No. 89/2003/NĐ-CP is as follows:

Female military personnel and female public security personnel who are pregnant or give birth (regardless of the number of births) shall enjoy maternity benefits during the period of leave as prescribed in Articles 9 and 10 of the Social Insurance Regulations for Military Personnel and Public Security Personnel.

a. Male military personnel and public security personnel with at least 15 years of social insurance contributions shall be calculated at 45% of the average monthly salary used as the basis for social insurance contributions; thereafter, for each additional year beyond the 15th year, an additional 2% shall be added. The maximum monthly pension rate shall be 75% of the average monthly salary used as the basis for social insurance contributions.

+ For 15 years: 45%.

Example + From the 16th to the 27th year (12 years): 2% x 12 (years) = 24%.

+ The percentage for calculating Mr. Trung's monthly pension is: 45% + 24% = 69%.

b. Female military personnel and public security personnel with at least 15 years of social insurance contributions shall be calculated at 45% of the average monthly salary used as the basis for social insurance contributions; thereafter, for each additional year beyond the 15th year, an additional 3% shall be added. The maximum monthly pension rate shall be 75% of the average monthly salary used as the basis for social insurance contributions.

Example 2: Ms. Nguyen Thi Hoa, Captain, has 25 years of service and retired in March 2003, the calculation of the percentage of monthly pension is as follows:

+ From the 16th to the 25th year (10 years): 3% x 10 (years) = 30%.

Example + The percentage for calculating Ms. Hoa's monthly pension is: 45% + 30% = 75%.

+ The percentage for calculating Mr. Trung's monthly pension is: 45% + 24% = 69%.

4. The method of calculating a lower monthly pension as stipulated in Point 2, Clause 5, Article 1 of Decree No. 89/2003/NĐ-CP is as follows:

a. Military personnel and public security personnel who receive monthly retirement benefits at a lower rate as prescribed in Clauses 1 and 2 of Article 24 of the Social Insurance Regulations for Military Personnel and Public Security Personnel shall calculate their pensions according to the provisions set out in Point 3 above, but for each year they retire before the age specified in Clauses 1, 2, and 3 of Article 23 of the Social Insurance Regulations for Military Personnel and Public Security Personnel, there will be a reduction of 1% of the average monthly salary used as the basis for social insurance contributions.

+ 26 years of social insurance contributions calculated at 67%.

Example 3: + The percentage reduction due to retiring before the age of 55 as stipulated above: (55 years - 51 years) x 1% = 4%

+ The percentage for calculating Mr. An's monthly pension is: 67% - 4% = 63%

b. Male military personnel and public security personnel aged 50 or older but under 55, and female personnel aged 45 or older but under 50, with at least 30 years of social insurance contributions, shall receive pensions calculated according to the provisions set out in Point 3 above, but for each year they retire before the age specified in Clause 1 of Article 3 of the Social Insurance Regulations for Military Personnel and Public Security Personnel, there will be no reduction of 1% of the average monthly salary used as the basis for social insurance contributions.

Example: Mr. Tran Van Duy, Major of Public Security, has 50 years and 5 months of age and 30 years of social insurance contributions, retired in July 2003; the calculation of the percentage of monthly pension is as follows:

+ For 15 years of social insurance contributions calculated at 45%.

Example 4: + From the 16th to the 30th year (15 years): 2% x 15 (years) = 30%.

+ According to Subpoint b of Point 4 above, Mr. Duy is not subject to a reduction in percentage compared to the age of 55 stipulated in Clause 1 of Article 3 of the Social Insurance Regulations for Military Personnel and Public Security Personnel because he has completed 30 years of social insurance contributions. Therefore, the percentage for calculating Mr. Duy's monthly pension is 75%.

From year 16 to year 30 (15 years): 2% x 15 (years) = 30%.

45% + 30% = 75%.

According to paragraph b, point 4 above, Comrade Duy is not subject to the deduction ratio percentage based on age 55 as stipulated in Clause 1, Article 3 of the Social Insurance Charter for military personnel and public security officers because he has completed 30 years of social insurance contributions. Therefore, the percentage for calculating Comrade Duy's monthly pension is 75%.

c. Military personnel and public security officers who retire with a pension lower than that specified in Clauses 1 and 2 of Article 24 of the Social Insurance Charter for military personnel and public security officers, if they have a period of social insurance contributions or work time before the Social Insurance Charter took effect and such time is considered as having contributed to social insurance before the age of 16, then the number of years worked before the age of 16 shall be calculated at 2% per year for males and 3% per year for females based on the average monthly salary used for social insurance contributions, to be deducted from the total percentage of the pension reduction due to early retirement, but the maximum deduction shall not exceed the percentage of the pension reduction due to early retirement.

In addition to the monthly pension, military personnel and public security officers who have more than 30 years of social insurance contributions, female military personnel and public security officers who have more than 25 years of social insurance contributions, when retiring, will receive a one-time allowance calculated as follows: for male military personnel and public security officers, from the 31st year onwards, and for female military personnel and public security officers, from the 26th year onwards, each year of social insurance contribution entitles them to receive half (1/2) of a month's average monthly salary used as the basis for social insurance contributions, but the maximum amount shall not exceed five months.

Example 5: Comrade Dô Thi Liên, Major, with 36 years of social insurance contributions, retired in June 2003; the calculation of the one-time allowance upon retirement is as follows:

From the 26th to the 36th year (11 years): 0.5 months' salary x 11 (years) = 5.5 months' salary, but the maximum is only 5 months; therefore, Comrade Liên is entitled to a one-time allowance equal to 5 months' average salary used as the basis for social insurance contributions.

Military personnel and public security officers who have contributed to social insurance for at least 15 years under salary levels corresponding to heavy, hazardous, or dangerous jobs or extremely heavy, hazardous, or dangerous jobs (as listed in the job directory issued by the Ministry of Labor, Invalids, and Social Affairs) and subsequently transferred to other jobs with lower salary levels, where their average salary over the last five years before retirement is lower than the average salary over the continuous five years working in heavy, hazardous, or dangerous jobs, shall, upon retirement, use the highest average salaries from the five consecutive years working in heavy, hazardous, or dangerous jobs as the basis for calculating the pension.

Example 6: Comrade Nguyen Thi Duc has 25 years and 3 months of social insurance and military service, including 12 years of active military service (12% seniority) and 15 years and 6 months in heavy, hazardous work (repairing weapons). She retired in August 2003, at the rank of Major in the Professional Military Corps, serving as a clerk. Comrade Duc's highest average salary from the five consecutive years working in heavy, hazardous work was 1,050,000 VND, and her average salary from the last five years before retirement was 920,000 VND. Therefore, Comrade Duc uses the salary of 1,050,000 VND as the basis for calculating her pension.

Public security officers who have at least 20 years of seniority and are transferred to work in Party, State, or mass organizations outside the public security force at the request of the organization, if their salary upon retirement is lower than their salary while serving, shall use the average salary from the last five years of social insurance contributions before transferring out of the public security force as the basis for calculating the pension.

Example 7: Comrade Pham Van Dai, Lieutenant Colonel in the Public Security Force, has 22 years of seniority and transferred to work in the Provincial Inspectorate of Ha Tay in 1993, with an average salary of 1,700,000 VND/month (calculated according to the minimum wage at the time of receiving social insurance benefits) for the last five years before transferring. He retired in November 2003, with an average salary of 1,550,000 VND/month for the last five years before retirement. According to the above regulation, the salary of 1,700,000 VND/month is used as the basis for calculating Comrade Dai's pension.

Public security officers who have between 15 and less than 20 years of seniority and are transferred to work in Party, State, or mass organizations outside the public security force, or those who have at least 20 years of seniority and voluntarily transfer to work outside the public security force with a salary in the State sector, if their average salary over the last five years before retirement is lower than their average salary over the last five years while serving, shall use the average salary from ten years of social insurance contributions, including the last five years before transferring out of the public security force and the last five years before retirement, as the basis for calculating the pension.

Example 8: Comrade Nguyen Van Phong, former Major in the Public Security Force, has 21 years of seniority and an average salary of 1,456,000 VND/month (converted according to the minimum wage at the time of receiving social insurance benefits) for the last five years before transferring out of the public security force. In June 1996, he voluntarily transferred to work at the Industry Department of Hanoi; in October 2003, he met the conditions for retirement and received a monthly pension according to the Social Insurance Charter issued with Decision No. 12/CP dated January 26, 1995, with an average salary of 1,000,000 VND/month for the last five years before retirement. According to the above regulation, the salary basis for Comrade Phong's pension is: (1,456,000 VND + 1,000,000 VND)/2 = 1,228,000 VND/month.

Those who are entitled to a pension as stipulated in Points 6, 7, and 8 above shall not be entitled to a monthly allowance as stipulated in Article 3 of Decision No. 812/TTg dated December 12, 1995 of the Prime Minister, specifically: upon retirement, they shall not be entitled to an additional monthly allowance based on their military service years (for military personnel) or seniority (for public security officers) and the minimum wage at the time of retirement.

Military personnel upon discharge (including those discharged within one year) and public security officers upon retirement, who have contributed to social insurance for at least 20 years but do not meet the conditions to enjoy pension benefits as stipulated in Article 23 or clauses 1 and 2 of Article 4 of the Social Insurance Charter for military personnel and public security officers, shall be entitled to choose one of the three methods provided in sub-items a, b, and c below:

a. Discharge allowance (for military personnel) or retirement allowance (for public security officers):

Military personnel and public security officers receiving salary upon discharge or retirement shall receive a discharge allowance from the social insurance fund calculated as follows:

Discharge allowance = Number of years of service counted as military age x 1.5 months of salary.

In cases where there has been continuous employment including time as workers or civil servants, such time shall be considered for the allowance as if they were workers or civil servants leaving their jobs: for each year of work, one month of salary shall be received.

b. Waiting period until reaching the age to enjoy monthly pension benefits: the military or public security social insurance agency shall establish a waiting pension file upon request of the individual with a voluntary application and confirmation from the competent authority:

b.1. During the waiting period until reaching the age to enjoy monthly pension benefits, no salary or social insurance benefits shall be received, but the social insurance book shall be managed by the individual.

b.2. Military personnel and public security officers who have worked for 20 years under normal conditions shall wait until they reach 55 years old for males and 50 years old for females.

Military personnel and public security officers who have contributed to social insurance for 20 years, including at least 15 years in hazardous, toxic, dangerous, or heavy work conditions; or at least 15 years working in areas with regional coefficients of 0.7 or higher; or at least 10 years in battlefields B, C, K or on international missions shall wait until they reach 50 years old for males and 45 years old for females.

b.3. During the waiting period, if they continue to work and are subject to mandatory social insurance, they shall continue to contribute to social insurance; the subsequent contribution period shall be added to the previous contribution period to calculate future social insurance benefits and shall enjoy social insurance benefits as prescribed in Decree No. 12/CP dated January 26, 1995 and Decree No. 01/2003/NĐ-CP dated January 9, 2003 of the Government.

b.4. During the waiting period, if they suffer illness, accidents, or health deterioration, they may submit an application to the provincial social insurance agency where they reside for a health assessment; if their labor capacity is reduced by 61% or more and they meet the conditions stipulated in clauses 1 and 2 of Article 24 of the Social Insurance Charter for military personnel and public security officers, the Director of the provincial social insurance agency shall issue a decision to enjoy monthly pension benefits at the low rate specified in the Social Insurance Charter for military personnel and public security officers; the pension payment period shall start from the month following the month when the medical examination results are available.

b.5. During the waiting period, if they cease to participate in social insurance and die, they shall be entitled to the death benefit as prescribed in Section V of the Social Insurance Charter for military personnel and public security officers, calculated based on the minimum wage level at the time of death; the establishment of the death benefit claim file and the payment of funeral expenses, lump-sum or monthly survivor's allowance shall be handled by the provincial social insurance agency where the military personnel or public security officer resides legally.

c. Preservation of social insurance contribution period: military personnel and public security officers who voluntarily apply to preserve their social insurance contribution period and not receive a one-time allowance from the social insurance fund, with confirmation from the head of the competent unit, shall have their contribution period and contribution level recorded in their social insurance book by the military or public security social insurance agency.

c.1. During the preservation period, if they do not continue to participate in social insurance, they shall not receive salary or social insurance benefits, but shall manage their own social insurance book.

c2. During the preservation period, if they continue to work and are subject to mandatory social insurance, they shall continue to contribute to social insurance; the subsequent contribution period shall be added to the previous contribution period to calculate future social insurance benefits and shall enjoy social insurance benefits as prescribed in Decree No. 12/CP and Decree No. 01/2003/NĐ-CP.

c.3. If they do not continue to participate in social insurance and suffer illness, accidents, or health deterioration, they may submit an application to the provincial social insurance agency where they reside for a health assessment; if their labor capacity is reduced by 61% or more and they meet the conditions stipulated in clause 1 of Article 24 of the Social Insurance Charter for military personnel and public security officers, the Director of the provincial social insurance agency shall issue a decision to enjoy monthly pension benefits at the low rate specified in the Social Insurance Charter for military personnel and public security officers; the pension payment period shall start from the month following the month when the medical examination results are available.

c.4. If they do not participate in social insurance and reach the required age, they shall submit an application along with their social insurance book to the provincial social insurance agency where they reside legally; the Director of the provincial social insurance agency shall issue a decision to enjoy monthly pension benefits as prescribed in clauses 1 and 2 of Article 23 of the Social Insurance Charter for military personnel and public security officers.

c.5. If they do not continue to participate in social insurance and die, they shall be entitled to the death benefit as prescribed in Section V of the Social Insurance Charter for military personnel and public security officers, calculated based on the minimum wage level at the time of death; the establishment of the death benefit claim file and the payment of funeral expenses, lump-sum or monthly survivor's allowance shall be handled by the provincial social insurance agency where the military personnel or public security officer resides legally.

If military personnel or public security officers wish not to receive benefits from the Social Insurance Fund upon discharge or retirement, and they submit a voluntary application personally confirmed by their unit head, they may retain the time of social insurance contributions prior to discharge or retirement. The Military Social Insurance Agency or Public Security Social Insurance Agency shall be responsible for confirming on the Social Insurance Booklet the period and level of social insurance contributions, to allow for continued contributions when conditions permit.

a. After discharge or retirement, if they continue participating in social insurance, the time of social insurance contributions made thereafter will be added to the previous contribution period to calculate future social insurance benefits and they will receive social insurance benefits as prescribed in Decree No. 12/CP and Decree No. 01/2003/NĐ-CP.

b. If they are discharged or retired more than six months later without continuing to participate in social insurance or due to illness wish to receive benefits from the social insurance fund, the Director of the Provincial Social Insurance shall issue a decision to pay discharge or retirement benefits according to Decision No. 595/TTg dated December 15, 1993 of the Prime Minister, calculated based on the minimum wage at the time of receiving the benefit.

c. If they do not continue to participate in social insurance and die, their dependents will receive a pension benefit according to Section V of the Social Insurance Regulations for military personnel and public security officers, calculated based on the minimum wage at the time of death, handled by the Provincial Social Insurance where the military personnel or public security officers legally reside.

The amount of one-time survivor's allowance for the family of military personnel or public security officers who are on active duty (including cases specified in Article 27 of the Social Insurance Regulations for military personnel and public security officers) who have died, is calculated based on the time of social insurance contributions, with each year being equivalent to half (1/2) month of the average monthly salary used as the basis for social insurance contributions in the last five years before death, as prescribed in Article 26 of the Social Insurance Regulations for military personnel and public security officers, but not exceeding twelve months. For military personnel or public security officers receiving living expenses, it is calculated based on twice the minimum wage per month. The lowest one-time survivor's allowance for military personnel or public security officers is equal to six months of the minimum wage.

Example 9: Comrade Nguyen Van Anh joined the military in February 1998, died of illness on February 16, 2003, with a total of 5 years and 1 month of social insurance participation, and an average monthly salary of 622,533 VND in the last five years.

One-time survivor's allowance equals: 622,533 VND x 5 (months of salary) x 5 (years) = 1,556,332 VND (partial months are not counted), which is lower than six months of the minimum wage, which is 290,000 VND x 6 (months) = 1,740,000 VND. According to the above regulations, Comrade Anh's family receives a one-time survivor's allowance of 1,740,000 VND.

a. When there are partial months in the social insurance contribution period, the calculation ratio for monthly pension and one-time allowance upon retirement, and one-time survivor's allowance is as follows: less than three months of contributions are not counted, from three to six months are counted as half (1/2) of the annual contribution rate; from seven to less than twelve months are counted as the full annual contribution rate.

Example 10: Comrade Do Thi Xuan, Major, has 23 years and 4 months of service and retired in May 2003. The calculation ratio for her monthly pension is as follows:

- Fifteen years of contributions are calculated at 45%.

- From the sixteenth to the twenty-third year (eight years), each year adds 3%: 3% x 8 years = 24%.

- Four partial months are counted as 3% x 0.5 (year) = 1.5%.

- In total, the ratio for calculating Comrade Xuan's monthly pension is: 45% + 24% + 1.5% = 70.5%.

Example 11: Comrade Tran Van Nhan, Senior Colonel of the Public Security Force, has 30 years and 6 months of service and received retirement benefits from April 2003. Comrade Nhan receives a monthly pension ratio of 75% and a one-time allowance due to six partial months (of the thirty-first year) as follows:

0.5 month of salary x 0.5 (year) = 0.25 month of the average salary of the last five years.

Example 12: Comrade Phan Van Truong, Major, has 13 years and 8 months of social insurance participation, died of illness on January 20, 2003, with an average monthly salary for the last five years of social insurance contributions of 1,100,000 VND. The calculation of the one-time survivor's allowance for Comrade Truong's family is as follows:

- Thirteen years of social insurance participation:

0.5 month of salary x 13 (years) = 6.5 months of salary.

- Eight partial months are counted as the salary of one year: additional 0.5 month of salary.

- In total, Comrade Truong's family receives seven months of the average salary of the last five years (6.5 months of salary + 0.5 month of salary):

1,100,000 VND x 7 (months) = 7,700,000 VND.

b. When determining the social insurance contribution period to calculate retirement benefits (according to Articles 23 and 24 of the Social Insurance Regulations for military personnel and public security officers), one year must be counted as twelve months. If the social insurance contribution period is still short by a maximum of six months and the military personnel or public security officer wishes to receive monthly retirement benefits, they can make a one-time additional social insurance contribution for the remaining months with the Military Social Insurance Agency or Public Security Social Insurance Agency, at a monthly rate of 15% of the last monthly salary before retirement, and receive a pension from the month following the completion of the required contribution period, as decided by the Director of the Military Social Insurance Agency or Public Security Social Insurance Agency. Specifically, collecting social insurance to resolve retirement benefits for the following groups:

b.1. Military personnel or public security officers who are 55 years old for males and 50 years old for females, but are still short by a maximum of six months, and have contributed for twenty years.

b.2. Military personnel or public security officers who are 50 years old for males and 45 years old for females, and have worked fifteen years in heavy, hazardous, or dangerous jobs; or fifteen years in areas with a regional allowance coefficient of 0.7 or higher; or ten years in battlefields B, C, K, but are still short by a maximum of six months, and have contributed for twenty years.

b.3. People's Police members who are 50 years old for males and 45 years old for females but are still lacking up to a maximum of six months shall have 30 years of service for males and 25 years of service for females.

b.4. Military personnel who have served at least five years in military service (regardless of age) but are still lacking up to a maximum of six months shall have 25 years of service for males and 20 years of service for females.

b.5. Military personnel and People's Police members who are 50 years old for males and 45 years old for females, with a labor capacity reduction of 61% or more but are still lacking up to a maximum of six months shall have 20 years of social insurance contributions.

b.6. Military personnel and People's Police members who have worked for 15 years in particularly arduous, hazardous, or dangerous occupations, with a labor capacity reduction of 61% or more, regardless of age, but are still lacking up to a maximum of six months shall have 20 years of social insurance contributions.

b.7. Military personnel and People's Police members who are 60 years old for males and 55 years old for females but are still lacking up to a maximum of six months shall have 15 years of social insurance contributions.

Example 13: Comrade Hoang Thi Hai, Major, born in February 1954, started contributing to social insurance from August 1983. Due to health issues not meeting job requirements (labor capacity reduced by 69%), the unit discharged her in March 2003 (receiving salary until February 2003).

In accordance with sub-item b.5 above, Comrade Hai is still lacking five months of social insurance contributions to meet the conditions for receiving monthly pension benefits at a lower rate. If Comrade Hai voluntarily (with a request letter and confirmation from the unit) continues to contribute 15% of the five months' shortfall to the Military Social Insurance Fund, the Director of the Military Social Insurance Fund will decide to grant her pension benefits starting from August 2003 (the month following the completion of 20 years of social insurance contributions).

c. When determining the period of social insurance contributions for receiving monthly survivor benefits, one year must be counted as twelve months. If the period of social insurance contributions is lacking up to a maximum of six months and the dependents wish to receive monthly survivor benefits, they must continue to contribute social insurance for the remaining months in one lump sum, with the monthly contribution rate being 15% of the last month's salary before the death of the military personnel or People's Police member; the monthly survivor benefit will be received from the month following the completion of fifteen years of social insurance contributions, as decided by the Director of the Military Social Insurance Fund or the Public Security Social Insurance Fund.

Example 14: Comrade Duong Van Loc, Captain of Public Security, started contributing to social insurance from June 1988; he fell ill and died in February 2003 (having contributed for 14 years and nine months). His father, aged 63, and mother, aged 53, both farmers, his wife, a civil servant working in Hanoi, and his ten-year-old daughter. If the family wishes (with a request letter and confirmation from the commune or ward People's Committee), the dependents of Comrade Loc can continue to contribute 15% of the three months' shortfall to the Public Security Social Insurance Fund, and the unit where Comrade Loc worked will prepare the necessary documentation and transfer it to the Public Security Social Insurance Fund for the decision on monthly survivor benefits. The local social insurance offices where the parents and spouse reside will disburse the monthly survivor benefits from June 2003 (the month following the completion of fifteen years of social insurance contributions).

a. The monthly salary basis for social insurance contributions for military personnel and People's Police members includes rank pay or grade pay, seniority allowances, position allowances, regional allowances, hardship allowances, and retention coefficient (if applicable); military personnel and People's Police members contribute 5%, while employers contribute 15% to the Military Social Insurance Fund or the Public Security Social Insurance Fund.

Example 15: Comrade Huynh Van Dung, Colonel, with a rank pay coefficient of 5.30 as of March 2003, has 28 years and four months of military service (seniority allowance of 28%), currently serving as Deputy General Manager of Joint Venture Company X of a military enterprise with foreign partners, with a position allowance equivalent to a coefficient of 0.5; his current monthly salary at the joint venture is 1,000 USD. The Military Social Insurance Fund collects social insurance contributions from Comrade Dung monthly at 20% (5% from Comrade Dung and 15% from the Joint Venture Company), processes social insurance benefits for Comrade Dung, and records the social insurance book based on the following salary:

- Rank Pay: 290,000 VND x 5.30 = 1,537,000 VND

- Seniority Allowance: 1,537,000 VND x 0.28 = 430,360 VND

- Position Allowance: 290,000 VND x 0.5 = 145,000 VND

Total = 2,112,360 VND/month

The amount of social insurance contribution is: 2,112,360 VND x (5% + 15%) = 422,472 VND/month.

b. For military personnel and People's Police members working in enterprises where both the employer and the individual have made social insurance contributions prior to the issuance of this Circular but have not yet received social insurance benefits, the following measures shall be taken:

b.1. All periods of social insurance contributions and the amounts thereof, which were not made according to the provisions of sub-item a above, at the Social Insurance Fund of the Ministry of National Defense, the Ministry of Public Security, or the Social Insurance Fund of the provinces, shall be confirmed on each person's social insurance book by the provincial Social Insurance Fund, accompanied by a list sent to the Military Social Insurance Fund or the Public Security Social Insurance Fund; if military personnel and People's Police members have not been issued a social insurance book, the provincial Social Insurance Fund shall provide a certificate of the period and amount of social insurance contributions made according to the enterprise or joint venture salary for each individual, transferred to the Military Social Insurance Fund or the Public Security Social Insurance Fund as the basis for collecting or refunding social insurance and establishing a social insurance book.

b.2. Based on the level of social insurance contributions according to the salary in enterprises, joint ventures, the Social Insurance Fund of the Ministry of National Defense or the Ministry of Public Security shall issue a decision to refund the difference in social insurance contributions of 5% (the portion paid by the employee) between the enterprise or joint venture salary and the rank pay, grade pay, seniority allowance, regional allowance, and position allowance for cases where the enterprise or joint venture salary is higher than the rank pay, grade pay, seniority allowance, regional allowance, and position allowance.

b.3. Based on the social insurance contribution rate according to the salary level in enterprises, joint ventures, the Social Insurance Department under the Ministry of National Defense and the Ministry of Public Security shall issue a decision to recover the 5% social insurance difference (the portion paid by the employee) between the salary level corresponding to rank, grade, seniority allowance, region, position and the salary level of enterprises and joint ventures for cases where the enterprise or joint venture salary is lower than the rank, grade, seniority allowance, region, and position.

b.4. The amount to be recovered or refunded shall be calculated based on the minimum wage and the exchange rate of the Vietnamese Dong against USD at the time of recovery or refund. The stages for calculating social insurance contributions will only change when there is a change in either of the following factors: the military rank salary of military personnel and public security officers; the salary paid by enterprises and joint ventures. The seniority allowance is calculated based on the last change in either of these two factors.

b.5. There shall be no recovery or refund of the social insurance contribution made by the employer (15%).

b.6. For military personnel and public security officers, the implementation of social insurance payments prior to the issuance of this Circular and the recovery or refund of the difference according to the provisions of this Circular (if applicable) must be fully reflected in the Social Insurance Booklet.

Example 16: Comrade Dô Van Quang joined the military in July 1979, was promoted to Major with a salary coefficient of 4.80 in August 1997, and concurrently appointed as Deputy General Director of Joint Venture Y with foreign military enterprises with a monthly salary of 800 USD (equivalent to a coefficient of 0.4); in October 2000, he received a decision from the military to increase his salary coefficient to 5.05. From August 1997 to March 2003, Comrade Quang and the joint venture both contributed to social insurance based on a monthly salary of 800 USD with the Hanoi Social Insurance Department, which issued a Social Insurance Booklet confirming the full amount and period of contributions up to March 2003.

The Military Social Insurance Department will base its calculation of the recovery payment for Comrade Quang on the confirmation provided by the Hanoi Social Insurance Department as follows:

- From August 1997 to March 2003 (68 months), contributing social insurance based on a monthly salary of 800 USD (using the VND/USD exchange rate in December 2003, the date of the recovery decision):

15,500 VND x 800 (USD) x 68 (months) x 5% = 42,160,000 VND.

- From August 1997 to March 2003, calculating social insurance contributions based on rank salary, seniority allowance, and position as follows:

* From August 1997 to September 2000 (38 months), with a salary coefficient of 4.80, seniority allowance of 21%, position allowance of 0.40, and minimum wage of 290,000 VND (at the time of the recovery decision):

(290,000 VND x 4.80 x 1.21 + 290,000 VND x 0.4) x 38 (months) x 5% = 3,420,608 VND

* From October 2000 to March 2003 (30 months), with a salary coefficient of 5.05, seniority allowance of 23%, position allowance of 0.4, and minimum wage of 290,000 VND

(290,000 VND x 5.05 x 1.23 + 290,000 VND x 0.4) x 30 (months) x 5% = 2,876,002 VND.

Total: 3,420,608 VND + 2,876,002 VND = 6,296,610 VND

- The Military Social Insurance Department and the Decision to recover the difference for Comrade Quang is:

42,160,000 VND - 6,296,610 VND = 35,863,390 VND.

Example 17: Comrade Tran Van Hung joined the military in September 1977, was promoted to Major with a salary coefficient of 4.80 in September 1994, and was transferred to serve as Deputy Director of Joint Venture A of a military enterprise with foreign countries (equivalent to a position with a coefficient of 0.4) with a fixed monthly salary of 600 USD from June 1995. However, from June 1995 to December 2000, he contributed to social insurance in Dong Nai Province at a fixed rate based on a salary coefficient of 3.80 according to the minimum wage, and from January 2001, he contributed to social insurance based on rank salary and seniority allowance, position, and received a Social Insurance Booklet from the Dong Nai Provincial Social Insurance Department confirming the contribution amount and period.

The Military Social Insurance Department will base its calculation of the recovery of the difference in social insurance contributions on the confirmation provided by the Dong Nai Provincial Social Insurance Department as follows:

- From June 1995 to December 2000 (67 months), contributing social insurance based on a fixed salary coefficient of 3.80:

290,000 VND x 3.80 x 67 (months) x 5% = 3,691,700 VND.

- From June 1995 to December 2000 (67 months), calculating social insurance contributions based on rank salary and position allowance coefficient of 0.40, seniority allowance of 23%:

* Contributing social insurance based on rank salary and seniority allowance:

290,000 VND x 4.80 x 1.23 x 67 (months) x 5% = 5,735,736 VND

* Contributing social insurance based on position allowance:

290,000 VND x 0.4 x 67 (months) x 5% = 388,600 VND

Total: 5,735,736 VND + 388,600 VND = 6,124,336 VND

- The Military Social Insurance Department and the Decision to recover the difference for Comrade Hung is:

6,124,336 VND - 3,691,700 VND = 2,423,636 VND.

The time that female military personnel and female public security officers take off work before and after childbirth and the time that military personnel and public security officers take off work to care for newborn adopted children shall be counted as the period of social insurance contributions for receiving social insurance benefits. During this period, the Ministry of National Defense and the Ministry of Public Security do not have to contribute 15% of their salaries and military personnel and public security officers do not have to contribute 5% of their salaries to the social insurance fund, which is guaranteed by the social insurance fund. This includes:

a. The time that female military personnel and public security officers receive salary while on maternity leave for up to five or six months and additional leave due to multiple births as stipulated in Clauses 1 and 2 Article 10 of the Social Insurance Regulations for military personnel and public security officers.

b. The time that military personnel and public security officers receive salary while on leave to care for newborn adopted children as stipulated in Article 11 of the Social Insurance Regulations for military personnel and public security officers.

The above provisions do not apply to cases where additional leave exceeds the prescribed period as stipulated in Clauses 1 and 2 Article 10 of the Social Insurance Regulations for military personnel and public security officers.

1. This Circular shall take effect fifteen days from the date of publication in the Official Gazette. The insurance regimes stipulated in this Circular shall be applied as of January 1, 2003.

Military personnel and public security officers who enjoy social insurance from January 1, 2003 onwards but have not been implemented according to Decree No. 89/2003/NĐ-CP and this Circular shall have the Ministry of National Defense Social Insurance and the Ministry of Public Security Social Insurance responsible for paying the remaining difference of one-time allowances for the beneficiaries; the provincial social insurances under the central government shall adjust the pensions for the beneficiaries and report to the Vietnam Social Security.

2. No adjustment shall be made for cases that have enjoyed social insurance benefits on or before December 31, 2002.

3. This Circular abolishes:

a. The following contents of Circular No. 29/TT-LB dated November 2, 1995 issued by the Inter-Ministerial Labor - War Invalids and Social Affairs - National Defense - Interior guiding certain implementation regulations of the Social Insurance Charter for military personnel and public security officers promulgated together with Decree No. 45/CP dated July 15, 1995 of the Government:

- Point 1, Section II, Part B.

- Point 3, Section IV, Part B.

- Point 3, Section IV, Part B.

- Point 7, Section V, Part B.

b. Circular No. 05/2000/TTLT-BLĐTBXH-BQP-BCA dated February 18, 2000 issued by the Inter-Ministry of Labor - War Invalids and Social Affairs - National Defense - Public Security guiding the implementation of Decree No. 94/1999/NĐ-CP dated September 8, 1999 of the Government amending and supplementing certain provisions of the Social Insurance Charter for officers, professional civilians, non-commissioned officers, and soldiers of the People's Army and the People's Public Security promulgated together with Decree No. 45/CP dated July 15, 1995 of the Government.

During the process of organizing and implementing, if there are any difficulties, units shall reflect them to the Inter-Ministries of National Defense - Public Security - Labor - War Invalids and Social Affairs for consideration and resolution./.