CIRCULAR

||| GUIDELINES FOR IMPLEMENTING THE SOCIAL INSURANCE REGIME FOR NATIONAL DEFENSE WORKERS AND CONTRACT LABOR IN THE ARMED FORCES

Implementing Decree No. 01/2003/NĐ-CP dated January 9, 2003 of the Government; based on Circular No. 07/2003/TT-BLDTBXH dated March 12, 2003 of the Ministry of Labor, War Invalids and Social Affairs and Guideline No. 994/BHXH-CĐCS dated April 1, 2003 of the Vietnam Social Security regarding amendments and supplements to certain articles of the Social Insurance Regulation issued together with Decree No. 12/CP dated January 26, 1995 of the Government;
based on the situation of implementing social insurance in the armed forces, the Ministry of National Defense guides the implementation of the social insurance regime for national defense workers and contract labor as follows:

I. APPLICABLE OBJECTS

The subjects applying for mandatory social insurance in the armed forces include:

1. National defense workers.

2. Workers employed under fixed-term labor contracts of at least three months and indefinite-term labor contracts (collectively referred to as contract labor) in units, agencies, and enterprises, specifically as follows:

a) Contract labor with quotas from the General Staff in units, agencies, and enterprises.

b) Other contract labor (authorized recruitment levels) in military enterprises, joint-stock companies, and self-financing public institutions.

3. Contract labor working in units, agencies, and enterprises mentioned in Point 2 above, working under fixed-term labor contracts of less than three months, when such contracts expire and the worker continues working or enters into a new contract with the unit, agency, or enterprise, must participate in mandatory social insurance.

4. National defense workers and contract labor specified in Points 1, 2, and 3 above, if sent by the unit, agency, or enterprise to study, intern, work, or recuperate domestically or abroad while still receiving wages or remuneration from the unit, agency, or enterprise, or if they go to work abroad for a limited period organized and managed by military units, agencies, or enterprises, shall also be subject to mandatory social insurance.

II. SOCIAL INSURANCE REGIMES

National defense workers and contract labor as specified in Section I above shall implement the social insurance regimes prescribed in Decree No. 12/CP dated January 26, 1995 of the Government promulgating the Social Insurance Regulation and Circular No. 06/LĐ-TBXH-TT dated April 4, 1995 of the Ministry of Labor, War Invalids and Social Affairs; Decree No. 01/2003/NĐ-CP dated January 9, 2003 of the Government amending and supplementing certain articles of the Social Insurance Regulation promulgated with Decree No. 12/CP dated January 26, 1995 of the Government and Circular No. 07/2003/TT-BLĐTBXH dated March 12, 2003, and Circular No. 08/2003/TT-BLĐTBXH dated April 8, 2003 of the Ministry of Labor, War Invalids and Social Affairs.

III. COLLECTION OF SOCIAL INSURANCE

Implement the collection of social insurance for national defense workers and contract labor according to Circular No. 58/TC-HCSN dated July 24, 1995 of the Ministry of Finance.

IV. IMPLEMENTATION

1. Collection of arrears of social insurance for the subjects specified in Points 2 and 3 of Section I above, as follows:

1.1. Time of collection of arrears of social insurance:

Based on Decree No. 165/HĐBT dated May 12, 1992 of the Council of Ministers detailing the implementation of the Labor Contract Law; Decree No. 12/CP dated January 26, 1995 of the Government; Circular No. 06/LĐ-TBXH-TT dated April 4, 1995 of the Ministry of Labor, War Invalids and Social Affairs; Decree No. 01/2003/NĐ-CP dated January 9, 2003 of the Government amending and supplementing certain articles of the Social Insurance Regulation promulgated with Decree No. 12/CP dated January 26, 1995 of the Government and Circular No. 07/2003/TT-BLĐTBXH dated March 12, 2003, the time of collection and the subjects of collection of arrears of social insurance to calculate social insurance benefits are as follows:

a) From April 1, 1993: Those working under indefinite-term labor contracts and fixed-term labor contracts of one year or more.

b) From January 1, 1995: Those working under fixed-term labor contracts of at least three months.

c) From January 1, 2003: Those working under fixed-term labor contracts of less than three months, when such contracts expire and the worker continues working or enters into a new labor contract with the unit, agency, or enterprise.

d) The time and subjects of collection of arrears of social insurance are based on the labor contract signed with the unit, agency, or enterprise at the time of collection and the provisions in items a, b, and c above.

1.2. The amount of collection of arrears of social insurance is 20% of the monthly salary, including 15% paid by the employer and 5% paid by the employee, based on the monthly salary including grade and rank pay, position allowance, regional allowance, hardship allowance, and retained difference allowance (if any), calculated on the minimum wage level for each period as stipulated by the Government or the salary agreed upon in the labor contract. In cases where the contract labor's wage or salary recorded in the labor contract is lower than the minimum wage, the lowest basis for calculating the arrears of social insurance must be equal to the minimum wage at that time.

1.3. The basis for collecting arrears of social insurance is the recruitment decision, labor contract, other related files, and the list registered by the unit with the higher financial authority for social insurance payment. The period of participation in social insurance is counted from the time of collection of arrears of social insurance.

1.4. Cases where registration for social insurance payment with the local tax authority (from December 31, 1994) was made but not fully paid according to regulations can now be collected based on the tax authority's debt notice; if previously social insurance was paid to the tax authority or the local social security office, proof will serve as the basis for issuing a social insurance book for the subjects (with attached lists and certificates).

2. Responsibilities of units, agencies, and enterprises:

2.1. Responsibilities of units, agencies, and enterprises at the regiment level and equivalent or higher:

a) For defense workers and contractual employees with quotas set by the General Staff: proceed to enter into labor contracts, establish social insurance books, and implement social insurance collection and payment procedures in accordance with current regulations.

b) For contractual employees as stipulated in paragraph b point 2 Section I above, as follows:

b.1) Annually, based on assigned work plans, heads of revenue-generating public institutions and enterprises with recruitment needs for contractual employees shall report to their immediate superiors regarding the number, list, and criteria of contractual employee candidates meeting job requirements. Upon obtaining approval from the competent authority, they shall be responsible for entering into labor contracts, establishing social insurance books, and implementing social insurance benefits including social insurance and health insurance collections and payments according to current regulations.

b.2) Based on the list of proposed back payments for social insurance, the head of the unit shall issue a letter explaining the reasons for delayed or insufficient social insurance payments and request higher authorities to consider and resolve the matter, while simultaneously compiling a list of back payments for social insurance with confirmation from the superior military and financial agencies (Form No. 01/TrT-BHXH).

c) Quarterly, revenue-generating public institutions and enterprises shall be responsible for reporting the list of social insurance collections for contractual employees to the Policy Department - Political General Department for the purpose of resolving social insurance benefits.

2.2. Responsibilities of the lead units of the Ministry of National Defense:

a) The commanding officer of the lead unit of the Ministry of National Defense shall be responsible for strictly directing the organization of recruitment, signing of labor contracts, and implementation of social insurance benefits for defense workers and contractual employees within their units in accordance with current regulations; directing the organization of inspections on social insurance implementation for defense workers and contractual employees in subordinate units, agencies, and enterprises to ensure the rights of those participating in social insurance.

b) The Policy Office shall take the lead, in collaboration with the finance, military, and labor wage organizations (if applicable), to guide the execution of labor contracts, issuance of social insurance books, and social insurance collections and payments for eligible individuals. At the same time, compile a comprehensive report on lists of proposed back payments for social insurance (if any) regarding the number of participants in social insurance and the amount already back-paid, and send it to the Policy Department - Political General Department, the Military Affairs Department - General Staff for confirmation (Form No. 02/TrT-BHXH). The finance office shall be responsible for collecting and back-paying social insurance to the Military Social Insurance Fund (through the Finance Department - Ministry of National Defense) fully and timely as prescribed.

2.3. Military Affairs Department - General Staff:

a) Direct and guide lead units of the Ministry of National Defense with units, agencies, and enterprises requiring recruitment of contractual employees to strictly adhere to the signing of labor contracts and implementation of social insurance benefits in accordance with state and Ministry of National Defense regulations.

b) Take the lead, in coordination with relevant functional agencies, to inspect and supervise the recruitment of contractual employees by units, agencies, and enterprises to ensure that workers meet the required standards for job performance.

2.4. Finance Department - Ministry of National Defense:

a) Guide units in timely and full collection, back-payment, and payment of social insurance benefits as prescribed.

b) Take the lead, in coordination with the Policy Department - Political General Department, to direct the implementation of social insurance collections and back-payments, and financial settlement of social insurance for defense workers and contractual employees in accordance with prescribed principles, systems, and timelines; ensuring timely and full benefits for beneficiaries.

2.5. Policy Department - Political General Department:

a) Take the lead, in coordination with the Finance Department - Ministry of National Defense, to guide lead units of the Ministry of National Defense in implementing social insurance benefits for defense workers and contractual employees in accordance with state regulations, ensuring the rights of beneficiaries.

b) Issue social insurance books for defense workers and contractual employees in accordance with current regulations. In cases where back payments for social insurance are required, after receiving confirmation of back payments from the Finance Department - Ministry of National Defense, proceed to issue social insurance books and resolve social insurance benefits for workers.

c) Annually, based on the issuance of social insurance books by lead units of the Ministry of National Defense, notify the Finance Department - Ministry of National Defense so that the Finance Department can use this as a basis for settling social insurance collections by units.

d) Take the lead, in coordination with relevant functional agencies and Vietnam Social Security, to conduct inspections and supervision of the implementation of social insurance by units, agencies, and enterprises throughout the military.

V. EFFECTIVE DATE

This Circular takes effect fifteen days after its publication in the Official Gazette. All previous provisions contrary to this Circular are hereby abolished.

During the implementation process, if there are any difficulties, units shall promptly reflect them to the Ministry of National Defense for research and resolution./.