Thông tư 01/2016/TT-BLDTBXH

CIRCULAR

DETAILING AND GUIDING THE IMPLMENTATION OF SOME ARTICLES OF THE LAW ON SOCIAL INSURANCE ON VOLUNTARY SOCIAL INSURANCE

Pursuant to the Law on Social Insurance dated 20/11/2014;

Pursuant to Resolution No. 93/2015/QH13 dated 22/06/2015 of the National Assembly on implementing the policy on entitlement to one-time social insurance for the employees;

Pursuant to Decree No. 106/2012 / ND-CP dated 20/12/2012 of the Government regulating the functions, tasks, powers and organizational structure of the Ministry of Labour - Invalids and Social Affairs;

Pursuant to Decree No. 134/2015/ND-CP dated 29/12/2015 of the Government detailing some articles of the law on social insurance on voluntary social insurance;

Considering the recommendations of the Director General of Social Insurance Department;

The Minister of Labour - Invalids and Social Affairs issues this Circular detailing and guiding the implementation of some articles of the Law on social insurance on voluntary social insurance;

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular details the implementation of Article 76 of the Law on social insurance and some Articles of Decree No. 134/2015/ND-CP dated 29/12/2015 of the Government detailing some Articles of the Law on social insurance on voluntary social insurance (hereafter referred to as Decree No. 134/2015/ND-CP).

Article 2. Subjects of application

1. The persons participating in voluntaty social insurance specified in Clause 1, Article 2 of Decree No. 134/2015/ND-CP are the Vietnamese citizens from full 15 years of age or older and are not the persons participating in voluntaty social insurance in accordance with regulations of law on social insurance, including:

a) The employees working under labor contract with duration of less than 03 months before 01/01/2018; the employees working under labor contract with duration of less than 01 month from 01/01/2018 onwards;

b) The persons working part-time at hamlets, villages, residential groups, areas and quarters;

c) Domestic workers;

d) The persons participating in production, business and services without salary

dd) Cooperative members not entitled to salary or remuneration working in cooperatives and unions of cooperatives;

e) Farmers and employees creating jobs for themselves including the persons organizing the working activities to have income for themselves and their families.

g) Employees meeting the conditions of age but not the time of payment to enjoy their pension in accordance with regulations of law on social insurance;

h) Other participants.

The persons stipulated above are generally called the participants of voluntary social insurance.

2. Agencies, organizations and individuals involved in voluntary social insurance.

Chapter II

BENEFITS OF VOLUNTARY SOCIAL INSURANCE

Section 1. RETIREMENT BENEFITS

Article 3. Monthly pension

1. The monthly pension is calculated under the provisions of Clause 1, Article 3 of Decree No. 134/2015/ND-CP.

2. The rate of monthly pension is done under the provisions of Clause 2, Article 3 of of Decree No. 134/2015/ND-CP When calculating the rate of monthly pension, if the time of payment of social insurance premium has odd months from 01 to 06 months, it shall be deemed as a half year or 01 year if from 07 to 11 months.

Ex 1: Mr A shall enjoy his pension from 10/2016, his time of payment of social insurance premium is 28 years and 03 months, and the average monthly income for payment of social insurance premium is 5,000,000 dong/month. Mr A’s monthly pension is calculated as follows:

- Mr A’s rate of monthly pension:

+ Mr A’s time of payment of social insurance premium is 28 years and 03 months; the number of odd month is 03 months which is deemed as a half year. Thus, the number of year of payment of social insurance premium to calculate Mr A’s is 28.5 years.

+ The first 15 years is calculated by 45%;

+ From the 16^th year to the 28.5^th year is 13.5 years, thus: 13,5 x 2% = 27%;

Mr A’s rate of monthly pension is 45% + 27% = 72%.

- Mr A’s monthly pension is:

72% x 5,000,000 dong/month = 3,600,000 dong/month.

Ex 2: Mrs A shall enjoy his pension from 5/2017, her time of payment of social insurance premium is 26 years and 10 months, and the average monthly income for payment of social insurance premium is 3,000,000 dong/month. Mrs A’s monthly pension is calculated as follows:

- Mrs A’s rate of monthly pension:

+ Mrs A’s time of payment of social insurance premium is 26 years and 10 months; the number of odd month is 10 months which is deemed as 01 year. Thus, the number of year of payment of social insurance premium to calculate Mrs A’s is 27 years.

+ The first 15 years is calculated by 45%;

+ From the 16^th year to the 27^th year is 12 years, thus: 12 x 3% = 36%;

+ The total 02 rates above is: 45% + 36% = 81%;

Mrs A’s rate of monthly pension is calculated maximally by 75% in proportion to 25 years of payment of social insurance premium.

- Mrs A’s monthly pension is:

75% x 3,000,000 dong/month = 2,250,000 dong/month.

In addition to the above monthly pension, Mrs A still enjoys the one-time subsidy upon retirement for a number of years of payment of social insurance premium greater than 25 years. The one-time subsidy upon Mrs A’s retirement is calculated as:

(27 - 25) x 0.5 month x 3,000,000 dong/month = 3,000,000 dong.

Ex 3: Mr B shall enjoy his pension from 6/2019, his time of payment of social insurance premium is 29 years and 07 months, and the average monthly income for payment of social insurance premium is 7,000,000 dong/month. Mr B’s monthly pension is calculated as follows:

- Mr B’s rate of monthly pension is calculated as follows:

+ Mr B’s time of payment of social insurance premium is 29 years and 07 months; the number of odd month is 07 months which is deemed as 01 year. Thus, the number of year of payment of social insurance premium to calculate Mr B’s is 30 years.

+ The first 17 years is calculated by 45%;

+ From the 18^th year to the 30^th year is 13 years, thus: 13 x 2% = 26%;

Mr B’s rate of monthly pension is 45% + 26% = 71%.

- Mr B’s monthly pension is:

71% x 7,000,000 dong/month = 4,970,000 dong/month.

Ex 4: Mrs C shall enjoy his pension from 02/2018, his time of payment of social insurance premium is 28 years and 01 month, and the average monthly income for payment of social insurance premium is 6,000,000 dong/month. Mrs C’s monthly pension is calculated as follows:

- Mrs C’s rate of monthly pension:

+ Mrs C’s time of payment of social insurance premium is 289 years and 01 month; the number of odd month is 01 month which is deemed as a half year. Thus, the number of year of payment of social insurance premium to calculate Mrs C’s is 28.5 years.

+ The first 15 years is calculated by 45%;

+ From the 16^th year to the 28.5^th year is 13.5 years, thus: 13.5 x 2% = 27%;

Mrs C’s rate of monthly pension is 45% + 27% = 72%.

- Mrs C’s monthly pension is:

72% x 6,000,000 dong/month = 4,320,000 dong/month

Article 4: Retirement benefits to the persons who had a time of payment of voluntary social insurance premium

1. The time to calculate the retirement benefits to the persons who had a time of payment of voluntary social insurance premium is the total time of payment of compulsory and voluntary social insurance premium, excluding the time calculated for entitlement to one-time social insurance.

2. Where the persons participating in voluntary social insurance have the time of entitlement to retirement benefits from full 20 years or more with under 20 years of payment of compulsory social insurance premium, the condition for pension entitlement age is 60 for male employees and 55 for female employees.

3. Where the persons participating in voluntary social insurance have full 20 years of payment of compulsory social insurance premium, the condition for pension entitlement age shall comply with the regulations of law on compulsory social insurance.

Ex 5: Mrs D has the time of retirement benefits of 22 years of which the time of payment of compulsory social insurance premium is 20 years and 03 months and during the time of 20 years and 03 months, she has 16 years working at place with area allowance coefficient as 0.7. Thus, the condition for Mrs D’s pension entitlement age is full 50 years.

4. Where the female employees working full time or part time at communes, wards or towns participate in compulsory social insurance and are eligible for entitlement to pension in accordance with the provisions in Clause 3, Article 54 of the Law on social insurance but reserve the time of payment of social insurance premium and continue to participate in voluntarary social insurance, they shall be entitled to their pension upon request.

The time calculated for pension shall comply with the provisions in Clause 1 of this Article. Where this period of time is under 20 years, the monthly pension is based on the provisions in Clause 4, Article 56 of the Law on social insurance. Where this period of time is from full 20 years or more, the monthly pension is based on the provisions in Article 74 of the Law on social insurance.

Ex 6: Mrs E is a Vice President of communal Women's Union. She has 15 years of payment of compulsory social insurance premium and is full 55 years of age. She then reserves the time of payment of social insurance premium and continues to participate in voluntary social insurance for additional 02 years and 08 months and requests the entitlement to pension. Thus, Mrs E shall enjoy her pension with the time calculated for pension entitlement as 17 years and 08 months.

5. The average salary and monthly income for payment of social insurance premium to calculate the one-time pension and allowances shall comply with the provisions in Clause 4, Article 5 of Decree No. 134/2015/ND-CP.

Ex 7: Mr E has 15 years and 06 months of payment of compulsory social insurance premium based on his average salary as 5,100,000 dong/month; he has a period of time of 10 years and 09 months of payment of compulsory social insurance premium with the total monthly incomes for payment of voluntary social insurance premium (which has been adjusted on the basis of consumer price index) of 774,000,000 dong. The average salary and monthly income for payment of social insurance premium are: 

Article 5. Time for pension entitlement

1. The time for pension entitlement is based on the provisions of Article 76 of the Law on social insurance and Clause 1, Article 6 of Decree No. 134/2015/ND-CP and is done as follows:

a) The time for pension entitlement is the 1^st date of the month succeeding the month of birth the participants of social insurance are eligible for entitlement to their pension in accordance with the provisions under Point a and b, Clause 2, Article 5 of Decree No. 134/2015/ND-CP Where the month of birth is December, the time to enjoy the pension is the 1^st date of January of the year succeeding the year the participants of social insurance are eligible for entitlement to their pension.

Ex 8: Mrs D in example 5 was born on 01/12/1967. She has 22 years of payment of social insurance premium from 7/1995 to 6/2017. The time Mrs D shall enjoy her pension is from 01/01/2018.

b) Where the date and month of birth of the participants of social insurance cannot be defined (only the year of birth is defined), the time to enjoy the pension is 01 of January of the year succeeding the year the participants of social insurance are eligible for entitlement to their pension in accordance with the provisions under Point a and b, Clause 2, Article 5 of Decree No. 134/2015/ND-CP

c) Where the participants of social insurance are eligible for entitlement to their pension in accordance with the provisions under Point a and b, Clause 2, Article 5 of Decree No. 134/2015/ND-CP but still continue their participation in voluntary social insurance, the time to enjoy their pension is the 1^st date of the month succeeding the month of stoppage of payment of voluntary social insurance premium to request the pension entitlement.

Ex 9: Mr G was born on 21/8/1957, by the end of 8/2017, he has 20 years of payment of social insurance premium. Mr G still participates in voluntary social insurance to the end of 12/2017. In 12/2017, Mr G requests his pension entitlement. The time Mr G enjoys his pension is from 01/01/2018.

Ex 10: Mrs E in example 6 continues her participation in voluntary social insurance to the end of 02/2018 and stops payment of premium and in 7/2018, she requests her pension entitlement. The time Mrs E shall enjoy her pension is from 01/3/2018, Mrs E shall receive the back pay of unreceived pension of the months without interests.

2. Where the participants of voluntary social insurance wish to make one-time payment voluntarily for the years of missing payment in accordance with the provisions in Clause 2, Article 8 of this Circular to meet the conditions for their pension entitlement, the time to enjoy the pension is from the 1^st date of the month succeeding the month of full payment of premium for the years of missing payment.

Ex 11: In 8/2016, Mrs G is full 55 years of age and has 17 years and 06 months of payment of social insurance premium. Mrs G wishes to make one-time payment of voluntary social insurance premium for the years of missing payment to meet the condition for entitlement to her monthly pension. Mrs G has fully paid the amount of the years of missing payment to the social insurance agency. Thus, the time Mrs G shall enjoy her pension is from 01/9/2016.

Ex 12: Mr H shall be full 60 years of age and has 18 years and 05 months of payment of social insurance premium. Mr H wishes to make one-time payment of voluntary social insurance premium for the years of missing payment to meet the condition for entitlement to her monthly pension. Mr H does not fully pay paid the amount of the years of missing payment to the social insurance agency until 6/2018. Thus, the time Mr H shall enjoy his pension is from 01/7/2018.

Article 6. One-time social insurance

1. The persons participating in voluntary social insurance shall enjoy the one-time social insurance in accordance with the provisions in Clause 1, Article 77 of the Law on social insurance, Clause 1, Article 1 of Resolution No. 93/2015/QH13 dated 22/06/2015 of the National Assembly on implementation of policy on entitlement to one-time social insurance for the employees and Article 7 of Decree No. 134/2015/ND-CP.

2. Rate of entitlement to one-time social insurance:

a) The rate of entitlement to one-time social insurance complies with the provisions under Point a and b, Clause 2, Article 77 of the Law on social insurance, Clause 3, Article 1 of Resolution No. 93/2015/QH13 dated 22/06/2015 of the National Assembly on implementation of policy on entitlement to one-time social insurance for the employees.

b) The rate of entitlement to one-time social insurance of the participants of social insurance who have less than one year (12 months) of payment of social insurance premium is calculated by 22% of the total income of months for payment of social insurance premium. The maximum rate is equal to 02 months of average income for payment of social insurance premium in which the monthly income paid for social insurance premium to calculate the one-time social insurance is adjusted on the basis of consumer price index in accordance with the provisions in Clause 2, Article 4 of Decree No. 134/2015/ND-CP

c) Upon calculating the rate of entitlement to one-time social insurance, if the time of payment of social insurance premium has odd month, then from 01 to 06 months, it is deemed as a half year or 01 year if from 07 to 11 months.

In case of time of payment of social insurance premium before and after 01/01/2014 but the time of payment before 01/01/2014 has odd months, such odd months shall be switched to the period of payment of social insurance premium from 01/01/2014 onwards as a basis for calculating the one-time social insurance.

Ex 13: Mrs H has 10 years and 08 months of payment of social insurance premium with her average salary and monthly income of 4,500,000 dong/month for payment of social insurance premium. In 8/2016, she requests the entitlement to one-time social insurance. Mrs H’s process of payment of social insurance premium is as follows:

- From 01/2003 to 8/2009: Paid the compulsory social insurance premium (06 years and 08 months).

- From 9/2009 to 8/2013: Paid the voluntary social insurance premium (04 years).

Mrs H’s total time of payment of social insurance premium rounded is 11 years. Thus, Mrs H’s rate of entitlement to one-time social insurance is calculated as follows:

1.5 month/year x 11 years x 4,500,000 dong/month = 74,250,000 dong

Ex 14: Mr K has 09 years and 05 months of payment of social insurance premium (including 05 years and 02 months of payment of social insurance premium before 01/01/2014) with the average monthly income of 5,000,000 dong for payment of social insurance premium. Mr K’s rate of entitlement to one-time social insurance is calculated as follows:

- Mr K has 05 years and 02 months of payment of social insurance premium; 02 odd months shall be switched to the period from 2014. Thus, the number of month of payment of social insurance premium to calculate Mr K’s one-time social insurance is 05 years before 2014 and 04 years and 05 months of payment of social insurance premium for the stage from 2014 onwards (4.5 years)

- Mr K’s rate of entitlement to one-time social insurance is calculated as follows:

(1.5 month/year x 5 years + 2 months/year x 4.5 years) x 5,000,000 dong/month = 82,500,000 dong.

d) The rate of entitlement to one-time social insurance does not include the amount provided by the State as assistance for payment of voluntary social insurance premium, except for the case specified under Point c, Clause 1, Article 77 of the Law on social insurance. The calculation of rate of entitlement to one-time social insurance is done in accordance with the provisions under Point a of this Clause, then minus the amount provided by the State as assistance for payment of voluntary social insurance premium.

The amount provided by the State as assistance for payment of voluntary social insurance premium is calculated by the total amount provided by the State as assistance of each month for payment of voluntary social insurance premium. The monthly assistance is calculated by the following formula:

Ex 15: Mr K in example 14, in 09 years and 05 months of payment of social insurance premium, there is 01 year and 03 months (15 months) of participation in voluntary social insurance with the assistance of payment of premium provided by the State (assuming that the State provides the assistance of 700,000 dong/month based on the poverty line of rural areas and the assistance percentage to Mr K as 10%). Mr K’s rate of entitlement to one-time social insurance is calculated as follows:

- Total amount provided by the State as assistance for Mr K:

(0.22 x 700,000 dong/month x 10%) x 15 months = 231,000 dong

- Mr K’s rate of entitlement to one-time social insurance:

82,500,000 dong – 231,000 dong = 82,269,000 dong

Section 2. SURVIVORSHIP BENEFITS

Article 7. Survivorship benefits for the relative of participant of voluntary social insurance who died but had a period of time of payment of compulsory social insurance premium

1. The time to calculate the survivorship benefits for the participant of voluntary social insurance who had a period of time of payment of compulsory social insurance premium is the total time of payment of compulsory social insurance premium and voluntary social insurance premium but excluding the time calculated for entitlement to one-time social insurance.

2. Funeral allowances:

a) The person in charge of funeral shall receive the funeral allowances when the participant of voluntary social insurance is subject to one of the cases specified in Clause 2, Article 8 of Decree No. 134/2015/ND-CP.

b) The rate of funeral allowances is 10 times of base salary at the time the participant of voluntary social insurance or the person enjoying pension dies or is declared dead by the Court.

3. The monthly survivorship allowances are done in accordance with the provisions in Clause 3, Article 8 of Decree No. 134/2015/ND-CP.

4. One-time survivorship allowances

a) When the participants of voluntary social insurance dies or is declared dead by the Court but their relatives are not subject to the monthly survivorship allowances in accordance with the provisions in Clause 3, Article 8 of Decree No. 134/2015/ND-CP or are subject to the monthly survivorship allowances in accordance with the provisions in Clause 3, Article 8 of Decree No. 134/2015/ND-CP but their relatives wish to enjoy the one-time survivorship allowances in accordance with the provisions in Clause 4, Article 8 of Decree No. 134/2015/ND-CP their relatives shall be entitled to one-time survivorship allowances.

b) The rate of one-time survivorship allowances is done in accordance with the provisions in Clause 2, Article 81 of the Law on social insurance.

c) When calculating the one-time survivorship allowances for the persons who are paying the social insurance premium or are reserving the time of payment of social insurance premium die but the time of payment of social insurance premium has odd months, then from 01 to 06 months, it is deemed as a half year or 01 year if from 07 to 11 months.

If before 01/01/2014, the time of payment of social insurance premium has odd months, such odd months are switched to the period from 01/01/2014 onwards as a basis for calculating the one-time survivorship allowances.

Ex 16: Mr M died from disease and has a period of time of payment of social insurance premium from 6/2007 to 11/2017 with his average salary and monthly income of 6.500.000 dong/month for payment of social insurance premium. The one-time survivorship allowances for Mr M’s relative is calculated as follows:

- Mr M has 06 years and 07 months of payment of social insurance premium in the period before 01/01/2014 and has 03 years of 11 months of payment of social insurance premium in the period from 01/01/2014 onwards.

- The rate of one-time survivorship allowances for Mr M’s relative is calculated as follows (payment for 06 years made before 2014 and payment for 4.5 years made from 2014 onwards):

(1.5 months/year x 6 years + 2 months/year x 4.5 year) x 6.500.000 dong/month= 117,000,000 dong.

d) The rate of one-time survivorship allowances for the relative of person who is enjoying his pension but died shall comply with the provisions in Clause 3, Article 81 of the Law on social insurance and is equal to at least 03 months of current pension.

Ex 17: Mr N participates in voluntary social insurance and has 15 years and 09 months of payment of compulsory social insurance premium. He shall enjoy pension from 6/2024. In 7/2024, Mr N died with his current pension of 6,500,000 dong/month before his death. The rate of one-time survivorship allowances for Mr N’s relative is calculated as follows

48 months x 6,500,000 dong/month = 312,000,000 dong

Ex 18: Mr P shall enjoy his pension from 01/2029. In 5/2030, he died (had enjoyed for 16 months) with his current pension of 5,950,000 dong/month before his death. The rate of one-time survivorship allowances for Mr P’s relative is calculated as follows:

[48 months - (16 months - 2 months) x 0.5] x 5,950,000 dong/month = 243,950,000 dong

Ex 19: Mrs N shall enjoy her pension from 6/2020 with 20 years of payment of voluntary social insurance premium (She has not participated in compulsory social insurance). In 7/2028, Mrs N died (she enjoyed her pension for 96 months) with her current pension of 5,000,000 dong/month before her death. The rate of one-time survivorship allowances for Mrs N’s relative is calculated as follows:

[48 months - (96 months - 2 months) x 0.5] x 5,000,000 dong/month = 5,000,000 dong.

Thus, Mrs N’s relative shall receive the one-time survivorship allowances equal to at least 03 months of current pension:

3 months x 5,000,000 dong/month = 15,000,000 dong.

Chapter III

SOCIAL INSURANCE FUND

Article 8. Mode of payment

1. The persons participating in voluntary social insurance can choose one of the modes of payment specified under Points a, b, c, d and dd, Clause 1, Article 9 of Decree No. 134/2015/ND-CP.

2. For the persons who participate in social insurance meet the conditions for age to enjoy their pension but the time of payment of social insurance premium is no more than 10 years (120 months). In addition to choosing one of the modes of payment specified in Clause 1 of this Article, they can choose the mode of one-time payment for full 20 years of payment to enjoy pension.

Ex 20: Mr Q shall be full 60 years of age in 8/2016 and he has 08 years of payment of social insurance premium. Mr Q wishes to continue his participation in voluntary social insurance to meet the conditions for entitlement to monthly pension and chooses the mode of payment of one time for every 02 years for the period from 9/2016 to 8/2018. In 9/2018, Mr Q has full 10 years of payment of social insurance premium and he makes one-time payment for the 10 years of missing payment. Thus, by the end of 9/2018, Mr Q is 62 years and 01 month of age and has 20 years of payment of social insurance premium and meets the conditions for prescribed pension entitlement. The time to calculate Mr Q’s pension is from 10/2018.

Ex 21: Mrs Q shall be full 55 years of age in 3/2017 and she has 15 years and 09 months of payment of social insurance premium. Mrs Q wishes to continue her participation in voluntary social insurance to meet the conditions for entitlement to monthly pension and chooses the mode of payment of one time for every 06 months. In 9/2017, Mrs Q is 55 years and 06 months of age and has 16 years and 03 months of payment of social insurance premium. Because Mrs Q has her savings, in 10/2017, she chooses the mode of one-time payment for the 03 years and 09 months of missing payment and makes payment right in the current month. Thus, by 10/2017, Mrs Q is 55 years and 07 months of age and has 20 years of payment of social insurance premium and meets the condition for prescribed pension entitlement. The time to calculate Mrs Q’s pension is from11/2017.

Article 9. Payment rate

1. The monthly payment rate specified in Clause 1, Article 10 of Decree No. 134/2015/ND-CP is guided as follows: 

M_dt =  22%  x  M_tnt

In which:

- M_dt: Monthly payment rate of social insurance premium.

- M_tnt: Monthly income chosen by the participant of voluntary social insurance.

M_tnt = CN + m x 50,000 (dong/month)

In which:

- CN: Poverty line of rural areas at the time of payment (dong/month).

- m: Natural parameter valued from 0 to n

The lowest monthly income the participant of voluntary social insurance chooses is equal to the poverty line of poor household or 20 times of base salary maximally.

From 01/2016 to 12/2020, the lowest monthly payment rate is 154,000 dong/month; from 01/2016 to 04/2016, the highest monthly payment rate is 5,060,000 dong/month; from 5/2016 onwards, the highest monthly payment rate is 5,324,000 dong/month until the Government provides for the new base salary.;

Ex 22: Mrs P registers to participate in voluntary social insurance from 5/2016 with her chosen monthly income of 4,000,000 dong/month, mode of monthly payment. Mrs P’s payment rate of voluntary social insurance premium shall be 22% x 4,000,000 dong/month = 880,000 dong/month.

2. The payment rate of 03, 06 or 12 months/one time is done in accordance with the provisions in Clause 2, Article 10 of Decree No. 134/2015/ND-CP.

Ex 23: Mrs P in example 22, until 9/2016, she registers to participate in voluntary social insurance with her chosen monthly income the same as before of 4,000,000 dong/month but with the mode of payment of every 06 months/time. The payment rate of voluntary social insurance premium shall be 6 months x 880.000 dong/month = 5,280,000 dong.

3. The one-time payment rate for many years onwards in accordance with the provisions in Clause 3, Article 10 of Decree No. 134/2015/ND-CP is defined by the following formula:

In which:

- T₁: One-time payment rate for n year onwards (dong).

- M_i: Monthly income chosen by the participant of voluntary social insurance at the time of payment (dong/month).

- r: Average monthly investment interest of social insurance fund announced by the Vietnam Social Insurance of the year preceding the year of payment (%/month).

- n: Number of years of payment in advance chosen by the participants of social insurance, accepting one of the values from 02 to 05.

- i: Natural parameter valued from 1 to (n×12).

Ex 24: Mr S registers to participate in voluntary social insurance from 9/2016 with his chosen monthly income of 3,000,000 dong/month. The mode of one-time payment for 02 years onwards. Assuming that the average monthly investment interest of social insurance fund announced by the Vietnam Social Insurance of 2015 is 0.628%/month. Mr S' payment rate of voluntary social insurance for 02 years (from 9/2016 to 8/2018) is:

4. The one-time payment rate for the years of missing payment in accordance with the provisions in Clause 4, Article 10 of Decree No. 134/2015/ND-CP is defined by the following formula:

In which:

- T₂: One-time payment rate for the years of missing payment (dong).

- M_i: Monthly income chosen by the participant of voluntary social insurance at the time of payment (dong/month).

- r: Average monthly investment interest of social insurance fund announced by the Vietnam Social Insurance of the year preceding the year of payment (%/month).

- t: Number of missing months, accepting one of the value from 01 to 120.

- i: Natural parameter valued from 1 to t.

Ex 25: Mrs Q in example 21. In 10/2017, she choses the mode of one-time payment for 03 years and 09 months of missing payment with her chosen monthly income of 3,000,000 dong/month. Assuming the average monthly investment interest of social insurance fund announced by the Vietnam Social Insurance in 2016 is 0,826%/month and the monthly income chosen by Mrs Q is higher than the poverty line of rural areas stipulated by the Prime Minister at the time of 10/2017. Mrs Q’s payment rate of voluntary social insurance for 03 years and 09 months (45 months) of missing payment is:

5. The amount refunded to the participants of voluntary social insurance or their relatives in accordance with the provisions in Clause 6, Article 10 of Decree No. 134/2015/ND-CP is determined by the total amount paid in proportion to the remaining time of the mode of payment which the participants of voluntary social insurance have paid excluding the payment assistance from the State (if any) by the following formula:

In which:

- HT: Refunded amount (dong)

- M_i: Monthly income chosen by the participant of voluntary social insurance at the time of payment (dong/month).

- T: Amount of payment assistance from the State (if any).

- r: Average monthly investment interest of social insurance fund announced by the Vietnam Social Insurance of the year preceding the year of payment (%).

- n: A number of years of prior payment chosen by the participants of social insurance, accepting one of the values from 02 to 05.

- t: Remaining months of mode of payment by which the participants of voluntary social insurance has paid.

- i: Natural parameter valued from  (n×12-t+1) to (n×12).

Ex 26: Mr S in example 24. In 9/2016, he pays the voluntary social insurance premium for the two year onwards (from 9/2016 to 8/2018). However, from 01/2018, Mr S participates in compulsory social insurance. The amount refunded to Mr S determined by the total amount paid for the months from 01/2018 to 8/2018 and minus the amount of payment assistance from the State (assuming it is 123,200 dong) is:

Article 10. Change of mode of payment or monthly income for payment of voluntary social insurance premium

The participants of voluntary social insurance can change the mode of payment or monthly income for payment of voluntary social insurance premium in accordance with the provisions in Article 11 of Decree No. 134/2015/ND-CP

Ex 27: Mr T participates in voluntary social insurance from 8/2016 and registers the mode of monthly payment and the chosen monthly income of 4,500,000 dong/month with the social insurance organization. After that, Mr T wishes to switch the mode of payment to the mode of 06-month payment/time and the chosen monthly income of 5,000,000 dong/month. This change is made as early as from January 11/2016.

Article 11. Time of payment

1. The time of payment of social insurance premium for the participants of voluntary social insurance is done in accordance with the provisions in Article 12 of Decree No. 134/2015/ND-CP.

2. The time of payment of social insurance premium for the participants of voluntary social insurance to choose one of the modes of payment specified under the Points a, b, c and d, Clause 1, Article 9 of Decree No. 134/2015/ND-CP and in accordance with the provisions in Clause 1, Article 12 of Decree No. 134/2015/ND-CP

3. The payment rate in compensation for the months of late payment in accordance with the provisions in Clause 3, Article 12 of Decree No. 134/2015/ND-CP is determined by the following formula:

T₃ = M_đ x (1+r)^t

In which:

- T₃: Payment rate in compensation for the months of late payment;

- M_đ: Payment rate of 01, 03, 06 or 12 months/1 time in accordance with the provisions in Clause 1 and 2, Article 9 of this Circular.

- t: Number of months of late payment;

- r: Average monthly investment interest of social insurance fund announced by the Vietnam Social Insurance of the year preceding the year of payment (%/month);

Ex 28: Mr T in example 27 pays the voluntary social insurance premium by the mode of 06 months/time with the following payment rate:

M_đ = 5,000,000 dong/month x 22% x 6 month = 6,600,000 dong.

However, Mr T does not make payment during the period from 11/2016 to 02/2017. In 6/2017, Mr T comes to the social insurance agency to request the payment in compensation for the 06 months of missing payment. The number of month of late payment from 03/2017 to 6/2017 is 04 months. Assuming that the average monthly investment interest of social insurance fund announced by the Vietnam Social Insurance is 0.826%. Mr T’s compensation payment rate is:

6,600,000 dong x (1 + 0.00826)⁴   =  6,820,781 dong

Article 12. Assistance of social insurance premium for the participants of voluntary of social insurance

1. The assistance of social insurance premium for the participants of voluntary of social insurance in accordance with the provisions in Clause 1, Article 14 of Decree No. 134/2015/ND-CP is done as follows:

a) The assistance of monthly premium is calculated by the following formula:

M_htt = k × 22% × CN

In which:

- k: is the percentage of assistance from the State (%),specifically: k = 30% with the participants of the poor households; k = 25% of the participants of households near the poverty line; and k = 10% with other persons.

- CN: The assistance rate of monthly payment for the participants of voluntary social insurance during the period from 2018 to 2020 is 46,200 dong/month for persons of poor households; 38,500 dong/month for persons of households near the poverty line; and 15,400 dong/month for other persons.  

b) The assistance rate of payment for the participants of social insurance paying with the mode of 03, 06 or 12 months/time or one time for many years onwards is calculated by the following formula

M_ht = n × k × 22% × CN

In which:

- n: A number of months of assistance corresponding with the modes of payment of 03, 06 or 12 months/time or one time for many year onwards.

- k: is the percentage of assistance from the State (%),specifically: k = 30% with the participants of the poor households; k = 25% of the participants of households near the poverty line; and k = 10% with other persons.

- CN: Poverty line of rural areas as a basis for determining the assistance rate as the poverty line stipulated by the Prime Minister at the time of payment (dong/month).

c) Assistance rate of premium for the participants of social insurance making one-time payment for the years of missing payment:

In which:

- k: is the percentage of assistance from the State (%).

- CN: Poverty line of rural areas as a basis for determining the assistance rate as the poverty line stipulated by the Prime Minister at the time of payment (dong/month).

- r: Average monthly investment interest of social insurance fund announced by the Vietnam Social Insurance of the year preceding the year of payment (%/month).

- t: Months of missing payment, accepting one of the values from 01 to 120.

- i: Natural parameter valued from 01 to t.

The assistance amount for the participants of voluntary social insurance paid by the mode of one-time payment for the years of missing payment shall be transferred one time to the retirement and survivorship fund in the same year of payment.

Ex 29: Mrs T belongs to the households near the poverty line and participate in voluntary social insurance from 06/2018 with her chosen monthly income of 800,000 dong/month. The mode of payment is 12 months/time. Assuming that the poverty line of rural areas at the time of 6/2018 is 700,000 dong/month. Mrs T’s amount paid for voluntary social insurance premium for the period from 6/2018 to 5/2019 is:

(22% x 800,000 dong/month - 25% x 22% x 700,000 dong/month) x 12 months = 1,650,000 dong.

- From 01/2019, Mrs T no longer belongs to the poor households and the households near the poverty line. However, because she has paid the premium to the end of 5/2019, thus the difference of paid premium is not adjusted.

- From 6/2019, Mrs T switches to the mode of monthly payment with her chosen monthly income the same as before of 800,000 dong/month (assuming that the poverty line of rural areas at the time of 6/2019 is still 700,000 dong/month). Mrs T’s amount paid for voluntary social insurance premium for the period from 6/2019 is:

22% x 800,000 dong/month - 10% x 22% x 700,000 dong/month = 160,600 dong/month.

- Where Mrs T participates in voluntary social insurance continuously from 6/2018 to the end of 5/2028, the time to stop the assistance of premium to Mrs T is from 6/2028.

2. Refunding of premium assistance from the State

a) The premium assistance from the State to the persons who enjoy the one-time social insurance in accordance with the provisions in Article 7 of Decree No.134/2015/ND-CP (except for cases specified under Point c, Clause 1, Article 77 of the Law on social insurance) and the participants of voluntary social insurance shall be partially refunded with the paid premium in accordance with the provisions in Clause 6, Article 10 of Decree No. 134/2015/ND-CP is refunded to the state budget.

b) The refunded amount equals the premium assistance from the State for the participants of voluntary social insurance.

Chapter IV

IMPLEMENTATION PROVISION

Article 13. Effect

1. This Circular take effect from 04/04/2016

2. The benefits specified in this Circular shall apply from 01/01/2016.

3. The Circular No. 02/2008/TT-BLDTBXH dated 31/01/2008 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of some Articles of Decree No. 190/2007/ND-CP dated 28/12/2007 of the Government guiding the implementation of some Articles of the Law on social insurance on voluntary social insurance premium shall be invalidated from the effective date of this Circular.

Article 14. Implementation

1. People's Committees of provinces and centrally-run cities are responsible for directing the Department of Labor - Invalids and Social Affairs and relevant agencies to inspect and urge the implementation of this Circular.

2. The Vietnam Social Insurance is responsible for implementation of this Circular.

3. Any problem arising should be reported to the Ministry of Labor - Invalids and Social Affairs for review and settlement./.