Circular No. 3-TS/TT guiding the implementation of social insurance for members of fisheries cooperatives

CIRCULAR

OF THE MINISTRY OF AQUATIC RESOURCES NUMBER 3-TS/TT ON SEPTEMBER 19, 1985
GUIDELINES FOR IMPLEMENTING SOCIAL INSURANCE REGIMES FOR COLLECTIVE ECONOMY MEMBERS IN FISHERIES COOPERATIVES (1)
MEMBERS OF THE FISHERY COOPERATIVE SOCIETY (1)

Since 1968, the General Department of Fisheries (now the Ministry of Aquatic Resources) has issued temporary regulations on labor injury and war accident allowances within fisheries cooperatives.

Under the guidance of provinces and districts, most fisheries cooperatives in the Northern region and some in the Southern region have gradually implemented these regulations, initially ensuring essential social insurance benefits for cooperative members.

Currently, the movement towards collective fishery operations is experiencing new developments and expanding nationwide, creating favorable conditions to implement social insurance regimes at a higher level within cooperatives. The implementation of social insurance regimes within cooperatives will meet the legitimate demands and heartfelt aspirations of cooperative cadres and members, aiming to encourage members to be more dedicated and enthusiastic about production, thereby strengthening the construction of cooperatives. Based on Article 59 of the Constitution of the Socialist Republic of Vietnam: "The State guides cooperatives to gradually implement social insurance regimes for members...", Clause 3, Chapter I, Clause 7, Chapter II, Clause 25, Clause 26, Chapter VI of the Fisheries Cooperative Regulations promulgated by Decree No. 51-HĐBT dated March 17, 1982 of the Council of Ministers regarding the implementation of social insurance regimes in cooperatives.

In accordance with Resolution 8 of the Central Committee of the Party (Fifth Term), it is necessary to eliminate the centralized bureaucratic rationing mechanism, properly implement the system of centralized democracy, economic accounting, and socialist business operations.

The Ministry of Aquatic Resources issues this Circular to officially guide the implementation of social insurance allowance systems uniformly applicable in fisheries cooperatives and production groups (hereinafter referred to as cooperatives) as follows:

I. OBJECTIVES, SIGNIFICANCE, PRINCIPLES AND SUBJECTS
IMPLEMENTATION OF SOCIAL INSURANCE REGIMES IN COOPERATIVES

1. Purpose and Significance.

Implementing social insurance regimes in cooperatives demonstrates the superiority of the socialist system, ensuring that cooperative members and production group members (hereinafter referred to as members) who have worked long-term in cooperatives when they become elderly, retire, suffer from work-related injuries, childbirth, illness... can enjoy social insurance benefits; aiming to alleviate some difficulties in their lives, allowing members to be more dedicated and enthusiastic about production, strengthen the construction of cooperatives, contributing to consolidating the socialist mode of production; while enhancing the awareness of collective ownership among members, recognizing their rights and obligations in contributing to the cooperative's social insurance fund.

2. General Principles:

- The source of the social insurance allowance fund in cooperatives is contributions from members and allocations from the cooperative's public welfare fund.

- Social insurance allowances for members are based on the principle of distribution according to labor, not average distribution but rather based on individual contributions, service time, technical grade wages, or job grade; simultaneously combining with the principle of socialist mutual assistance within the cooperative.

- The level of allowance must be lower than working wages to encourage those still directly engaged in production.

3. Subjects of Implementation.

- All individuals who have full member qualifications and fully contribute to the cooperative's social insurance fund are subjects of implementation.

- Members dispatched for management, technical, vocational training, military service, treatment, rehabilitation due to illness, accidents... but still retain shares in the cooperative, upon returning to the cooperative, are recognized as having full member qualifications and are also subjects of implementation.

- Individuals without member qualifications, removed from the cooperative, imprisoned, or voluntarily leaving the cooperative without justifiable reasons... are not subjects of implementation of social insurance allowance regimes.

II. SOCIAL INSURANCE ALLOWANCE REGIMES

1. Illness Leave Allowance Regime.

a. Members suffering from illness and unable to work must be confirmed by the production unit, management board, and health services.

If required to take leave for up to five days (for shore-based workers) or not exceeding one fishing trip (for sea-based workers), they shall be covered by the production unit for 50-70% of their basic planned wage during the illness leave period.

When ill, members may receive medical examination and medication from the cooperative's health service according to the cooperative's pharmacy stock capacity.

If hospitalization is required, the cooperative shall cover the costs of medications and transportation.

b. In cases of prolonged illness rendering them incapable of work, confirmed by the general assembly of members and health services, they shall be eligible for other benefits as stipulated in Point 4, Section II of this Circular.

c. After illness leave, if their health deteriorates, the cooperative shall arrange suitable work based on specific circumstances. If the new job pays less and the family is in financial difficulty, the cooperative shall primarily seek additional work for the family and may provide assistance from the public welfare fund based on its capacity.

2. Maternity Leave Allowance Regime:

- Female members generally receive three months of maternity leave. Specifically, female members directly involved in fishing receive six months of leave, with three months arranged for suitable land-based work.

- Female members adhering to the planned birth policy (having one to two children) receive 100% of their basic planned wage during maternity leave. Those exceeding the planned number of births do not qualify for maternity leave benefits.

- In cases of miscarriage or abortion, leave is granted based on individual health conditions, with up to 15 days of leave covered at 100% of the basic planned wage.

- Female members during menstruation are assigned suitable work and receive their full basic planned wage for their previous job.

3. Retirement Allowance Regime:

a. Conditions for Retirement:

Two conditions must be met:

- Age: male members must be 60 years old, female members 55 years old. For direct fishing members engaged in heavy, hazardous, or dangerous jobs such as lamp lighters (fishing with lights), divers (bottom fishing, lobster diving, etc.), shark and ray fishing... retirement age is reduced to 55 if in poor health, subject to review for retirement eligibility.

- A period of at least 25 years of work, specifically for heavy, hazardous, and dangerous jobs listed above, a period of 20 years is required, including at least 10 years working in such heavy, hazardous, and dangerous jobs.

Members meeting the above two conditions must submit a resignation application to the management board to complete the necessary procedures for reporting to the member assembly for review. In cases where health is still good, capable of working, and the cooperative requests it while the member voluntarily agrees, they may continue production and work for a certain period of time.

b. Monthly allowance level:

From the date of retirement decision, members shall receive a monthly allowance equivalent to 30 to 40% of the actual grade wage implemented based on the annual production and business results of the cooperative (referred to as the actual grade wage implemented) and any additional allowances if applicable.

In special cases due to objective difficulties, where the cooperative's production and business operations result in losses and there is no income from labor wages, retired members shall also be entitled to allowances, with the minimum allowance being sufficient to purchase 10 kilograms of staple food.

If the period of work exceeds the prescribed limit, for each year exceeded, an additional allowance not exceeding 0.2 months of the planned grade wage of that person before retirement shall be granted, and this additional allowance shall be claimed once.

Specifically, for cadres and members who have made contributions to the construction and consolidation of the cooperative recognized by the member assembly, in addition to the general allowance, they shall also be entitled to a one-time special allowance, with the maximum amount not exceeding 2 months of the planned grade wage of that person before retirement.

4. Disability Allowance System:

a. Conditions for disability retirement:

- Members who are elderly, past their working age (men aged 60, women aged 55), but do not meet the conditions for retirement benefits, recognized by the member assembly, shall be entitled to disability retirement benefits.

- Members suffering from prolonged illness, accidents (not during duty performance), or war injuries confirmed by authorized medical authorities as unable to work, recognized by the member assembly, shall be entitled to disability retirement benefits.

b. Level of Allowance:

- Monthly allowance:

Members who have worked for at least 15 years before retiring due to disability shall receive a monthly allowance equivalent to 20% of the actual grade wage implemented.

For members who have worked more than 15 years, each additional year worked will increase the allowance by 1%, but the maximum level shall not exceed 30% of the actual grade wage implemented.

Members retiring due to disability shall receive monthly allowances as stipulated above. If they have not yet reached the retirement age, every two years, they must be reviewed by the member assembly to make specific decisions for each individual. If a member has recovered but does not return to work as requested by the cooperative, the cooperative will cut off the allowance and reassess their membership status.

- One-time allowance:

Members who do not meet the conditions for monthly allowances shall be entitled to a one-time allowance as follows: for those who have worked less than 15 years, each year worked will be counted towards an allowance not exceeding half a month of the planned wage before retirement. The cooperative will pay out once or in installments depending on its financial capability and specific conditions.

5. Work Injury Allowance System:

a. Conditions for Entitlement to Allowances:

Members, trainees, or those working under contracts within the cooperative who suffer work-related injuries, war injuries during production and work, combat participation, or courageous actions saving people or property of the State or the cooperative, recognized by the member assembly, shall be entitled to these allowance benefits.

b. Level of Allowance:

- Members who suffer injuries shall receive a 100% planned wage allowance during hospital treatment or home convalescence. The first month is covered by the unit, from the second month onwards, the cooperative covers the cost and pays for medicine and transportation expenses. After treatment, if their health deteriorates and they cannot perform their previous job, the cooperative will arrange suitable new work according to their health condition. If the new job has lower income, they may be eligible for a one-time allowance of 1 to 3 months of the planned wage, depending on the severity of the injury and their economic circumstances.

- Trainees and contract workers who suffer injuries shall also be provided with transportation and medical expenses during treatment by the cooperative and may be eligible for a one-time allowance not exceeding 2 months of the planned wage or contract wage, depending on the severity of the injury and their economic circumstances.

- The provision of allowances to members, trainees, and contract workers must ensure preferential treatment for those who courageously save people or property of the State or the cooperative. The allowance level must be higher than that for other injured individuals.

- In cases where members are no longer capable of working, confirmed by authorized medical authorities and recognized by the member assembly, but their working period is less than 15 years and they do not meet the conditions for retirement benefits or monthly disability allowances, they shall be entitled to a monthly allowance ranging from 10 to 20% of the actual grade wage implemented. For members who have worked for 15 years or more and meet the conditions for monthly disability allowances or retirement benefits, an additional 3 to 5% of the actual grade wage implemented shall be added.

For members who suffer work-related injuries or war injuries not during duty performance, all medical expenses during treatment must be considered based on specific circumstances and the current fund capacity of the cooperative, and partial allowances shall be granted accordingly.

6. Allowance System When a Member Dies:

Members who die while working, after retirement, due to disability (receiving monthly allowances), illness, old age, work-related injuries, or war injuries shall have their funeral costs covered by the cooperative, including coffin, mourning cloth, incense, and flowers.

If the family is in difficult financial circumstances, the cooperative shall provide additional assistance based on its public welfare fund capacity, with the maximum allowance not exceeding 2 months of the planned wage of that person.

For those who died courageously during production and combat (including members, trainees, and contract workers), in addition to funeral allowances, the cooperative shall provide a one-time allowance to the family, with the maximum allowance not exceeding 6 months of the planned wage of the deceased.

For state officials, workers, or employees who have retired and are receiving regular social insurance benefits from the State, if they die while working in a cooperative, the cooperative shall use its public welfare fund to purchase incense and flowers for condolences and to visit their families.

III. MANAGEMENT OF THE SOCIAL INSURANCE FUND

1. Management of the social insurance fund.

- The Cooperative Management Board has the responsibility to manage the social insurance fund uniformly and to implement social insurance benefits for members in accordance with the prescribed regulations.

- The social insurance fund of the cooperative must be managed strictly according to the principle of democratic centralism and financial transparency, and must be recorded clearly and fully in accordance with the prescribed accounting system.

Mixing funds for different purposes is not allowed; at the same time, actions of embezzlement and misusing the social insurance fund for personal gain must be prevented.

- To create a growing source of income for the cooperative's social insurance fund, when the social insurance fund is not being used, it may open a separate account at a bank to earn interest, and the bank shall not deduct the cooperative's debt from the social insurance fund. Alternatively, the cooperative may use part of the social insurance fund for production and business activities but must ensure an increase in income for the social insurance fund and meet the timely requirements for social insurance benefits when necessary.

2. Sources of income for the social insurance fund include:

a. Contributions made monthly by each member, which are deducted from at least 5% of their income.

b. Each member contributes the equivalent of one month's planned labor wage to the cooperative's social insurance fund upon joining. Those who cannot contribute immediately may do so in two or three installments with the approval of the general assembly, but the period shall not exceed one year.

c. A portion of approximately 50% of the public welfare fund.

d. Interest income from the social insurance fund.

đ. Other sources of income: money donated by members, other organizations, or proceeds from socialist labor organized by the cooperative that are added to the social insurance fund, etc.

IV. SOME POINTS TO BE NOTED

1. The social insurance fund of the fishing cooperative is established through regular contributions and initial contributions from each member, and by deducting from the cooperative's public welfare fund...

The construction of the social insurance fund of the cooperative must be carried out for at least six months before beginning to provide benefits under this system.

For cooperatives currently providing benefits to retired members or those unable to work due to health reasons, this Circular should be reviewed to establish appropriate benefit systems.

2. The implementation of the social insurance system in cooperatives does not affect participation in maritime insurance for seafarers provided by the Vietnam Insurance Company.

3. When determining the level of benefits, the length of service must be taken into account; if there are fractional months, they shall be calculated as follows:

- Less than one month is not counted.

- From one to seven months is counted as half a year.

- More than seven months is counted as a full year.

4. Those who are receiving retirement or disability benefits and are subsequently prosecuted by law or expelled from the cooperative for any reason shall have their benefits suspended.

V. IMPLEMENTATION

The Fisheries Department, Agriculture Department, and district fisheries offices need to carefully study this Circular and develop specific plans to guide its implementation for collective economic organizations in the fishing industry, including fishing cooperatives, marine and river fishery production groups, and specialized aquaculture cooperatives in their respective localities.

It is necessary to organize training sessions for members and production group members to thoroughly understand this Circular, making them aware of their rights and responsibilities in implementing the social insurance system.

The Fisheries Department and district fisheries offices need to strengthen guidance and supervision of the implementation of this system, reporting annually to the Ministry on the situation and results of implementation, and promptly reporting any issues requiring research, amendment, or supplementation to the Ministry.

This Circular replaces the "Temporary Regulations on Labor Insurance Benefits and War Casualty Benefits in Fishing Cooperatives" No. 367-TS/HTX dated March 26, 1968, and takes effect from the date of issuance.

(1) Including members of fishing cooperatives and production group members of aquaculture production groups.