Circular No. 66/2001/TT-BTC guides amendments to certain points of Circular No. 85/1998/TT-BTC dated June 25, 1998, issued by the Ministry of Finance, regarding financial management regulations for Vietnam Social Security.

CIRCULAR

Guidelines for amending certain points of Circular No. 85/1998/TT-BTC dated June 25, 1998 of the Ministry of Finance guiding the Financial Management Regulation for the Vietnam Social Security.

guiding the Financial Management Regulation for the Vietnam Social Security.

Pursuant to Decision No. 100/2001/QĐ-TTg dated June 28 2001 of the Prime Minister on amending and supplementing some Articles of the Financial Management Regulation for the Vietnam Social Security issued together with Decision No. 20/1998/QĐ-TTg dated January 26, 1998 of the Prime Minister;

The Ministry of Finance guides the amendment of Point 1, Point 2, Point 4.1 (Subsection III) and Point 4 (Subsection IV) of Part III of Circular No. 85/1998/TT-BTC dated June 25, 1998 of the Ministry of Finance guiding the Financial Management Regulation for the Vietnam Social Security as follows:

I. Regarding regular management expenses of the Vietnam Social Security system:

1. Regular management expenses of the Vietnam Social Security system are taken from the interest earned from implementing investment activities to increase the social insurance fund and calculated at 4% of the actual annual social insurance revenue. This ratio applies in 2001-2002.

Regular management activity expense items (with detailed tables attached) include scientific research costs, training and retraining costs; they do not include large-scale fixed asset repair costs, car purchase costs, and asset purchases under investment projects.

2. Regular management activity expenses of the Vietnam Social Security are implemented according to the following principles:

- The total regular management expenses of the entire sector shall not exceed 4% of the actual annual social insurance revenue.

- Ensuring fairness and rationality among subordinate units.

- Expense levels are tied to tasks and are appropriate to the characteristics and conditions of each unit's operations.

- Prioritizing funds for improving work quality and efficiency and supplementing salaries for staff based on results achieved, but not on an average basis.

3. Annually, based on the social insurance revenue plan, the Vietnam Social Security simultaneously prepares a corresponding regular management expense budget from the 4% allocated funds, submitting it for approval by the Management Council as a basis for implementation.

The Vietnam Social Security may temporarily allocate funds from the social insurance fund to provide operating funds for units. At year-end, based on the actual total social insurance revenue of the sector, the total amount of management expenses for the entire sector is determined; the Vietnam Social Security uses the interest earned from investment activities to increase the social insurance fund during the year to repay the management expenses temporarily allocated from the social insurance fund.

In cases where revenue does not meet the initial budget, the Vietnam Social Security must reduce expenses accordingly in the year or transfer the reduction to the next year's budget.

4. If the Vietnam Social Security completes its tasks, increases revenue, and saves on regular management expenses, the surplus funds (the allocated 4% minus actual expenses) will be used to supplement the following expenses:

a. Supplementing wages and remuneration for workers throughout the sector based on the degree of task completion, but the maximum income shall not exceed twice the current state-prescribed salary fund. The salary fund is determined as follows:

- Basic salary according to rank and grade of officials and civil servants within the total number of positions announced by the Government Personnel Board, stipulated in Decree No. 25/CP dated May 23, 1993 of the Government and the general minimum wage set by the Government.

- Position allowances, regional allowances, and hazardous job allowances.

- Additional salary increments for officials and civil servants due to promotion based on years of service.

b. Paying wages and remuneration for contractual workers when necessary to ensure task completion.

c. Supplementing the two reward and welfare funds up to three months' average actual salary of the entire sector.

d. Supplementing additional assistance to workers in the system when implementing labor adjustment policies and reducing staffing according to state regulations.

e. Any remaining amount (if any) after allocating the above four items will be transferred to the next year's budget for allocation and continued use.

5. The State manages the staffing of officials and civil servants in the Vietnam Social Security system's management framework (announced by the Government Personnel Board). The Vietnam Social Security can independently organize and recruit labor according to the Labor Code to meet work needs.

6. Contributions and benefits under social insurance and health insurance schemes for officials and civil servants in the Vietnam Social Security sector are calculated based on the salary coefficient stipulated in Decree No. 25/CP dated May 23, 1993 of the Government and the general minimum wage set by the Government.

II. On the allocation and use of profits from investment activities to increase the social insurance fund:

Profits from investment activities to increase the social insurance fund are allocated and used as follows:

1. Allocating 50% to supplement the social insurance fund for preservation and growth.

2. Allocating funds for regular management expenses of the Vietnam Social Security system at 4% of the actual annual social insurance revenue.

3. Allocating two reward and welfare funds equal to three months' average actual salary of the entire sector.

4. The remainder is used to supplement the capital for constructing facilities for the entire Vietnam Social Security system.

In addition to this source of funding, annually, the Vietnam Social Security receives balanced budget allocations from the State Budget for investment in facility construction for the system according to approved projects.

This Circular takes effect from January 1, 2001. During implementation, if there are difficulties, please report to the Ministry of Finance for consideration and resolution./.