Decision No. 51/2018/QD-TTg On management costs for social insurance, unemployment insurance, and health insurance for the period 2019-2021

Pursuant to …;

On management costs for social insurance, unemployment insurance, and health insurance during the period 2019-2021

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Social Insurance Law dated November 20, 2014;

Pursuant to the Labor Law on November 16, 2013;

Pursuant to the Health Insurance Law on November 14, 2008 and the Law Amending and Supplementing Certain Provisions of the Health Insurance Law on June 13, 2014;

Pursuant to the Labor Safety and Health Law dated June 25, 2015;

Pursuant to Resolution No. 528/2018/UBTVQH14 dated May 26, 2018 of the Standing Committee of the National Assembly on management costs for social insurance and unemployment insurance during the period 2019-2021;

At the proposal of the Minister of Finance;

The Prime Minister issues this Decision on management costs for social insurance (including work injury and occupational disease insurance), unemployment insurance, and health insurance during the period 2019-2021.

Article 1. Scope of Regulation and Applicability

1. This Decision stipulates management costs for social insurance (including work injury and occupational disease insurance), unemployment insurance, and health insurance during the period 2019-2021.

Article 2. The subjects to which this Decision applies include:

a) Units under the Vietnam Social Security;

b) Social Security of the Ministry of National Defense, Social Security of the Ministry of Public Security;

c) Agencies and organizations under the Ministry of Labor, Invalids and Social Affairs assigned to organize the implementation of tasks related to receiving applications, processing social security benefits for work injury and occupational diseases, unemployment insurance, and other tasks related to managing and using the work injury and occupational disease insurance fund and unemployment insurance fund.

Article 2. Management Costs for Social Insurance, Unemployment Insurance, and Health Insurance during the Period 2019-2021

1. The level of management costs for social insurance, unemployment insurance, and health insurance according to Clause 1, Article 2 of Resolution No. 528/2018/UBTVQH14 dated May 26, 2018 of the Standing Committee of the National Assembly is specified as follows:

a) The level of management costs for social insurance in 2019 is 2.15%, in 2020 is 2.0%, and in 2021 is 1.85% of the budget estimate for social insurance revenue and expenditure (excluding the amount spent on health insurance for those receiving social insurance benefits) extracted from the profit of investment activities from the social insurance fund;

b) The level of management costs for unemployment insurance in 2019 is 2.15%, in 2020 is 2.0%, and in 2021 is 1.85% of the budget estimate for unemployment insurance revenue and expenditure (excluding the amount spent on health insurance for those receiving unemployment insurance benefits) extracted from the unemployment insurance fund;

c) The level of management costs for health insurance in 2019 is 4.6%, in 2020 is 4.2%, and in 2021 is 3.8% of the budget estimate for health insurance premium revenue extracted from the health insurance revenue but not exceeding the maximum limit prescribed by the Health Insurance Law;

d) In cases where the actual collection and expenditure of social insurance, unemployment insurance in a year does not meet the budget estimate or exceeds it, the management cost level according to the ratio prescribed in points a and b of this clause shall be calculated based on the actual collection and expenditure. In cases where the actual collection of health insurance premiums in a year does not meet the budget estimate or exceeds it, the management cost level according to the ratio prescribed in point c of this clause shall be calculated based on the actual collection.

The actual collection and expenditure of social insurance, unemployment insurance, and health insurance from state budget sources shall be calculated based on the participating subjects, beneficiaries, contribution rates, and subsidy amounts as prescribed by law.

The Minister of Finance shall determine the management cost level based on the annual settlement report of the Vietnam Social Security that has been approved by the Vietnam Social Security Management Council, and report the results to the Prime Minister.

đ) For the budgeted management cost allocated for the year, units shall use and settle accounts according to the prescribed regulations. Any excess between the budgeted management cost allocation and the management cost level calculated based on the actual collection and expenditure shall be deducted from the next year's management cost budget.

2. Within the scope of funds ensuring the management cost for social insurance, unemployment insurance, and health insurance as prescribed in Clause 1 of this Article, the structure of expenditure tasks is defined as follows:

a) Information technology application and development investment expenses shall be at least 18% (including the temporary advance from the health insurance contingency fund for information technology services during the period 2016-2018 to implement the interconnection system between the social security agency and healthcare facilities to improve administrative procedures in healthcare, enhance the effectiveness of health insurance claim review, and manage and use the health insurance fund as prescribed in Resolution No. 68/2013/QH13 dated November 29, 2013 of the National Assembly on accelerating the implementation of policies and laws on health insurance towards universal health coverage);

b) Operating expenses for agencies and units shall be up to 36%;

c) Expenses for implementing tasks related to policy dissemination and legal education; participant and beneficiary development and management; professional training and capacity building; administrative reform; revenue and expenditure organization; inspection and supervision of social insurance, unemployment insurance, and health insurance shall be up to 46%.

In cases where it is necessary to adjust the structure of expenditure tasks due to objective reasons, the Vietnam Social Security shall clearly state the reasons and report to the Ministry of Finance for consolidation and reporting to the Prime Minister.

3. Annually, the Vietnam Social Security shall propose specific expenditure levels (detailed for the Vietnam Social Security, Social Security of the Ministry of National Defense, Social Security of the Ministry of Public Security, and the Ministry of Labor, Invalids and Social Affairs) based on the provisions of Clauses 1 and 2 of this Article and actual needs, submit them to the Vietnam Social Security Management Council for approval, and send them to the Ministry of Finance for consolidation and submission to the Prime Minister for decision-making on the budget allocation.

Article 3. The level of salary expenditure for cadres, civil servants, public officials, and workers

1. The level of salary expenditure for cadres, civil servants, public officials, and workers shall be 1.8 times the salary system prescribed by the State for cadres, civil servants, and public officials, applicable to the following subjects within the authorized staffing quota or approved job positions:

a) Cadres, civil servants, public officials, and workers working in units directly under the Vietnam Social Security;

b) Workers employed under labor contracts in the social security organizations of the Ministry of National Defense and the Ministry of Public Security (applicable only to independent budgetary social security organizations with their own seals and separate accounts, and organizational accounting systems in accordance with the law on accounting);

c) Workers implementing unemployment insurance policies in local employment service centers and unemployment insurance organizations directly under the Ministry of Labor, Invalids, and Social Affairs.

2. The additional salary increase of 0.8 times as stipulated in Clause 1 of this Article (excluding allowances for official duties, seniority, responsibility, education incentives, attraction in particularly difficult economic and social areas, night work, and overtime) shall not be used to calculate contributions or benefits for social insurance, health insurance, unemployment insurance, trade union fees, and will cease upon implementation of the salary reform according to Resolution No. 27-NQ/TW dated May 21, 2018 of the Seventh Plenary Session of the Central Committee of the Communist Party of Vietnam's Twelfth Congress on salary policy reform for cadres, civil servants, public officials, armed forces, and workers in enterprises.

Article 4. Effective date

This Decision takes effect from February 10, 2019 and applies to the fiscal years from 2019 to 2021.

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. The Minister of Finance shall be responsible for supervising the implementation of this Decision in accordance with the regulations. In the second quarter of 2021, the Ministry of Finance shall take the lead and coordinate with the Vietnam Social Security and relevant ministries and sectors to summarize and evaluate the results of implementing this Decision and report to the Government for the Standing Committee of the National Assembly to decide on the management costs for social insurance, unemployment insurance, and health insurance for the next phase.

2. The Minister of Labor, Invalids, and Social Affairs shall be responsible for directing and guiding provincial labor, invalids, and social affairs departments and local employment service centers to organize the implementation of tasks related to receiving applications, promptly resolving labor accident insurance, occupational disease insurance, and unemployment insurance benefits; conducting information dissemination, publicity, inspection, supervision, and other tasks related to the management and use of funds for labor accident insurance, occupational disease insurance, and unemployment insurance, ensuring the effectiveness of management costs is linked to procedural reforms and improved service quality, facilitating employers and workers.

3. The General Director of the Vietnam Social Security shall be responsible for directing and guiding units directly under the Vietnam Social Security, the Social Security of the Ministry of National Defense, and the Social Security of the Ministry of Public Security to organize the implementation of tasks ensuring the effectiveness of management costs is linked to the development of social insurance, unemployment insurance, and health insurance participants, procedural reforms, and improved service quality, facilitating agencies, units, and citizens; organizing the social security organizational structure based on job positions, suitable to assigned tasks, and implementing staff reduction according to regulations.

4. The Ministers of Finance, Labor, Invalids, and Social Affairs, Health, Planning and Investment, Home Affairs; the General Director of the Vietnam Social Security, and heads of relevant agencies are responsible for enforcing this Decision./.