Hanoi-Vietnam: Guidelines for settlement of social insurance benefits from July 1, 2017

On June 29, 2017, Vietnam Social Security issued Official Dispatch 2696/BHXH-CSXH providing guidance on settlement of social insurance benefits under the new statutory pay rate.

From July 1, 2017, the new statutory pay rate will be increased from VND 1,210,000 to VND 1,300,000. The benefit levels of social insurance such as sickness, maternity, occupational accident or disease, retirement, survivorship benefits, and allowances for commune-level officials will also be adjusted upward accordingly.

Official Dispatch 2696/BHXH-CSXH guides the settlement of social insurance benefits in Vietnam from July 1, 2017, as follows:

No. Benefit Guidance
1 Sickness, maternity, convalescence, and health recuperation

- Employees under the State salary policy system who begin receiving sickness or maternity benefits or convalescence and health recuperation allowances from July 1, 2017 onward will have the benefit amounts calculated based on the statutory pay rate of VND 1.3 million/month.

- Employees currently receiving sickness or maternity benefits or convalescence and health recuperation allowances before July 1, 2017, and continuing to receive them from July 1, 2017, onward will continue to receive benefits at the rate before July 1, 2017.

2 Occupational accident or disease

- Employees beginning to receive allowances from July 1, 2017, will have the allowance amounts calculated based on the statutory pay rate of VND 1.3 million/month.

- Employees with labor capacity reduction ≥ 81% and are paralyzed, blind in both eyes, amputated or paralyzed in two limbs, or suffer from mental illness, receiving work accident or occupational disease allowances from July 1, 2017, will have the monthly service allowance calculated based on the statutory pay rate of VND 1.3 million/month.

3 Retirement

- Employees under the State salary policy system receiving pensions from July 1, 2017, onward will have the benefit amounts calculated based on the statutory pay rate of VND 1.3 million/month.

- Employees retiring with pension eligibility or receiving lump-sum social insurance payout from July 1, 2017, and having social insurance premium payment before January 1, 2007 (including region-based allowances), will receive lump-sum region-based allowance calculated based on the statutory pay rate of VND 1.3 million/month.

- Employees under the State salary policy system participating in compulsory social insurance from January 1, 2016, onward receiving lump-sum social insurance payout, the salary used to calculate the average monthly salary for social insurance contribution will be adjusted according to Clause 2, Article 63 of the Social Insurance Law; not adjusted according to the statutory pay rate at the time of receiving lump-sum social insurance payout.

- Employees with at least 20 years of compulsory social insurance premium payment begin receiving pensions from July 1, 2017, onward, if the monthly pension calculated is less than VND 1.3 million, will be supplemented to VND 1.3 million.

4 Survivorship

- Funeral expenses, lump-sum allowance due to work accident, occupational disease, and lump-sum region-based allowance (if any) will be calculated based on the statutory pay rate of the month the employee dies. If death occurs from July 1, 2017, the allowance will be calculated based on the statutory pay rate of VND 1.3 million/month.

- Monthly survivorship allowance will be calculated based on the statutory pay rate at the time of receiving the allowance. Relatives beginning to receive monthly survivorship allowances from July 1, 2017, will have the allowance calculated based on the statutory pay rate of VND 1.3 million/month.

- Employees under the State salary policy system who are paying or reserving the period of social insurance premium payment and die, the lump-sum survivorship allowance will be calculated based on the statutory pay rate of the month the employee dies.

- Employees under the State salary policy system participating in compulsory social insurance from January 1, 2016, onward and employees under the employer-determined salary policy system who die, the salary used to calculate the average monthly salary for social insurance contribution to calculate the lump-sum survivorship allowance will be adjusted according to Clause 2, Article 63 of the Social Insurance Law.

5 Monthly allowance for commune-level officials

- Commune-level officials awaiting eligibility for monthly allowances under Decree 09/1998/ND-CP and Clause 1, Article 38 of Circular 59/2015/TT-BLDTBXH receiving monthly allowances from July 1, 2017, will have their monthly allowances calculated as of January 1, 2003, and adjusted through specific periods according to Point a, Clause 5, Section II of Official Dispatch 3320/BHXH-CSXH dated August 24, 2016; from July 1, 2017, increased by 7.44%.

- Individuals with social insurance participation time under Decree 121/2003/ND-CP; commune-level specialized officials continuing voluntary social insurance premium payment, and commune-level specialized officials under Decree 92/2009/ND-CP, receiving pensions or lump-sum social insurance payout from July 1, 2017, the average monthly salary for social insurance premium payment used to calculate pensions, lump-sum allowances upon retirement, or lump-sum social insurance payout will be calculated based on the statutory pay rate of VND 1.3 million.

- The months of social insurance premium payment calculated based on the living expense level under Decree 09/1998/ND-CP will be adjusted according to the corresponding increase of the general minimum wage before July 1, 2013; from July 1, 2013, according to the increase of the statutory pay rate each period.

6 Allowance for employees beyond working age - For individuals eligible for allowances under Decision 91/2000/QD-TTg and Decision 613/QD-TTg dated May 6, 2010, and begin receiving allowances from July 1, 2017, onward until the Government of Vietnam issues new regulations on adjustment of benefit levels, the monthly allowance will be VND 849,219/month.

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