From May 30, 2020, How to Allocate the Budget Estimate for Pensions and Social Insurance Benefits?

at Clause 3, Article 1 of Circular 24/2020/TT-BTC amending Article 4 of Circular 20/2016/TT-BTC, stipulating that from May 30, 2020, the allocation of estimates and transfer of funds for pension payments and social insurance allowances from the state budget are implemented as follows:

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- Based on the state budget expenditure estimate assigned by the competent authority, Vietnam Social Security allocates detailed estimates according to the policies specified in Article 27 of Decree 115/2015/ND-CP dated November 11, 2015 of the Government of Vietnam, detailing some provisions of the Social Insurance Law on compulsory social insurance, and submits to the Ministry of Finance for appraisal according to the provisions of the State Budget Law;

- Before the 25th of each month, the Ministry of Finance transfers from the central budget a fund equal to the average monthly expenditure estimate authorized for the year (including payment costs) to the social insurance fund for Vietnam Social Security to disburse to the beneficiaries in the following month;

- After the annual settlement is approved, if the amount transferred by the Ministry of Finance to the social insurance fund is greater than the settled amount, Vietnam Social Security returns the excess difference to the central budget. In case the amount transferred by the Ministry of Finance to the social insurance fund is less than the settled amount, the Ministry of Finance proposes the competent authority to supplement the shortfall for Vietnam Social Security.

Additionally, regarding the allocation and assignment of unemployment insurance management costs, occupational accident and disease insurance costs: Within 15 working days from the date of receiving the estimate assignment decision from the Prime Minister of the Government of Vietnam, the Ministry of Labor - Invalids and Social Affairs completes the allocation and assignment of unemployment insurance management costs to the Department of Employment and Employment Service Centers under the Department of Labor - Invalids and Social Affairs; management costs for occupational accident and disease insurance to the Department of Occupational Safety and Departments of Labor - Invalids and Social Affairs.

More details can be found in: Circular 24/2020/TT-BTC effective from May 30, 2020.

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