CIRCULAR

SPECIFYING THE LEVELS OF ADJUSTMENT OF MONTHLY WAGES, REMUNERATION AND INCOMES FOR WHICH SOCIAL INSURANCE PREMIUMS HAVE BEEN PAID

THE MINISTRY OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS

Pursuant to the Government's Decree No. 83/2008/ND-CP of July 31, 2008, adjusting wages and remuneration for which social insurance premiums have been paid for laborers subject to the wage scheme decided by employers (below referred to as Decree No. 83/2008/ND-CP;
Pursuant to the Governments Decree No. 134/2008/ND-CP of December 31, 2008, adjusting monthly incomes for which social insurance premiums have been paid for laborers paying voluntary social insurance premiums (below referred to as Decree No. 134/2008/ND-CP),
After reaching agreement with the Ministry of Finance, the Ministry of Labor, War Invalids and Social Affairs specifies the levels of adjustment of wages and remuneration for which social insurance premiums have been paid for laborers subject to the wage scheme decided by employers and of monthly incomes for which social insurance premiums have been paid for laborers paying voluntary social insurance premiums as follows:

Article 1. Subjects of application

1. Subject to adjustment of wages and remuneration for which social insurance premiums have been paid under Article 2 of Decree No. 83/2008/ND-CP are laborers who currently pay social insurance premiums or have a period of social insurance premium payment reserved, have a period of paying social insurance premiums under the wage scheme decided by employers, receive pensions or lump-sum allowances when they retire, receive lump-sum social insurance allowances, or die and whose relatives receive lump-sum survivorship allowances, between January 1, 2010, and December 31, 2010.

2. Subject to adjustment of monthly incomes for which social insurance premiums have been paid under Article 2 of Decree No. 134/2008/ ND-CP are laborers who pay voluntary social insurance premiums and receive pensions or lump-sum allowances when they retire, receive lump-sum social insurance allowances, or die and whose relatives receive lump-sum survivorship allowances, between January 1, 2010, and December 31, 2010.

Article 2. Adjustment of monthly wages and remuneration for which social insurance premiums have been paid

...

...

...

Monthly wage and remuneration for which social insurance premiums are adjusted each year

=

Total monthly wage and remuneration for which social insurance premiums are paid each year under the wage scheme decided by employers

x

Level of adjustment of wage and remuneration for which social insurance premiums have been paid in the corresponding year

Of which the level of adjustment of wage and remuneration for which social insurance premiums have been paid in the corresponding year is specified in Table 1 below:

Table 1:

Year t

Before 1995

...

...

...

1996

1997

1998

1999

2000

2001

2002

Level of adjustment

2.72

...

...

...

2.18

2.11

1.96

1.88

1.91

1.91

1.84

Year t

2003

...

...

...

2005

2006

2007

2008

2009

2010

Level of adjustment

1.78

...

...

...

1.53

1.42

1.31

1.07

1

1

2. For laborers who have both a period of paying social insurance premiums under the State-prescribed wage scheme and a period of paying social insurance premiums under the wage scheme decided by employers, their monthly wages and remuneration for which social insurance premiums have been paid under the wage scheme decided by employers shall be adjusted under Clause 1 of this Article. The average monthly wage and remuneration for which social insurance premiums have been paid for use as a basis for calculating pensions and lump-sum allowances when laborers retire or lump-sum social insurance allowances and survivorship allowances shall be calculated under Article 31 of the Government's Decree No. 152/2006/ND-CP of December 22, 2006, guiding a number of articles of the Social Insurance Law regarding compulsory social insurance, and Article 34 of the Government's Decree No. 68/2007/ND-CP of April 19, 2007, detailing and guiding a number of articles of the Social Insurance Law regarding compulsory social insurance for army men, people's policemen and cipher officers who receive wages like army men and people's policemen.

Article 3. Adjustment of monthly incomes for which social insurance premiums have been paid

...

...

...

Monthly income for which voluntary Social insurance premiums are adjusted each year

=

Total monthly income for which social    insurance premiums are paid each year

x

Level of adjustment of monthly income for which social insurance premiums have been paid in the corresponding year

Of which the level of adjustment of monthly income for which social insurance premiums have been paid in the corresponding year is specified in Table 2 below:

Table 2:

Year t

2008

...

...

...

2010

Level of adjustment

1.07

1

1

2. For laborers who have both a period of paying compulsory social insurance premiums and a period of paying voluntary social insurance premiums, their monthly incomes for which voluntary social insurance premiums have been paid shall be adjusted under Clause 1 of this Article. If they have a period of paying social insurance premiums under the wage scheme decided by employers, their monthly wages and remuneration for which social insurance premiums have been paid under the wage scheme decided by employers shall be adjusted under Clause 1, Article 2 of this Circular. The average monthly incomes for which voluntary social insurance premiums have been paid or the average monthly wages, remuneration and incomes for which social insurance premiums have been paid as a basis for calculating pensions and lump-sum allowances when laborers retire or lump-sum social insurance allowances and survivorship allowances shall be calculated under Articles 16 and 17 of the Government's Decree No. 190/2007/ND-CP of December 28, 2007, guiding a number of articles of the Social Insurance Law regarding voluntary social insurance.

Article 4. Implementation provisions

1. This Circular takes effect 45 days from the date of its signing and applies from January 1, 2010.

2. Any problems arising in the course of implementation should be reported to the Ministry of Labor, War Invalids and Social Affairs for timely study and settlement.-

...

...

...

FOR THE MINISTER OF
LABOR; WAR INVALIDS AND SOCIAL AFFAIRS
DEPUTY MINISTER




Pham Minh Huan