Công văn 489/BHXH-BT

Pursuant to the Labor Code dated 2012, Law on Social Insurance dated 2014, Law on Health Insurance dated 2008, the law amending and supplementing a number of articles of the Law on health insurance , Law on employments dated 2013; the Decree No. 49/2013/ND-CP detailing the implementation of a number of articles of the Labor Code on salaries dated May 14, 2013 of the Government; Decree No. 05/2015/ND-CP detailing and guiding the implementation of a number of articles of the Labor Code ( hereinafter referred to as the Decree No. 05/2015/ND-CP) dated January 12, 2015; Decree No. 122/2015/ND-CP on region-based minimum salaries of employees working for enterprises, cooperative unions, cooperatives, cooperative groups, farms, households, individuals, organizations and agencies employing contract labor (hereinafter referred to as the Decree No. 122/2015/ND-CP) dated November 14, 2015 of the Government; Official Dispatch No. 26/LDTBXH-BHXH on the implementation of the Law on social insurance 2014 dated January 05, 2016 of the Ministry of Labor, War Invalids and Social Affairs , the Vietnam Social Insurance provides guidelines on the salary on which the social insurance ( hereinafter referred to as “SI”), unemployment insurance ( hereinafter referred to as "UI”) and health insurance (hereinafter referred to as “HI”) premiums are paid for employees paying their SI, HI and UI according to the salary decided by their employers and the coverage of SI as follows:

1. The monthly salary as the basis for payment for HI, SI and UI of employees who pay their compulsory social insurance according to the salary decided by their employers:

a) From January 01, 2016 onwards, the monthly salary as the basis for payment for HI, SI and UI shall be conformable with the provisions of Article 30 of the Circular No. 59/2015/TT-BLDTBXH detailing and guiding a number of articles of the Law on Social Insurance about the compulsory social insurance dated December 29, 2015 of the Ministry of Labor, War Invalids and Social Affairs

The minimum monthly salary as the basis for payment for HI, SI and UI shall be equal to the minimum region-based salary; the maximum monthly salary as the basis for payment for SI and HI shall be twenty times the base salary and the maximum monthly salary as the basis for payment for UI shall be twenty times the minimum region-based salary stipulated by the Government. From January 01, 2016, the minimum region-based salary shall be calculated in accordance with the Decree No. 122/2015/ND-CP.

The monthly salary as the basis for payment for HI, SI and UI of the employees holding the lowest positions or doing the simplest works under normal conditions shall be at least equal to the minimum region-based salary. For employees whose positions or jobs required training (including training provided by their employers), their monthly salary as the basis for payment for HI, SI and UI shall be at least 7% higher than the minimum region-based salary. For employees working in the extremely heavy, dangerous and hazardous environment, their monthly salary as the basis for payment for HI, SI and UI shall be at least 7% higher than the salary of a working holding an equivalent position or doing an equivalent job under the normal environment.

b) Where the monthly salary as the basis for payment for HI, SI and UI of State-owned single member limited liability companies and the State-owned enterprises converting into joint-stock companies by the end of 2015 are conformable with the Decree No. 205/2004/ND-CP dated December 14, 2014 of the Government, such enterprise shall continue to formulate and rank the payroll schedule; examine, supplement and adjust the labor contracts under the Decree No. 49/2013/ND-CP as the basis for paying HI, UI, SI stipulated in point a, section 1 hereof; where the pay scale , payroll schedules, negotiable salary, allowances and others stated in the labor contract, such enterprises shall:

- Collect UI, HI, SI premiums according to the monthly salary as the basis for payment for HI, SI and UI (in VND, not in the salary ratio) that is at least equal to the minimum region-based salary.

- Adjust the premiums of UI, SI and HI and the amount of the employee’s benefits from the SI in accordance with the Law on Social Insurance dated 2014 and other instruction documents after approving the pay scale, payroll schedules, negotiable salary, allowances and other extras.

2. Settlement of SI coverage

Pursuant to the Law on Social Insurance dated 2014, Resolution No. 93/2015/QH13 dated June 22, 2015 of the National Assembly of Vietnam, Decree No. 115/2015/ND-CP dated November 11, 2015 of the Government detailing a number of articles of the Law on Social Insurance in respect of the compulsory social insurance, Decree No. 134/2015/ND dated December 29, 2015 of the Government detailing a number of articles of the Law on Social Insurance in respect of the voluntary social insurance and instruction documents issued by the Ministry of Labor, War Invalids and Social Affairs .

For those specified in Section 1 hereof, the monthly salary for which SI is paid from January 01, 2016 shall be decided by their employers.

The coverage for occupational accidents and occupational diseases: From 01/01/2016 to 04/30/2016 (the Law on Occupational Safety takes effect from July 01, 2016), occupational accidents and diseases shall be covered in accordance with the Law on Social insurance 2014 and other documents detailing and guiding the implementation of settlement of occupational accidents and diseases issued by 01/01/2016. For procedures for re-examination of the decrease in working capacity after suffering from diseases/relapses: Under point 5, Article 18 and 23 of the Law on Social Insurance, the application for re-examination of the decrease in the working capacity after the diseases/relapses shall be conformable with the Circular No. 07/2010/TT-BYT guiding the examination of the decrease in working capacity of employees having compulsory social insurance dated April 05, 2010 of the Ministry of Health and shall exclude the reference letter of the social insurance authority.

3. Implementation organizations:

a) Social security authorities of provinces and centrally-affiliated cities; social security authorities of the Ministry of National Defense and People’s Public Security of Vietnam shall:

- Announce and provide payees with instructions on establishment of pay scales, payroll schedules, labor norms, salary ranks, examination, supplementation and adjustment to labor contracts, collective bargaining agreement s as the basis for payment of salaries and HI, SI UI under applicable laws

- Cooperate with labor management authorities and relevant authorities of local governments, Ministries and regulatory bodies to inspect, examine and deal with violations against legislation on employments, salaries, HI, UI and SI and to protect the labor’s rights.

b) The Vietnam Social Security shall:

- Request the information technology center to innovate and upgrade insurance software for management of premium collection and coverage under applicable laws

- Request the Social security authorities of provinces; social security authorities of the Ministry of National Defense and People’s Public Security of Vietnam to comply with the foresaid provisions. Any arising issues should be promptly reported to the Vietnam Social Security./.