MINISTRY Of fiNANCE AND SOCIALIST REPUBLIC Of VIETNAM MINISTRY Of LABOUR, Independence-freedom-Happiness INVALIDS AND SOCIAL AfFAIRS htmlhtml---- No.21/LB-TT htmlhtml--- Hanoi 18 June 1994.

CIRCULAR PROVIDING A GUIDANCE fOR THE REALIZATION Of SYSTEMS Of SOCIAL SECURITY IN COMPULSORY fORM

Executing the Decree no 43/CP dated June 22 1993 of the Government, provisionally stipulating the systems of social security; after consulting Vietnam trade Union and state bodies concerned, the Ministries of finance, Labour - Invalid and social Affairs a re providing hereby a guidance for the realization of system of social security in compulsory form.

A. Objects for Application
The compelled objects for application of 5 systems of social security stipulated in article 1, clause 2 of the Decree No. 43/CP dated 22 June 1993 of the Government include ;
- I. officials, government employees of administration and non-productive sector
  - 1. Those who are holding nominated or elected by voting posts in the state management bodies party and mass organizations from the central down to the district levels.
  - 2. Officials and government employees, working in the state management, the state non-productive organs from the central down to the district level.
  - 3. The staff members of party mass organization and association offices from the central down to the district levels.
  - 4. Officials and government employees seconded to the communes, quarters, Associations, Projects and Vietnam - based international organizations.
- II. Officials, workers of business enterprises and laborers in other organizations.
  - 1. Officials, workers of the state - owned enterprises, including business or service establishments that belong to administrative and non-productive state bodies, armed forces, party and mass organization and Associations.
  - 2. Workers and officials working for economic non - productive units.
  - 3. Laborers receiving wage or payment from production, business and service units in non-state sector of economy, employing more than 10 persons.
  - 4. Vietnamese laborers working in EPZs, special economic zones, joint ventures and enterprises with foreign invested capital, Vietnam based foreign diplomatic bodies, representative offices of international and other foreign organizations.
    The objects noted in this past A shall include those who are participate in educational or training courses, to go for a mission or who are under medicine treatment and in convalescence in Vietnam or abroad.
B. Systems of social security
- I. Sickness allowance system
  - 1. Conditions for receiving sickness allowance :
    Laborers having sick leaves or suffering from accident, women having the first or the second child (including legal adopted children) or the third child (for special cases in compliance with the Decision No 162/HDBT dated 18 October 1988 of the council of Ministers -now he Government) which is younger than 72 months and getting sick, having written endorsement of Hospital, infirmary or any official medical services under the management of Health care branch.
    In case the mother war dead or being a serious cripple, suffered from mental diseases or a long standing illness, or being in a mission; As well as in case of divorced parents and the child is living with the father. Then the father is entitled to be on l eave and receive social security allowance for taking care of the ill child.
    In case of being on leave because of self - damaging one's health free fighting, being drunk with alcohol or spending drug, one shall not receive sickness allowance.
  - 2. Duration of time spent away from work with sickness allowance instead of salary :
  - a. for those who works in normal conditions :
  - - 30 days per year for those who have paid social security fee for less than 15 years.
  - - 45 days per year for those who have paid social security fee for over 15 years.
  - b. for those who have a heavy or Harmful profession and job (in compliance with the list of heavy or harmful professions and jobs stipulated by the state) :
  - - 40 days per year for who have paid social security fee for less than 15 years
  - - 60 days per year for who have paid social security fee for less than 15 years
  - c. In case of getting diseases that require long time of hospital treatment, the maximum time of receiving sickness allowance is 180 days (independent of time of paying social security fee). If the treatment is still required after the above mentioned dur ation of time, the allowance for the extended treatment will be 70% the minimum wage in the state pay - sheet (hereafter referred to as minimum wage). List of long time cured diseases is stipulated in the Circular No. 33/TT-LB dated 25 June 1987 of the Mi nistry of Health care and Vietnam trade Union.
  - d. Leave for sick child patronage :
  - 15 days per year, for less than 36 month child
  - 12 days per year, for 36 - 72 month child;
  - 3. Allowance norm :
    Sickness allowance instead of wage equals 70% the monthly salary with some rate to be deducted for paying social security fee (hereafter to as SSf salary) before the sickness leave.
- II. Maternity allowance system
  - 1. Conditions for receiving allowance
    female laborers being pregnant or in childbirth for the 1st or the 2nd time, and in special cases - the 3 rd time as stipulated in the decision No 162/HDBT
  - 2. The allowed time spent away from work :
  - a. In the pregnancy period
  - - 3 times of one day leave are allowable for pregnancy examination
    for those who are working in the mountainous areas or sea islands far from health care service, or having pathological signs or unusual fetus, a 2 day leave for each examination is allowable.
  - - 20 days or 30 days leave in case of abortion, depending on the abortive is less or more than 3 months.
  - b. In the childbirth period :
  - - If is allowed to have 120 day leave around the childbirth for women working in normal conditions, 150 day leave for women having a heavy or harmful profession and job as well as working in the places with regional allowance coefficient 0.7 or 1.0. The p re-childbirth leave should be 30 days, in case of necessity the pre-childbirth leave may be long lasting but the total time of leave must not exceed the stipulated limit.
  - - If several children were born at the same time, the mother would be entitled to a 30 day leave for each additional baby.
  - - If a child is dead : within 60 days after being born (including missed abortion), the mother shall have a 75 day leave, counted since bearing day, after 60 days - a 15 day leave counted since the child's death. In both cases, the total time of leave mus t not exceed the stipulated limit.
    After ending the childbirth leave, as stipulated above, at the request of the mother and with the agreement of the employer, the childbirth leave may be extended but this extension is out of social security and must not exceed 180 days.
  - c. Keeping newly born adopted baby :
    Any laborer (whether male of female) legally keeping newly born adopted baby in compliance with respective provisions of the law on Marriage and family shall be entitled to an allowed leave of 120 days, counted since the baby was born.
  - 3. Allowance norm :
    During the pregnant and childbirth leave as stipulated in the above heaving 2 - the laborer will receive an a allowance equal to 100% of his or her SSf salary before the leave.
    Besides that, having a delivery, the mother will receive one time allowance equal to 2 month minimum wages.
    In case of bearing 2 or more children at the same time, or the mother is dead after delivery, or the breast - feeding is unallowed by health care service due to the mother's illness, or Keeping newly born adopted baby, There will be and allowance equal to 2 month minimum wages given for milk.
- III. Working accident and occupational Disease allowance systems.
  - 1. Working accident allowance system
  - a. Conditions for receiving allowance
  - - Being victim of a working accident occurred in working time, at working place including the overtime working at the request of the employer.
  - - Being subjected to an accident when going on an assigned official mission
  - - falling into an accident on the way going to or coming from work.
  - - falling into an accident when saving human - life or salvaging social and people's properties.
    Procedures for approving the working accident allowance should be done in compliance with the valid at present provisions.
  - b. Allowance system
  - - In the time spent away from work for being under treatment until the invalidity is stable, the invalid shall receive 100% the monthly salary and all treatment expenses (as stipulated by the Ministry of Health care) paid by the employer.
  - - After the invalidity is state, being introduced by a social security organization, the invalid shall be referred to a medicine expertising committee of the provinces or cities under central authority or of the branch (as stipulated by the Ministry of he alth care) to have his or her working capacity evaluated. Subject to the declining rate of declining rate of working capacity, the invalid shall receive allowance calculated in accordance with an average monthly salary in the state pay - sheet which is e qual to the doubled minimum wage, stipulated as the followings :
    If the working capacity is declined by from 5% to 60% one time allowance will provided as described in the table bellows :
  - "declining rate (%) of working capacity " one time granted allowance norm"
  - "5-20" 4 month minimum wage"
  - "21 - 30" 8 month minimum wage"
  - "31 - 40" 12 month minimum wage"
  - "41 - 50" 16 month minimum wage"
  - "51 - 60" 24 month minimum wage"
    - * The employer shall be obliged to ensure a suitable and permanent job for those who have been suffered from working accident or occupational disease and have received one time granted allowance to settle down their life.
    - * If the working capacity is declined by from 61% to 10%, a monthly allowance will be provided subject to the invalidity classification (after checking - out from hospital) as stipulated in the bellows :
  - "declining rate (%) of working capacity " invalidity class" monthly allowance norm"
  - "61 - 70" 4" 1 month minimum wage"
  - "71 - 80" 3" 1.2 month minimum wage"
  - "81-90"2" 1.4 month minimum wage"
  - "91 - 100"1" 1.6 month minimum wage"
  - - for the victims of working accident who loss over 81% working capacity and are unable for self - service in their daily routine because of being spine paralyzed, blind of both eyes, disabled in two arms or legs, suffered from heavy metal disease ect. a monthly allowance of 80% minimum wage will be provided for service.
  - - The victims of working accident having injured function of arms, legs, ears, eyes, teeth, spine etc. Shall have respective function - aiding facilities granted one time.
  - - When the injury is recurred, it shall be cured and re-evaluated.
  - - If laborer is dead in a working accident (or during the 1st treatment), his/her family shall receive a one time granted allowance, equal to 24 minimum wage, and other widow hood's allowance as stipulated in the heaving v of this circular.
  - 2. Occupational disease allowance system :
  - a. Conditions for receiving allowance
  - - Laborers catching one of occupational diseases of the professions listed in circulars No 08/LB-TT dated 19 May 1976 and N0 29/LB-TT dated 25 December 1991 of the Ministries of Health care, Labour - Invalid and social Affairs and the Vietnam trade Union.
  - b. Allowance system
    Salary and all expenses required for curing occupational disease, health evaluation and the provisions concerning one time granted and month allowances, service allowance and others stimulated in the heading III, clause 1, point b) of this circular shall be applied to the laborers catching occupational disease (The same as the victims of a working accident).
- IV. Retirement allowance system
  - 1. Monthly retirement pension
  - a, Conditions for receiving monthly retirement pension
  - a.1. Having paid social security fee for 20 year (24 months) or over.
  - a.2. Age : 60 for male, 55 for female
    The normal retirement age (or pensionable age) may be higher or lower in the following cases :
  - - Pensionable age may increase by less than 5 years (not exceed 65 for male, 60 for female) at the request of the employer (for the administration and non-productive sector, this also depends on the targeted staff of the state pay - roll) and will the fit ness and willingness of the laborers (having application for staying at work)
  - - Pensionable age may reduce by less than 5 years (not lower 55 for made, 50 for female) for those who belong to one of the following objects :
    - + having 20 years at work with heavy or harmful profession and job working in the places with regional allowance coefficient 0.7 or 1.0 (in case of intermittence, the time is added up).
      Heavy or harmful professions and jobs are that of the IV and higher ranges, stipulated in the classification list of labour issued in conjunction with the Decision No. 278/LD-QD dated 13 November 1976 of the Ministry of Labour ; the professions listed in the pay-sheet of harmful jobs promulgated by the Decree N0.235/HDBT dated 18 September 1985 of the council of Ministers (now the government) and the list of heavy, harmful, dangerous professions and Jobs issued in conjunction with the Circular N0. 19/LDT BXH - TT dated 31 December 1990 of the Ministry of labour, Invalid and social Affairs, other adding regulation regulations of this Ministry as well as the regulations issued by other Ministries with Its agreement;
      Places with regional allowance coefficient equal to 0.7 and 1.0 are stipulated in the Circular No.15/LDTBXH dated 2 June 1993 of the Ministry of Labour - Invalid and social Affairs.
    - + Having 10 years of working in the south and c battlefield before 30 April 1975 or the K battlefield before 31 August 1989 (The time also added up).
    - + Having time at work before 20 July 1954
    - + Workers and official on the state pay - roll, being out down from the staff or reorganized in compliance with the provisions of or recognized in compliance with the provisions of the Decisions N0 176/HDBT dated 9 October 1989 or No. 111/HDBT dated 12 Ap ril 1991 of the council of Ministers (Now the Government)
    In case of having at least 20 years at work with heavy or harmful profession and job or in the places with regional allowance coefficient 0.7 and 1.0, or at least 10 years of working in the south, C and K battlefields the above mentioned objects may have pensionable age reduced by not more than 5 years (not lower 50 for male, 45 for female).
  - b. Allowance system ;
  - b.1. One time granted retirement allowance :
  - - One month salary shall be granted to those who have paid social security fee for 20 - 30 years as retirement allowance.
  - - Two month salary - for those who have paid social security fee for over 35 years
    for persons working in the State run sector (civil servants), the basic for calculating one time granted retirement allowance is the salary of the last working month before retirement which includes : monthly salary of rank and grade or post, function al lowance seniority , allowance for elected post, salary keeping coefficient, regional allowance, high cost of living allowance (of any).
    for persons working in non-state sector or having worked in both sectors at different time, the basic for calculating one time granted retirement allowance will be the average SSf salary (as guided in point b.2 bellows).
  - b.2. Monthly retirement pension
    Monthly retirement pension is calculated on the basic of time of paying social fee (in round years, 6 old months will be considered a year) and the average SSf salary as follows
  - - for civil servants : Monthly retirement pension is calculated over the average SSf salary of the last 10 working year before retirement (hereafter referred to as the average SSf salary), this average SSf salary is equal to the sum of various SSf salarie s in 10 years divided by 120 (months).
    In case the last 10 years include the time before the implementation of new system (1 April 1993). It's allowed to have the salaries received after 1. September 1985 (in accordance with the scale of the pay - sheet, stipulated in the Decree No. 235/HDBT dated 18 September 1985 of the Council of Ministers No 58/QD-TW dated 18 September 1985 Secretariat Committee) translated in to the new salaries of respective rank, grade or post of the new system, including function allowance (if any) as follows :
    - + Nominated post holders, specialists and professional cadres of juridical branch, Nominated post holders of the state management from the city to the district levels, officials, government employees of administration and non-productive sector, elected by voting post holders and the staff members of partial offices, mass organization and Association offices shall have their old salaries translated into new ones in compliance with the provisions of the following legal documents : Resolution N0 35/NQ-UBTVQK H9 dated 17 May 1993 of the standing committee of the National Assembly Decision No 69/QD-TW dated 17 May 1993 of the secretariat of the Party central committee, Decree No 25/ CP dated 23 May 1993 of the government, Decision N0 574/TTg dated 25 November 1993 of the Prime Minister, Decree No 05/CP dated 26 January 1994 of the Government, Interministerial Circulars No 10/LB-TT dated 2 June 1993, No 05/LB-TT dated 4 february 1994 and No 25/LB-TT dated 13 September 1993 of the Ministries of finance, Labour - Invalid and Social Affairs, the Organization and personnel Department of the Government (please see examples in the attached herewith annex).
    - + Workers and officials working in the state-owned business enterprises shall have their old salaries translated in to new ones in compliance with the provisions of the Decrees No 26/CP dated 26 May 1993 and 05/CP dated 26 January 1994 of the Government. and interministerial Circular No 12/LB-TT dated 2 June 1993 of the Ministries of finance, Labour - Invalid and Social Affair and the organization and Personnel Department of the Government (please see examples in the attached herewith annex).
  - - for those who have worked in both state - run and non - state sector at different time such as in Joint venture enterprises, business establishment with foreign investment capital, private - run business enterprises ect. The average SSf salary shall be calculated as follows :
    - + To calculate the average SSf salary for the time of working in the state - run sector in the same way as for civil servants. Then multiply this SSf salary by the sum total of working months, that makes the total value of SSf salary for the state - run s ector.
    - + To calculate the average SSf salary for the time of working in the state - run sector, then multiply this SSf salary by the sum total of social security fee paying months (in non - state sector), that makes the total value of SSf salary for the non - s tate sector.
    At last, to add up the total value of SSf salaries for both sectors, then divide this sum by total months of paying social security fee in both sector - the result will be the average SSf salary to be used for the calculation of monthly retirement pensio n. (Please see examples in the attached herewith annex).
  - - for those who have worked in non-state sector only, the average SSf salary shall be calculated as follows :
    - + If the social security fee is paid in accordance with a system of salary scale and pay - sheet, the average SSf salary shall be calculated in the same way as for the workers of the state - run sector.
    - + If the social security fee is paid in accordance with various systems of salary scale and pay-sheets. The calculation of the average SSf salary should be done separately for each respective period, then to work out the common average, like the calculat ion applied to a person working in both sectors at different time.
  - b.3. Norm of monthly retirement pension those who have enough 20 years of paying social security fee shall receive a monthly retirement pension equal to 50% the average SSf salary, this pension is added by 2% for each extra year but must not exceed 75% th e average SSf salary. The minimum monthly retirement pension must not be lower than the minimum wage.
    (Detailed calculation of monthly retirement pension is provided in the attached in the herewith annex).
  - 2. One time granted retirement allowing system
    - a. Conditions for receiving allowance :
    - - Those who are at pensionable age but lacking 20 years of paying social security fee.
    - - Those who are younger in age stipulated for retirement (Independent of the time of paying social security fee) but have working capacity declined by over 61%, endorsed by a medicine expertising committee, for some reasons of health neither caused by a working accident nor any occupational disease.
    - b. Basic for the calculation of one time granted retirement allowance is the time of paying social security fee :
      The norm of one time granted retirement allowance is calculation on the basic of the time of paying social security fee : each year of paying social security fee shall be allowance with an amount equal to one month average SSf salary right before retire ment. The calculation of the average SSf salary is the same as stipulated in the system of monthly retirement pension (Heading IV, point b.2)
  - 3. Laborers, who are younger in age that needed for retirement but have paid social security fee for round and over 20 years, if for some reasons they are not able to keep working and paying social security fee, then when reaching the pensionable age, the y shall to receive monthly retirement pension. In this case, the body in charge must draw up a file to be submitted to the relevant Labour - Invalid and social Affair service or social security management body for consideration and settlement.
- V. funeral and widowhood allowance system
  - 1. funeral expenditure
    - a. Objects for application :
    - - Persons who are still at work, paying social security fee in compliance with regulations of heading B of this circular, including those who are stopped working in waiting for retirement procedures.
    - - Pensioners and those who receive monthly allowances for working accident or occupational disease.
    - b. The granted funeral expenditure is equal to 7 month minimum wage. The funeral organization will receive this allowance.
  - 2. Monthly widowhood's allowance
    In Case of the death of : laborers having paid social security fee for 15 year or more : pensioners and those who receive monthly allowances for working accident or occupational disease as stipulated in the heading III of this circular. And in case the de ath is caused by working accident or occupational disease, the following dependents of the dead person which have been fostered directly by the dead when alive shall receive a monthly widowhood's allowance :
    - a.
    - - father, mother, father and mother in law, legal foster - man, wife (or husband) who are over the working age (60 for male, 55 for female) or at the working age but having capacity declined by 81% and over. If the above mentioned are on the pay - roll o r receiving monthly pension, monthly disability allowance, working accident allowance, working accident or occupational disease allowances shall not be entitled to widowhood's allowance.
    - - Children up to 16 years old ( including adopted or born out of wedlock but lawful children, and a child born after the death of father) or children over 16 years old, having capacity declined by 81% or over.
    - b. Norm of monthly widowhood's allowance :
      One dependent will receive a monthly allowance equal to 25% the minimum wage, the total number of dependents entitled to this allowance must not exceed 4. The monthly allowance is granted since the day of the death.
      If one is a dependent of some dead laborers who have contributor to social security, one will receive the respective portions of monthly widowhood's allowance.
      The dependents mentioned in the point a not having other income source and other foster - man shall receive a monthly fostering widowhood's allowance equal to 70% the minimum wage.
  - 3. One time granted widowhood's allowance
    - a. Objects for application :
      If laborers having contribution to social security fund, pensioners and those who are receiving monthly allowance for working accident or occupation disease in compliance with the provisions noted in the heading III, part B of this circular are dead, but their relatives do not belong to the category of people to be allowance monthly, then the family shall be entitled to a one time granted widowhood's allowance.
    - b. Norm of one time granted widowhood's allowance :
    - - for the dead laborer who is still at work and having paid social security fee, the family shall receive an one time granted widowhood's allowance, that is calculated in accordance with the number of years of paying social security fee : each year is al lowanced , that is calculated in accordance with the maximum portion must not exceed 12 months SSf salary.
      for the family of those who worked in the state - run sector, the allowance is calculated by the SSf salary of the last month before the each. for those who worked in non-state sectors different time - by the average SSf salary (as guided in point b.2, he aving IV)
    - - for the dead person receiving monthly pension or allowance accident or occupational disease, the family shall receive an one time granted widowhood's allowance that is calculated in accordance with the granted retirement pension and allowance as well as the time of receiving them : If the death occurs in the first year - the one time granted allowance shall be equal to 12 month pension or allowance. If the death occurs after one year, then for each year from the second year the one time granted widowhoo d's allowance shall be reduced by 1 month pension or allowance. But the minimum amount to be granted should be equal to 3 month pension or allowance.
    Example :
    - 1. Mr. A, a pensioner died after 14 months of his retirement. The allowance shall be equal to 11 month retirement pension (12 months - 1 month of being allowanced)
    - 2. Mr.B, a pensioner has been retired for 10 years, having monthly retirement pension of the 10th year of VND 306.678. He died in the last month of the 10th year. The allowance shall be : VND 306.678 x (12 months - 10 months) = VND 607.356. As regulated above, the one time granted widowhood's allowance should be at least equal to 3 month pension. SO the granted allowance shall be VND 303.678 x 3 = VND 911.034
- VI. for those who are on social security before the implementation of decree No 43/CP
  - 1. People who are receiving pension, monthly disability allowance working accident or occupational disease allowances : rubber industry's workers receiving monthly allowance and those who are entitled to monthly widowhood's allowance before the implementa tion of the Decree No 43/CP shall keep receiving social security in compliance with the previous regulations of the Council of Ministers (Now - the government) with allowance norms to be amended by the new regulations of the government.
  - 2. In case of the death of : pensioners, people receiving disability allowance, allowance for working accident (1st and 2nd ranges) and occupational disease (1st and 2nd ranges) the funeral and widowhood's allowance system, stipulated in this circular sha ll be applied.
  - 3. for the death of rubber industry's workers, the families shall receive only funeral expenditure as stipulated in this circular.
C. provisions for implementation
- I. System of allowance and medical insurance
  The following objects shall be entitled to regional allowance, high cost of living allowance (if any) and being insured for health :
  - - Pensioners
  - - People who are receiving monthly disability allowance
  - - People who are receiving month allowance for working accident and occupational disease.
  - - Workers of Rubber industry who are receiving monthly allowance
- II. Counted time for receiving social security :
  The total of years of paying social security fee is the time to be counted for receiving social security :
  - - for governmental employees and those who have transferred from the state - run sector to another non-state sectors but have not received yet discharge pay. The actual working time on the state pay = roll (without any equivalent coefficient) with social security fee paid in compliance with the state regulations stipulated for each period is considered as the time of paying social security fee.
  - - for Laborers of non - state sectors who were the objects of compulsory social security and have paid social security fee before the promulgation of this circular and keep implementing compulsory social security at present. Time of paying fee is the ti me to be counted for receiving social security.
- III. Dealing with violations
  - 1. Suspense of the rights on social security :
    The rights on social security shall be suspended in the following cases :
    - - Being take into temporary custody or in prison
      After temporary custody or prison expired, the rights on social security shall be - considered, in case of innocence, the laborer shall be entitled to receive the arrears of all monthly retirement pensions or allowances. for the suspended time.
    - - When any cheating action concerning social security found, the norm of allowance will be reduced or completely wiped off subject to the seriousness of the violation.
  - 2.Termination of the rights on social security :
    Rights on social security shall be terminated for the people who :
    - - Being put in prison for the crime of high treason
    - - Went abroad or stayed living there in an illegal way.
    - - Receiving social security by a feigned file
  - 3. Employers, laborers, the staff members of social security organizations violating the rule and regulations of social security shall be punished by administrative measures or prosecuted for the criminal charge subject to be valid at present laws.
- IV. Implementing power
  - - While the social security organizations, as stipulated in the Decree N0 43/CP have not been set up yet, the Vietnam Trade Union shall be responsible for managing and implementing the systems concerning sick, pregnancy and childbirth, working accident an d occupational disease. The Ministry of Labour - Invalid and Social Affair shall answer for the management and implementation of retirement, widowhood allowance systems (including the previous system for loosing of working capacity).
  This circular shall go into effect from 1 January 1994. Except 3 systems of sickness, maternity, working accident and occupational disease allowances that shall go into effect from 1 July 1994. All previously issued provisions on social security which ar e contrary to this Circular shall be hereby repealed.
  Any problem arise from the implementation should be reported to the Ministries of Labour - Invalid and Social Affair, finance for consideration and settlement.

for the Ministry of finance for the Ministry of Labour, Invalids and Social Affairs Vice Minister Vice Minister

TAO HUU PHUNG LE DUY DONG

Annex

(Attaching to Interministerial circular N0 21/LB-TT dated 18 June 1994 of the Ministries of Labour. Invalid and social Affairs - finance)

How to calculate the average SSf salary and retirement pension.

Example 1 : An official having 35 years of paying social security fee retired on 01 Jan. 1994. The evolution of his monthly salaries for the last 10 years before retirement is :

- from 1 Sep. 1985 to 31 Dec. 1985 : VND 390 - from 1 Jan. 1986 to 31 Dec. 1989 : VND 425 - from 1 Jan. 1990 to 31 Mar. 1993 : VND 463 - from 1 Apr. 1993 transferred to the new salary system with coefficient of 3.91

Monthly retirement pension is calculated as follows :

1. Average SSf salary :

a. Translating the salaries received sine September 1985 into new salary :

Salary of VND 390 is translated into: 3.06 x VND 120,000 = VND 367,200

Salary of VND 425 is translated into: 3.35 x VND 120,000 = VND 402,000

Salary of VND 463 is translated into: 3.91 x VND 120,000 = VND 469,200

b. Total SSf salary from Sep, 1985 to Des. 1993 :

- from Sep. 1985 : 4 month x VND 367,200 = VND 1,468,800

- from Jan. 1986 to Dec. 1989: 48 months x VND 469,200 = VND 19,296,000

- from Jan. 1990 to Dec 1993 : 48 months x VND 469,200 = VND 22,521,600 htmlhtmlhtmlhtmlhtmlhtmlhtmlhtmlhtml--

Total : 100 months, VND 43,286,400

c. Average SSf salary :

VND 43,286,400 : 100 months = VND 439,864.00

2. Monthly retirement pension is equal to 75% the average SSf salary :

VND 432,864,00 x 75% = VND 324,648,00

Example 2 : A demobilized officer (first lieutenant having 24 years of military service) working as civil servant, having 32 years of paying social security fee retired on 1 April 1994. The evolution of his monthly salary for the last 10 years before retirement is :

- from 1 Sep. 1985 to 31 Mar. 1986 - first lieutenant's salary of VND 350 with seniority allowance for military service equal to 24% monthly salary.

- from 1 April 1986 to 31 Mach 1990 : VND 390

- from 1 April 1990 31 March 1993 : VND 425

- from 1 April 1990 transferred to the new salary system with coefficient of 3.35

Monthly retirement pension is calculated as follows :

1. Average SSf salary :

a. Translating the salaries received since Sep. 1985 into new salary :

- first lieutenant's salary : VND 350 is translated into : 3.8 x 120,000 = VND 456,000

- Salary of VND 390: 3.06 x VND 120,000 = VND. 367,200

- Salary 0f VND 425: 3.35x VND 120,000 = VND. 402,000

b. Total SSf salary from Sep. 1985 to Mar 1994 :

- from Sep. 1985 to Mar. 1986 :

Salary of army rank: VND 456,000

Seniority allowance (24%) : VND 109,440 htmlhtmlhtml-- 565,440

7 months x VND 565,440 = VND 3,958,080

- from April 1986 Mach 1990 : 48 months x VND 367,200 = VND 17,625,600

- from Apr 1990 Mar 1993 : 36 months x VND 402,000 = VND 14,472,000

- from Apr 1993 Mar. 1994 : 12 months x VND 402,000 = VND 4,824,000 htmlhtmlhtmlhtml-- Total:103 months, VND 40,879,680

c. the average SSf salary :

VND 40,879.680 : 103 months = VND 396,890

2. Monthly retirement pension is equal to 75% the average SSf salary so it will be :

VND 396,860 x 75% = VND 297,668

Example 3 : The vice - chairman of a provincial of provincial People's committee having 40 years of paying social security fee, retired on 1 Sep.1995. The evolution of his salaries for the last 10 years before retirement is:

-from Sep.1985 to Oct.1986 (in the post of the director of provincial Education service : VND. 513

- from Nov. 1986 to Nov. 1989 (in the same post) : VND 555

- from Dec. 1989 to Mar. 1993 (in the post of vice - chairman of the People's committee) : VND 599

- from Apr. 1993 to Aug. 1995 : new salary with a coefficient of 6.2

Monthly retirement pension is calculated as follows :

1. Average SSf salary :

a. Translating the salaries received since Sep. 1985 into new salary :

- Salary of VND 513 (director of Provincial service): coefficient 4.19

function allowance (director of provincial service): coefficient 0.7 htmlhtmlhtmlhtml- : 4.89 x VND 120,000 = VND 586,800

- Salary of VND 555 : coefficient 4.75 function allowance : coefficient 0.7 htmlhtmlhtmlhtml--- 5.45 x VND 120,00 = VND 654,000

- Salary of VND 599 ( vice - chairman of the People's committee): 6.2 x VND 120,000 = VND 744,000

b. Total SSf salary from Sep. 1985 to Aug. 1995 : from Sep. 1985 Dec. 1986 : 14 months x VND 586,800 = VND 8,215,200

- from Nov. 1986 to Nov. 1989 37 months x VND 654,000 = VND 24,198,000

- from Dec. 1989 to Aug. 1995 :

69 months x VND 744,00 = VND 51,336,000 htmlhtmlhtmlhtml--

Total :120 months x VND 83,749,200

c. Average SSf salary : VND 83,749,200 : 120 months = VND 697.910

2. Monthly retirement salary is equal to 75% the average SSf salary, so it will be : VND 697.910 x 75% = VND 523,433

Example 4 : A mechanicant having 25 years of paying social security fee, retired of paying social security fee, retired on 1. Sep. 1998. The evolution of his salaries for the last 10 years before retirement is :

- from Sep. 1988 to Oct. 1992 (the 5th class mechanicant) : VND 315.50

- from Nov. 1992 to Mar. 1993 (the 6th class mechanicant) : VND 336.00

- from Apr.. 1993 (the class of mechanicants) : transferred into new salary with the coefficient 0f 2.67.

Monthly retirement pension is calculated as follows :

1. Average SSf salary :

a. Translating the salaries the received since Sep. 1988 into new salary :

- Salary of VND 315.50 : 2.18 x VND 120,00 = VND 261,600

- Salary of VND 336.00 : 2.67 x VND 120,00 = VND 320,400

b. Total SSf salary from Sep. 1988 to Aug. 1989 :

from Sep. 1988 Dec. 1992 :

50 months x VND 261,600 = VND 13,080,000

- from Nov. 1992 to Aug. 1998 : 70 months x VND 320,400 = VND 22428,000 htmlhtmlhtmlhtml--

Total : 120 months x VND 35,508,000

c. The Average SSf salary : VND 35,508,000 : 120 months = VND 295.900

2. Monthly retirement pension is equal to 65% the average SSf salary, so it will be : VND 295,900 x 65% = VND 192,335

Example 5 : A retired worker who has been on the state pay - roll from Jan. 1962 to feb. 1989 ; then worked for an enterprise with foreign investment capital from Mar. 1989 to May 1994.

1. Average SSf salary for the period working in the state - run sector :

- from Sep. 1985 to feb. 1989 ( the 5th class worker) : VND. 315.50 Being translated into new salary in compliance with Decree No. 26/CP, it will be :

2.18 x VND 120,000 = VND 261,600

- Total value of the SSf salary for the period for the state pay - roll :

VND 261,600 x 326 months = VND 85,281,600

2. Average SSf salary for the period working in the enterprise with foreign investment capital :

- from Mar. 1989 to Jun. 1991 : USD 50, with exchange rate at the moment of retirement (VND 10,800 per one dollar) this salary is equivalent to VND 540,00

So : VND 540,000 x 28 months = VND. 15,130,000

- from Jul. 1991 to May 1994 : USD 65, equivalent to VND 702,000 (with the same exchange rate), so :

VND 702, 000 x 34 months = 23,868,00

Total : 62 months and VND 38,988,00

3. The average SSf salary, commonly taken for both working periods (inside and outside the state - run sector).

- Total value of the SSf salary :

VND 85,281,600 + VND 38,988,000 = VND 124,869,600

- Total time of paying social security fee :

326 months + 63 months = 388 months. - commonly taken average SSf salary :

VND 124,869,600 : 338 months = VND 320,282.47

4. Monthly retirement salary is equal to 75% the average SSf salary, so it will be :

VND 320,282.47 x 75% = VND 240,211.85

A. Objects for Application

I. officials, government employees of administration and non-productive sector

II. Officials, workers of business enterprises and laborers in other organizations.

B. Systems of social security

I. Sickness allowance system

1. Conditions for receiving sickness allowance :

2. Duration of time spent away from work with sickness allowance instead of salary :

3. Allowance norm :

II. Maternity allowance system

1. Conditions for receiving allowance

2. The allowed time spent away from work :

3. Allowance norm :

III. Working accident and occupational Disease allowance systems.

1. Working accident allowance system

2. Occupational disease allowance system :

IV. Retirement allowance system

1. Monthly retirement pension

2. One time granted retirement allowing system

V. funeral and widowhood allowance system

1. funeral expenditure

2. Monthly widowhood's allowance

3. One time granted widowhood's allowance

VI. for those who are on social security before the implementation of decree No 43/CP

C. provisions for implementation

I. System of allowance and medical insurance

II. Counted time for receiving social security :

III. Dealing with violations

2.Termination of the rights on social security :

3. Employers, laborers, the staff members of social security organizations violating the rule and regulations of social security shall be punished by administrative measures or prosecuted for the criminal charge subject to be valid at present laws.

IV. Implementing power

Annex

How to calculate the average SSf salary and retirement pension.