Decision No. 37/2012/QD-TTg On piloting the level of expenditure for salary and income for the Vietnam Social Security sector during the period 2012-2015

Pursuant to …;

On implementing a pilot program for salary and income expenditure levels for the Vietnam Social Security sector from 2012 to 2015

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Thrift and Combating Wastefulness dated November 29, 2005;

Pursuant to the Social Insurance Law dated June 29, 2006;

Pursuant to the Health Insurance Law dated November 14, 2008;

Pursuant to Circular No. 45/UBTVQH13 dated October 27, 2011 of the Standing Committee of the National Assembly regarding salary and income systems for officials, civil servants, and public employees in the Vietnam Social Security sector;

At the proposal of the Minister of Finance;

The Prime Minister issues this Decision on implementing a pilot program for salary and income expenditure levels for the Vietnam Social Security sector from 2012 to 2015,

Article 1. Scope of Regulation

Implementing a pilot program for salary and income expenditure levels for the Vietnam Social Security sector from 2012 to 2015.

Article 2. Applicability

1. Pilot subjects for salary expenditure levels include:

a) Civil servants, public employees, and workers under labor contracts in units directly subordinate to the Vietnam Social Security;

b) Workers under labor contracts who have been assigned salaries according to Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government working in social insurance organizations established according to Clause 1, Article 48 of Decree No. 68/2007/NĐ-CP dated April 19, 2007 of the Government detailing and guiding the implementation of certain provisions of the Law on Social Insurance concerning mandatory social insurance for military personnel, police officers, and those engaged in confidential work with salaries equivalent to those of military personnel and police officers;

c) Civil servants, public employees, and workers under labor contracts in units within the labor sector tasked with organizing the implementation of unemployment insurance policies according to Decree No. 127/2008/NĐ-CP dated December 12, 2008 of the Government detailing and guiding the implementation of certain provisions of the Law on Social Insurance concerning unemployment insurance.

2. Pilot subjects for additional income expenditure levels include:

a) Subjects specified in Clause 1 of this Article;

b) Officers, professional military personnel, non-commissioned officers, soldiers, and workers receiving salaries equivalent to those of military personnel and police officers working in social insurance organizations established according to Clause 1, Article 48 of Decree No. 68/2007/NĐ-CP dated April 19, 2007 of the Government detailing and guiding the implementation of certain provisions of the Law on Social Insurance concerning mandatory social insurance for military personnel, police officers, and those engaged in confidential work with salaries equivalent to those of military personnel and police officers.

Article 3. Content of the pilot program for salary and income expenditure levels

1. Based on the number of staff positions and the budget for management activities allocated, the salary expenditure level for the subjects specified in Clause 1, Article 2 of this Decision shall be 1.8 times the salary system for officials, civil servants, and public employees prescribed by the State (grade, rank, position, and allowances, excluding night shift and overtime allowances).

The difference between the actual salary expenditure level stipulated in this clause and the salary system for officials, civil servants, and public employees prescribed by the State shall not be used to calculate contributions or benefits for social insurance, health insurance, unemployment insurance, and trade union fees.

2. Additional income from management activity savings funds as stipulated in Clause 3, Article 9 of Decision No. 04/2011/QĐ-TTg dated January 20, 2011 of the Prime Minister on financial management for the Vietnam Social Security shall be expended as follows:

a) For the subjects specified in Clause 1, Article 2 of this Decision, the average expenditure level across the entire sector shall not exceed 0.2 times the salary system for officials, civil servants, and public employees prescribed by the State (grade, rank, position, and allowances, excluding night shift and overtime allowances);

b) For the subjects specified in Point b, Clause 2, Article 2 of this Decision, the expenditure level in each unit shall not exceed 1.0 times the salary system for officials, civil servants, and public employees prescribed by the State (rank, grade, position, and allowances).

Article 4. Source of Funding

The funds for implementing the pilot program for salary and income expenditure levels for the Vietnam Social Security sector as stipulated in this Decision shall be implemented according to Article 11 of Decision No. 04/2011/QĐ-TTg dated January 20, 2011 of the Prime Minister on financial management for the Vietnam Social Security.

State-owned enterprises that have been assigned by the Ministry of Agriculture and Rural Development to conduct offshore wind power project surveys before the effective date of this Circular shall continue to implement according to the assigned documents; any new matters arising after the effective date of this Circular shall be implemented in accordance with the provisions of this Circular.

1. This Decision takes effect from November 1, 2012 and applies to fiscal years from 2012 to 2015.

During the period of implementing the pilot program for salary and income expenditure levels as stipulated in this Decision, units shall temporarily suspend the application of Points a, Clause 1, Points a, Clause 3, and Clause 4, Article 9 of Decision No. 04/2011/QĐ-TTg dated January 20, 2011 of the Prime Minister.

2. The Vietnam Social Security has the responsibility to direct agencies and units in the sector to actively innovate, reform administrative procedures, modernize management, improve the quality and effectiveness of the cadre, civil servant, and public employee workforce to meet requirements, and continue to expand the target groups participating in and benefiting from social insurance and health insurance programs.

3. The Ministry of Finance is responsible for monitoring and supervising the implementation of the pilot program to ensure compliance with regulations. In the fourth quarter of 2015, the Ministry of Finance will take the lead, coordinate with the Vietnam Social Security and relevant ministries and sectors to organize a comprehensive review and evaluation of the results, and report to the Prime Minister.

4. Ministers: Finance, Labor - Invalids and Social Affairs, Health, Defense, Public Security; General Director of the Vietnam Social Security, and heads of related agencies are responsible for enforcing this Decision./.