Bản dịch văn bản 21-LB/TT
thong-tu-21-lb-tt
Cơ quan ban hành: Bộ Lao động - Thương binh và Xã hội
Ngày ban hành: 1994-06-18

JOINT MINISTERIAL CIRCULAR No JOINT MINISTERIAL CIRCULAR No. 21-LB/TT OF THE 18th OF JUNE, 1994, PROVIDING GUIDANCE FOR THE IMPLEMENTATION OF THE COMPULSORY SOCIAL INSURANCE REGIMES In implementation of Decree No. 43-CP on the 22nd of June, 1993 of the Government setting temporary provisions for the social insurance regimes; and after consultation with the Vietnam General Confederation of Labor and the concerned offices, the Ministry of Labor, War Invalids and Social Affairs, and the Ministry of Finance jointly issue the following guidance for the implementation of the compulsory social insurance regimes: A. OBJECTS OF REGULATION: The objects, who are compelled to buy in full the five regimes of social insurance stipulated in Point 1, Article 2 of Decree No. 43-CP on the 22nd of June, 1993 of the Government, include: I. STATE OFFICIALS AND EMPLOYEES IN ADMINISTRATIVE AND SPECIALIZED SERVICES 1. Elected personnel in State management agencies and offices of the Party and people's organizations from central to district levels; 2. State officials and employees working in State management agencies and specialized bodies of the State from central to district levels; 3. Officials, workers and employees working in offices of the Party, people's organizations and associations from central to district levels; 4. State officials and employees on assignment to communes, wards, Associations, projects and international organizations based in Vietnam. II. WORKERS AND EMPLOYEES IN ENTERPRISES, AND LABORERS IN OTHER ORGANIZATIONS 1. Workers and employees working in State enterprises, including business and service organizations of the administrative or specialized agencies and units, the armed forces and the Party, people's organizations and Associations; 2. Workers and employees working in economic units of specialized agencies; 3. Laborers who work for salary or pay in units of production, business or service in the non-State sector which employ 10 work-hands or more; 4. Vietnamese laborers in export processing zones or exclusive economic zones, joint ventures, enterprises with foreign invested capital, diplomatic missions, representative offices of international organizations or other organizations of foreigners in Vietnam. The provisions stipulated in Part A include people who are sent for training, practice, business or medical treatment at home or abroad, etc. B. REGIMES OF SOCIAL INSURANCE I. SICKNESS ALLOWANCE 1. Conditions of allowance: Laborers who take leave of absence for sickness or accidents; women laborers who have the first or second child (including legally adopted child) or, in special cases stipulated in Decision No.162-HDBT of the 18th of October, 1988 of the Council of Ministers (now the Government), the third child under 72 months of age caught by sickness which is certified in writing by the clinic of their agencies or units, or by the medical station of their communes or wards, or by a hospital or consulting room under the management of the health service. In the event that the mother dies; or is seriously crippled; or suffering from metal disorder; or has been sick for a longtime; or is away from home on business; or in the event of a divorce in which the child lives with the father, the father may take leave of absence and enjoy social welfare to take care of the sick child. The sickness allowance shall not apply to leaves which are due to self-debilitation, fist-fighting, alcoholism, or drug abuse. 2. The time a laborer may take for leave of absence and receive sickness allowance in replacement of salary: a) For employees who work in normal conditions: - 30 days in a year, if he/she has bought social insurance for less than 15 years; - 45 days in a year, if he/she has bought social insurance for 15 years or more. b) An employee who works in heavy or hazardous occupations or jobs (listed as heavy and hazardous occupations and jobs by the State): - 40 days in a year, if he/she has bought social insurance for less than 15 years; - 60 days in a year, if he/she has bought social insurance for 15 years or more; c) An employee, who suffers from a disease which requires long hospitalization, is entitled to social insurance for, at most, 180 days in a year, irrespective of the length of time covered by social insurance. In the event that the employee must continue his/her medical treatment after this maximum time allowance, during this extended period of time, he/she shall be entitled to a social insurance equal to 70% of the minimum wage level for State employees (hereafter referred to as minimum wage). The list of diseases which require long treatment, is provided for in Joint Circular No.33-TT/LB on the 25th of June, 1987 of the Ministry of Health and the Vietnam General Confederation of Labor. d) For an employee who has to take care of his/her sick child: - 15 days in a year for a child of less than 36 months of age; - 12 days in a year for a child of from 36 months to 72 months of age. 3. The allowance: The sickness allowance to be paid in replacement of the salary of an employee is equal to 75% of the salary on which he/she buys his/her social insurance prior to the leave. II. MATERNITY ALLOWANCE 1. Conditions for the allowance: All women laborers who are pregnant or give birth to their first, second and, in special cases under Decision No.162-HDBT, third child. 2. The leave on allowance: a) During the pregnancy: - The laborer is allowed three leaves on allowance for pre-natal checks, each for one day. - The expectant laborer who works in a mountainous or island area far from a health station, who is sick or whose pregnancy is abnormal, is allowed two days for each leave on allowance for pre-natal checks. - The laborer who suffers from a miscarriage, is allowed 20 days of leave on allowance if the pregnancy is less than 3 months old, or 30 days if the pregnancy is 3 months old or more. b) Confinement period: - Before and after childbirth, the laborer is allowed a total leave of 120 days if she works in normal conditions, or 150 days if she works in heavy-duty jobs or noxious occupations, or in a place where the area subsidy index is 0.7 or 1. The leave before childbirth is 30 days. If it is taken earlier than that, the total length of the leave shall not exceed the common stipulated level. - In the event of a multiple birth, the mother shall be allowed an extra 30 days of leave on allowance for each of the children from the second. - In case the new-born is dead within sixty days of birth (including still birth), the mother is allowed 75 days of leave on allowance from the date of the birth; if the new-born is dead after sixty days of birth, the mother is allowed 15 days of leave on allowance from the death of the child. In both of these stipulated cases, the total length of the maternity leave shall not exceed the common stipulated time. At the end of the stipulated time, at the request of the nursing laborer and with the consent of her employer, she may take extra leave, but for not more than 180 days, and during which time she shall not enjoy social insurance. c/ During the nursing: The laborer (male or female) who is nursing a legitimate new-born in accordance with the provisions of the Law on Marriage and the Family, shall be allowed a leave on allowance to take care of the infant until it is 120 days of age. 3. The allowance: During the maternity leave as stipulated in Point 2, the mother is entitled to maternity leave equal to 100% of the salary on which she buys her social insurance prior to the leave. Besides, at the time of confinement, the mother shall receive a one-time subsidy equal to two months of the minimum wage. In the event of a twin or multiple birth, or a post-delivery death of the mother, or the mother is banned by the health authority from breast feeding, or of rearing an infant, there shall be a subsidy equal to two months of the minimum wage to pay for the dairy milk. III. ALLOWANCE FOR LABOR ACCIDENT AND OCCUPATIONAL DISEASE 1. Allowance for labor accident: a) Conditions for allowance: - The labor accident happens to the laborer during the working hours, at the work place, including overtime work at the request of the employer; - The accident happens to the laborer on his/her travel on mission; - The accident happens to the laborer on his/her way between his/her residence and the work place; - The accident happens to the laborer when he/she is rescuing people or property of the State or the people. The size of the allowance for labor accident is decided according to the procedures currently in force. b) The allowance: - During the leave for treatment until the condition of his/her injury is stable, the laborer is entitled to an allowance equal to 100% of his/her salary prior to the labor accident and the cost of treatment (in accordance with the provisions of the Ministry of Health). This cost shall be covered by the employer. - When the condition of his/her injury is stable, the victim of the labor accident shall be sent by the social insurance organization for evaluation of his/her labor ability at the Health Evaluation Council of the level of province or city directly under the Central Government, or the Health Evaluation Council of the branch level, in accordance with the provisions of the Ministry of Health. Depending on the extent of his/her labor disability, the laborer shall receive a subsidy equal to the average wage of State employees. This wage level is double the minimum wage and is provided for as follows: + For labor disability from 5% to 60%, the allowance is given in one time as specified in the table below: Labor disability One-time allowance From 5% to 20% 4 months of minimum wage From 21% to 30% 8 months of minimum wage From 31% to 40% 12 months of minimum wage From 41% to 50% 18 months of minimum wage From 51% to 60% 24 months of minimum wage + For the laborer who suffers from labor accident or occupational disease and who is entitled to a onetime allowance, his/her employer is responsible for assigning him/her to a suitable and lasting job to help stabilize his/her life. + For labor disability from 61% to 100%, the monthly allowance is given (from the date of hospital checkout) on the basis of the disability level as specified in the table below: Labor disability Disability level Monthly Allowance From 61% to 70% 4 one month of minimum wage From 71% to 80% 3 1.2 months of minimum wage From 81% to 90% 2 1.4 months of minimum wage From 91% to 100% 1 1.6 month of minimum wage - For the victim of a labor accident who loses 81% or more of his/her labor ability and who cannot take care of his/her natural functions, due to a paralysis of the spinal column, total blindness, a loss of two limbs or a serious mental disorder, he/she shall be provided with a helper fee equal to 80% of the minimum wage. - For the victim of a labor accident who suffers from functional damage to the feet, hands, ears, eyes or the spinal column, etc., he/she shall be given a one-time provision of aiding facility to help him/her replace the lost function. - When the injury recurs, the laborer shall be treated and have it re-evaluated. - If the laborer dies of labor accident (including during the first treatment), his/her family shall be given a one-time subsidy which is equal to 24 months of minimum wage plus the death allowance as provided for in Part V of this Circular. - The recipient of one-time or monthly labor accident allowance who meets the required conditions, is still entitled to the pension stipulated in Part IV of this Circular. 2. Allowance for occupational disease: a) Conditions for allowance: The laborer who suffers from an occupational disease while doing a work, which is specified in the list of occupations provided for in Circular No.8-LB/TT on the 19th of May, 1976, and Circular No.29-LB/TT on the 25th of December, 1991, jointly issued by the Ministry of Health, the Ministry of Labor, War Invalids and Social Affairs, and the Vietnam General Confederation of Labor. b) The allowance: The salary, the cost for consultation and treatment during the treatment of the occupational disease, the provision of one-time or monthly allowance and the helper subsidy and other regimes shall apply to the laborer contracting occupational disease in the same way as to the victim of labor accident, provided for in Point (b), Item 1, Part III of this Circular. IV. PENSION 1. Monthly pension: a) Conditions for the monthly pension: The laborer is entitled to a monthly pension when he/she satisfies the following conditions: a. 1) Having purchased social insurance for a 20 years (240 months) or more: a. 2) Having reached 60 years of age for a man, and 55 years of age for a woman. The eligible age for retirement (or retirement age may increase or decrease in the following cases: - The retirement age may increase by not more than 5 years (not more than 65 years of age for a man, and 60 for a woman) in special cases in which the employer has the need to retain the service of the laborer (in the administrative sector, there must be the payroll quota), and the laborer is still physically fit and volunteers his/her service in writing. - The retirement age may decrease by not more than 5 years (not less than 55 years of age for a man, and 50 for a woman) if the laborer falls into one of the following categories: + Having 20 years of service in a profession or on a job which is heavy and noxious; in a place which has area subsidy indexes of 0.7 and 1 (discontinued periods shall be added up). The heavy and noxious jobs and works are those of category IV or higher, stipulated in the listed labor categories issued under Decision No.278-LD/QD on the 13th of November, 1976 of the Ministry of Labor, in the list of occupations to be paid with hazard allowances issued under Decree No.235-HDBT on the 18th of September, 1985 of the Council of Ministers (now the Government); in the list of heavy, noxious and dangerous jobs issued under Circular No.19-LDTBXH/TT on the 31st of December, 1990 of the Ministry of Labor, War Invalids and Social Affairs; and in the supplementary provisions of the Ministry of Labor, War Invalids and Social Affairs, or of other Ministries with the consent of the Ministry of Labor, War Invalids and Social Affairs; the areas which have area subsidy indexes of 0.7 and 1, are stipulated in Circular No.15-LDTBXH on the 2nd of June, 1993; + Having 10 years of service on battlefields in southern Vietnam and Laos before the 30th of April, 1975, and in Cambodia before the 31st of August, 1989. The time periods in different battlefields shall be added up. + Having served before the 20th of July, 1954; + Belonging to the contingent of State workers and employees taken out of the payroll under Decision No.176-HDBT of the 9th of October, 1989, or Decision No.111-HDBT on the 12th of April, 1991 of the Council of Ministers (now the Government). In case the retired has at least 20 years working heavy or noxious jobs, or in area which has area subsidy indexes of 0.7 and 1, or has spent at least 10 years on battlefields in southern Vietnam or in Laos or Cambodia, the retirement age may be advanced by not more than 5 years (no less than 50 years of age for a man, and 45 years of age for a woman). b) The pension: b.1) One-time allowance on retirement: - The laborer, who has purchased social insurance from 20 to 30 years, shall receive and allowance equal to one month of his/her salary. - The laborer, who has purchased social insurance for from over 30 years to 35 years, shall receive an allowance equal to 2 months of his/her salary. - The laborer, who has purchased social insurance for over 35 years, shall receive an allowance equal to 3 months of his/her salary. For the laborer who works in the State sector, the salary on which to calculate his/her one-time allowance is the salary he/she is paid immediately before retirement, which includes the salaries paid on rank, title, responsibility, the subsidies paid on title and on seniority in elected position and the index subsidy and area subsidy (if any). With regard to those working in the non-State sector, or working both in the State-owned sector and in the non-State sector, the lump sum paid to them upon retirement is based on the average wage for paying social insurance premiums (as stipulated at Point b.2 below). b.2) Monthly pension: The monthly pension is based on the number of years during which social insurance premiums have been paid (calculated by full years, if there are odd months, 6 full months or more shall be reckoned as a full year), and on the average level of wage for paying social insurance premiums. More concretely: - With regard to workers and employees in the State-owned sector: their pension shall be calculated on the basis of the average wage for paying social insurance premiums during the 10 years before retirement (hereunder referred to as the average salary for paying social insurance premiums). This average wage is the result of the division by 120 months of the total amount of wages for paying social insurance premiums during the 10 preceding years. In case workers and employees in the State-owned sector retire and their average wage for paying social insurance premiums during the last 10 years before retirement, including the time before application of the new wage regime (1st April 1993), then their pension shall be calculated on the basis of the wages paid to them from the 1st of September 1985, according to the scale of wages stipulated by Decree No. 235-HDBT on the 18 th of September 1985 of the Council of Ministers (now the Government, and Decision No. 58-QD/TW on the 18 th of September, 1985 of the Party Secretariat, which are converted to the wages of grades, professions and titles, including position allowance (if any) of the new wage regime. More concretely: + The universally elected officials and professional and administrative officials of the judicial and procuracy branches, the universally elected managers of the State apparatus from provincial to district levels, public employees of the administrative and professional sector, the elected officials, and officials and employees in Party and mass organizations shall have their old wages changed to the new system as stipulated by Decision No.35-NQ/UBTVQHK9 issued on the 17th of May, 1993 by the National Assembly Standing Committee, Decision No.69-QD/TW issued on the 17th of May, 1993 by the Secretariat of the Party Central Committee, Decree No.25-CP on the 23rd of May, 1993 by the Government, Decision No.574-TTg on the 25th of November 1993 of the Prime Minister, Decree No.5-CP on the 26th of January, 1994 of the Government, Circular No.10-LB/TT on the 2nd of June, 1993, Circular No.5-LB/TT on the 4th of February, 1994, and Circular No.25-LB/TT on the 13th of September, 1993 of the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Finance, and the Government Commission on Organization and Personnel (example given in the Appendix enclosed with this Circular). + The workers and employees in State-owned businesses shall have their old wages changed to new ones, as stipulated by Decree No. 26-CP on the 23rd of May, 1993, and Decree No. 5-CP on the 26th of January, 1994 of the Government, and Circular No. 12-LB/TT on the 2nd of June, 1993 of the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Finance, and the Government Commission on Organization and Personnel (examples given in the Appendix enclosed with this Circular). - With regard to those working both in the State-owned sector and the non-State sector, such as joint venture enterprises, foreign invested enterprises, private businesses, etc., their wage for paying social insurance premiums shall be calculated as follows: + Their average wage for paying social insurance premiums of the period during which they work in the State-owned sector as is applied to State employees. Then, to multiply the average wage for paying social insurance premiums by the total number of months during which they work in the State-owned sector, to have the total value of wages for payment of social insurance premiums in the State-owned sector. + The average wage for payment of social insurance premiums of the period during which they work in the non-State sector, multiplied by the total number of months during which they work in the non-State sector to have the total value of wages for payment of social insurance premiums in the period of their work in the non-State sector. Then to add the total value of wages for payment of social insurance premiums of both sectors and divide it by the total number of months for payment of social insurance premiums of both State-owned and non-State sectors to have the common average wage for payment of social insurance premiums as the basis for calculating the pension (examples given in the Appendix enclosed with this Circular). - With regard to those working in the non-State sector, their average wage for payment of social insurance premiums shall be calculated as follows: + If they choose to pay social insurance premiums according to one scale of wages, their average wage for payment of social insurance premiums shall be calculated in the same way as those working in the State-owned sector. + If during their working period, they have paid social insurance premiums according to several scales of wages, their average wage for payment of social insurance premiums shall be calculated by determining the average wage of each period, and then the common average wage of all periods, in the same way as for those who have working periods in both the State-owned sector and the non-State sector. b.3) The monthly pension: Those, who have paid social insurance premiums for 20 years, shall enjoy a pension equal to 55% of the average wage for payment of social insurance premiums, each additional year of social insurance premiums shall be given another 2%, but the maximum pension shall not exceed 75% of the average wage for payment of social insurance premiums. The lowest pension must not be lower than the minimum wage. (The method of calculating pensions is given practical demonstration in the Appendix enclosed with this Circular). 2. The regime of paying pension in a lump sum. a/ Eligible for the pension are: - Those persons who have reached retirement age as stipulated, but who have paid social insurance premiums for less than 20 years; - Those persons who have not yet reached the retirement age as stipulated (regardless of how many years they have paid social insurance premiums), but who for health reason (not due to a labor accident or an occupational disease) have been certified by the medical examination council that they have lost 61% or more of their working capacity. b/ The payment of pension in a lump sum is based on the number of years in which the persons concerned have paid social insurance premiums: The payment of pension in a lump sum shall be based on the number of years in which the persons concerned have paid social insurance premiums: one year of paying social insurance premiums entitles the person concerned to one month of the average wage for payment of social insurance premiums before retirement. The average wage shall be calculated as stipulated in the regime of monthly pension (Section IV, Point b.2). 3. With regard to those working people who have not yet reached retirement age, but who have paid social insurance premiums for 20 years or more, if for one reason or another they cannot continue to work and to pay social insurance premiums, then when they reach retirement age as stipulated, they shall be granted a monthly pension, but the managing agency must compile a dossier and send it to the Labor, War Invalids and Social Affairs Office or to the Social Insurance Management Office to consider and settle. V. THE REGIME OF DEATH ALLOWANCE 1. Funeral allowance. a/ Eligible are: - Those persons in active service who have paid social insurance premiums according to regimes stipulated at Section B of this Circular, including those who have retired or are waiting for pension. - The pensioners and recipients of monthly allowance for labor accident or occupational disease. b/ The funeral allowance is equal to 7 months of the minimum wage. The person in charge of organizing the funeral shall receive this funeral allowance. 2. The monthly death allowance. a/ Eligible are: Those persons who have paid social insurance premiums for 15 years or more; the recipients of monthly pension; the recipients of monthly allowance for labor accident or occupational disease as stipulated at Section III of this Circular who die, and those who die of a labor accident or occupational disease, In this case, their next of kin as mentioned below who directly supported them while they were alive, shall be granted a monthly death allowance. The next of kin are: - Their own parents, their spouse’s parents, their lawful fosters, their spouse who are past working age (60 full years for men, and 55 full years for women) or who is still in working age, but has lost 81% or more of his/her working capacity. But among these persons, they who are receiving a wage, or a pension, or a monthly allowance for loss of working capacity, for labor accident, or for occupational disease, shall not receive the monthly death allowance. - Their children under 16 years of age (including their own children, legally adopted children, illegitimate children recognized by law, and the child which is conceived before the husband dies), or children older than 16 who have lost 81% or more of their working capacity. b/ Monthly death allowance: The monthly death allowance for one next of kin shall be equal to 25% of the minimum wage, and the number of next of kin entitled to this monthly death allowance shall not exceed 4. The monthly death allowance shall be granted from the day the laborer dies. In case one person has many next of kin who pay social insurance premiums and who die, he/she shall be granted a number of monthly death allowances equal to the number of his/her next of kin who pay social insurance premiums and who die. With regard to the next of kin stipulated at Point a, if he/she has no other source of income and has no other close relative to rely on, he/she shall receive a support death allowance representing 70% of the minimum wage. 3. One-time death allowance a/ Recipients: When a laborer, who has paid his social insurance premiums or who is receiving monthly pension or labor accident or occupational disease allowances as stipulated at Part B, Section III of this Circular, dies but his/her next of kin does not fall under the category of recipients of monthly death allowance, his/her family shall receive a one-time death allowance. b/ Level of one-time death allowance: - When a laborer in active service who is covered by the social insurance scheme dies, his/her family shall receive a one-time death allowance proportional to the number of years for which he/she has paid his/her insurance premiums, and representing half of the monthly wage on which he/she has paid his/her insurance premiums, for every year of active service, but not exceeding the total sum of 12 months of wage. The level of death allowance to the families of the persons working in the State sector, shall be based on the monthly wage on which he/she has paid his/her insurance premium in the month before his/her death. For the persons working outside the State sector, or partly in the State sector and partly outside the State sector, the level to determine the death allowance shall be based on the average monthly wage on which he/she has paid the insurance premiums (see Point b.2, Item b, Part IV). - When a person who is receiving a monthly pension, labor accident or occupational disease allowance dies, his/her family shall receive a one-time death allowance, based on the pension or allowance he/she is receiving, and the time he/she has received this pension or allowance. If he/she dies in the first year after retirement, the one-time allowance is 12 months of pension or allowance; if he/she dies in the second and a later year, one month of pension or allowance shall be substrated from every year he/she has received the pension or allowance, but the one-time allowance shall not fall below three months of pension and allowance. For example: 1. Mr. A dies after receiving 14 months of pension. The allowance shall represent 11 months of pension (12 months minus one month of allowance). 2. Mr. B 10 years after retirement. His monthly pension in the 10th year is 303,678 VND, his death occurs in the last month of the 10th year. The death allowance shall be 303,678 VND x (12 months - 10 months) = 607,356 VND. However, according to the stipulation mentioned above, the one-time allowance should represent at least three months of pension or allowance, the death allowance shall be 303,678 VND x 3 = 911,034 VND. VI. ALLOWANCES TO THE PERSONS COVERED BY SOCIAL INSURANCE BEFORE THE APPLICATION OF DECREE No.43-VCP 1. The persons receiving monthly pensions, incapacity or labor accident or occupational disease allowances, the workers at rubber plantations receiving monthly allowances, and the persons receiving monthly death allowances prior to the application of Decree No.43-CP, shall continue to receive the allowances as prescribed earlier by the Council of Ministers (now the Government), and shall enjoy the readjustments at the level defined by the Government. 2. When a person, who is receiving pension and incapacity allowance, labor accident Degree 1 and 2 and occupational diseases Category 1 and 2 allowances, dies, the death allowance described at this Circular shall apply. 3. When a rubber plantation worker who is receiving monthly allowance dies, only burial expenditures shall be granted as provided for in this Circular. C. IMPLEMENTATION PROVISIONS I. REGIME OF ALLOWANCES AND MEDICAL INSURANCE The following persons shall receive area allowance, dearness allowance in his/her place of residence (if any), and shall have their medical insurance covered by the State: - Recipients of monthly pensions; - Those who are receiving monthly labor incapacity allowances; - Those who are receiving monthly labor accident allowance or occupational disease allowance; - Workers at rubber plantations who are receiving monthly allowances. II. TIME FOR THE CALCULATION OF SOCIAL INSURANCE BENEFIT The time for the calculation of social insurance benefit is the total number of years in which the laborer has paid his/her social insurance premiums. - For the workers and employees in the State sector, or those who were workers and employees in the State sector assigned to other units outside the State sector but who have not received severance allowances, the time of actual work is the time during which the State worker or employee (excluding the conversion into conventional work time) has paid his/her social insurance premiums at the rates defined for each period. - For the laborers in the non-State sector who come under the obligatory social insurance system, who have paid their social insurance premiums prior to the promulgation of this Circular, and who remain under the obligatory insurance system, they shall enjoy social insurance for the years they have paid their social insurance premiums. III. HANDLING OF VIOLATIONS 1. Temporary suspension of the right to social insurance: - During the laborer's temporary detention or imprisonment. On the expiry of his/her temporary detention or imprisonment, the laborer shall be considered for eligibility or non-eligibility for social insurance. On a return of non-guilty, he/she shall receive retroactive payment of pension or allowance for the time of suspension. - When a case of fraud aimed at receiving social insurance is detected, the offender shall, depending on the extent of the violation, have his/her social insurance benefit reduced, or have his/her right to social insurance annulled. 2. Annulment of the right to social insurance: - The persons sentenced to prison terms on account of betrayal to the Fatherland; - The persons who leave for abroad or stay overseas illegally; - The persons who receive social insurance benefits due to faked dossiers. 3. The employers, the laborers, the State officials or personnel of the social insurance organizations, who violate the provisions of the system of social insurance, shall be subject to administrative fines or investigated for penal liability according to the law in force. IV. IMPLEMENTATION EFFECT Pending a social insurance scheme as stipulated in Decree No.43-CP, the Vietnam Confederation of Labor shall manage and carry out the regimes concerning sickness, maternity, labor accident or occupational disease. The Ministry of Labor, War Invalids and Social Affairs shall manage and carry out the regimes concerning pension, death allowance (including the earlier regime concerning labor incapacity). This Circular takes effect as from the 1st of January, 1994. With regard to the regimes of allowances concerning sickness, maternity, labor accidents or occupational diseases, they shall take affect as from the 1st of July, 1994. All earlier regulations on social insurance contrary to this Circular are now annulled. In the process of implementation, if some problems arise, they should be reported to the Ministry of Labor, War Invalids and Social Affairs, and the Ministry of Finance for consideration and settlement. For the Minister of Finance Vice Minister TAO HUU PHUNG For the Minister of Labor, War Invalids and Social Affairs, Vice Minister LE HUY DONG APPENDIX (published together with the Joint Ministerial Circular No. 21-LB/TT on the 18th of June, 1994 of the Ministry of Labor, War Invalids and Social Affairs, and the Ministry of Finance) CALCULATION OF THE AVERAGE WAGE FOR THE PAYMENT OF SOCIAL INSURANCE PREMIUMS AND CALUCLATION OF PENSION. Example 1: A State employee who has paid his social insurance for 35 years and who retires on the 1st of January, 1994. His wages in the ten years preceding retirement are as follows. - From the 1st of September, 1985 to the 31st of December, 1985, his monthly wage was 390 VND. - From the 1st of January 1986 to the 31st of December, 1986, his monthly wage was 425 VND. - From the 1st of January, 1990 to the 31st of March, 1993, his monthly wage was 463 VND. - From the 1st of April, 1994 in the new wage system, he is classed on the wage scale with a coefficient of 3.91. His monthly pension will be as follows: 1. Average monthly wage for the payment of social insurance premiums: a/ Conversion of the wage in September 1985 to the new wage: - 390 VND is converted into 3.06 x 120,000 VND = 367,200 VND. - 425 VND is converted into 3.35 x 120,000 VND = 402,000 VND - 463 VND is converted into 3.91 x 120,000 VND = 469,200 VND b/ Total wages for the payment of social insurance premiums from September 1985 to December 1993: - From September 1985 to December 1985: 4 months x 367,000 VND = 1,468,800 VND - From January 1986 to December 1989: 48 months x 402,000 VND = 19,296,00 VND - From January 1990 to December 1993: 48 months x 469,200 VND = 22,521, 600 VND Total: 100 months = 43,286,400 VND c/ Average wage for payment of social insurance premiums: 43,286,400 VND: 100 months = 432,864 VND 2. Monthly pension represents 75% of the average monthly wage for payment of social insurance premiums: 432,864,000 VND x 75% = 324,648 VND Example 2: An army officer who had changed from army service to a civil work and has paid his social insurance premiums for 32 years and who retired on the 1st of April, 1994. His army rank when detailed to a civil work was first lieutenant with 24 years of service in the army. His wages in the ten years before retirement were as follows: - From the 1st of September 1985 to the 31st of March 1986, his first lieutenant wage was 350 VND, plus 24% of army seniority allowance. - From the 1st of April 1986 to the 31st of March 1990, he received a monthly wage of 390 VND. - From the 1st of April 1990 to the 31st of March 1993, his wage was 425 VND. - From the 1st of April 1993 in the new wage scale, his wage coefficient is 3.35. His monthly pension is as follows: 1. Calculation of average wage for payment of social insurance premiums: a/ Conversion of the wages from September 1985 to the new wage system: - First lieutenant wage of 350 VND is converted into 3.8 x 120,000 VND = 456,000 VND. - His wage of 390 VND is converted into 3.06 x 120,000 VND = 367,200 VND - His wage of 425 VND is converted into 3.35 x 120,000 VND = 402,000 VND b/ Total of wages for the payment of social insurance premiums from September 1985 to March 1994: - From September 1985 to March 1986: Army rank wage: 456,000 VND Seniority allowance (24%) : 109,440 VND Total: 565,440 VND 7 months x 565,440 VND = 3,958,080 VND - From April 1986 to March 1990: 48 months x 367,200 VND = 17,625,600 VND - From April 1990 to March 1993: 36 months x 402,000 VND = 14,472,000 VND - From April 1993 to March 1994: 12 months x 402,000 VND = 4,824,000 VND Total 103 months = 40,879,680 VND c/ Average wage for payment of social insurance premiums: 40,879,680 VND: 103 months = 369,890 VND 2. Monthly pension represents 75% of the wage for payment of average social insurance premiums: 369,890 VND x 75% = 297,668 VND Example 3: A Vice President of the provincial People's Committee who has paid his social insurance premiums for 40 years, retiring on the 1st September, 1995. His wages in the ten years preceding retirement are: - From September 1985 to October 1986: he was Director of the provincial Educational Service, his wage was 513 VND. - From November 1986 to November 1989 he was Director of the provincial Educational Service, his wage was 555 VND. - From December 1989 to March 1993, he was Vice President of the People's Committee of the province, his wage was 599 VND. - From April 1993 to August 1995, his new wage was converted by the coefficient 6.2. His monthly pension is as follows: 1. Average wage for payment of social insurance premiums: a/ Conversion of wage levels effective from September 1985 into new wage levels: - Wage 513 VND (Director of Service) converted by coefficient 4.19 - Position allowance (Director of Service): 0.7 Total: 4.89 x 120,000 VND = 586,800 VND - Wage 555 VND converted by coefficient 4.75 - Position allowance: 0.7 Total 5.45 x 120,000 VND = 654,000 VND - Wage 599 VND (Vice President of provincial People's Committee) converted into: 6.2 x 120,000 VND = 744,000 VND b/ Total wage on which he paid his social insurance premiums from September 1985 to August 1995: - From September 1985 to October 1986: 14 months x 586,800 VND = 8,215,200 VND - From November 1986 to November 1989: 37 months x 654,000 VND = 24,198,000 VND - From December 1989 to August 1995: 69 months x 744,000 VND = 51,336,000 VND Total: 120 months = 83,749,200 VND c/ His average wage for payment of social insurance premiums is: 83,749,200 VND : 120 months = 697,910 VND 2. His monthly wage represents 75% of the wage for payment of insurance premiums: 697,910 x 75% = 523,433 VND Example 4: An engineering worker having paid social insurance premiums for 25 years and retiring on the 1st of September, 1998. His wages in the ten years preceding retirement were: - From September 1988 to October 1992, he received Grade 5 wage of 315.50 VND - From November 1992 to March 1993, he received Grade 6 wage of 336 VND - From April 1993, his Grade 6 wage changed to new wage by coefficient 2.67. His monthly pension shall be as follows: 1. Average monthly wage for payment of social insurance premiums: a/ Change of the wages from September 1988 to new wage scale: - 315.50 VND changed to 2.18 x 120,000 VND = 261,600 VND - 336 VND changed to 2.67 x 120,000 VND = 320,400 VND b/ Total wages for payment of social insurance premiums from September 1988 to August 1998: - From September 1988 to October 1992: 50 months x 216,600 VND = 13,080,000 VND - From November 1992 to August 1998: 70 months x 320,400 VND = 22,428,000 VND Total: 120 months = 35,508,000 VND c/ Average wage for payment of social insurance premiums: 35,508,000 VND : 12 months = 295,900 VND 2. Monthly pension represents 65% of the wage for payment of social insurance premiums: 295,900 VND x 65% = 192,335 VND Example 5: A worker affected to the State payroll from January 1962 to February 1989. From March 1989 to May 1994, he was assigned to an enterprise having foreign investment. 1. His average wage for payment of social insurance premiums in the State sector: - From September 1985 to February 1989, his wage was Grade 5 or 315,50 VND. This changed to the new wage scale under Decree No.26-CP into: 2.18 x 120,000 VND = 216,600 VND - Total value of wages for his payment of social insurance premiums during his service in the State sector: 216,600 VND x 326 months = 85,281,600 VND 2. Average wage for payment of social insurance premiums when he worked at the foreign-invested enterprise: - From March 1989 to June 1991, he received 50 USD per month, which is equal to 540,000 VND at the time of his retirement (one USD = 10,800 VND): 540,000 VND x 28 months = 15,120,000 VND. - From July 1991 to May 1994 he received 65 USD per month which is equal to 702,000 VND at the time of his retirement (one USD = 10,800 VND): 702,000 VND x 34 months = 23,868,000 VND. Total: 62 months = 38,988,000 VND. - Average monthly wage for payment of social insurance premiums: 38,988,000 VND : 62 months = 628,838,71 VND. - Total value of wages for payment of social insurance premiums for both periods inside and outside the State sector: 628,838.71 VND x 62 months = 38,988,000 USD 3. Calculation of average wage for payment of social insurance premiums for both periods inside and outside the State sector: - Total value of wages for payment of social insurances premiums: 85,281,600 VND + 38,988,000 VND = 124,269,600 VND. - Total time for payment of social insurance premiums: 326 months + 62 months = 388 months. - Average wage for social payment of social insurance premiums is: 124,269,600 VND : 388 months = 320,282.47 VND. 4. Monthly pension represents 75% of the wage for payment of social insurance premiums: 320,282.47 VND x 75% = 240,211.85 VND.-