Guidelines for non-cash payment of social security policies in Vietnam

What are the general principles and guidelines for non-cash payment of social security policies in Vietnam? - Thu An (Can Tho, Vietnam)

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Guidelines for non-cash payment of social security policies in Vietnam (Internet image)

The Ministry of Labor, War Invalids and Social Affairs of Vietnam issued Official Dispatch 5234/LDTBXH-TTTT dated December 23, 2022 guiding non-cash payments to beneficiaries of social security policies.

Thus, the instructions for making non-cash payments to beneficiaries of social security policies are as follows:

1. General principles for non-cash payment of social security policies in Vietnam

- The implementation of non-cash payments to beneficiaries does not arise administrative procedures, does not change the handling process for work related to payment for social security beneficiaries.

- The selection of payment service providers and organizations shall be made by localities according to current regulations.

- The Department of Labour, Invalids, and Social Affairs assigned to pay shall open a payment account at a commercial bank to receive personal payments in accordance with the provisions of Circular 136/2018/TT-BTC.

- The process of controlling and paying through the State Treasury shall comply with the provisions of the following specific documents:

+ Decree 11/2020/ND-CP dated January 20, 2020 of the Government regulating administrative procedures in the field of State Treasury.

+ Circular 62/2020/TT-BTC dated June 22, 2020, of the Ministry of Finance guides the control and payment of recurring expenditures from the state budget through the State Treasury.

+ Circular 76/2021/TT-BTC dated September 15, 2021, of the Ministry of Finance guiding Clauses 1 and 2, Article 31 of Decree 20/2021/ND-CP.

+ Circular 44/2022/TT-BTC dated July 21, 2022, of the Ministry of Finance provides for the management and use of recurrent expenditures for the implementation of policies and preferential regimes for people with meritorious services to the revolution and their relatives. of people with meritorious services to the revolution and those who directly participated in the resistance war under the management of the Labor - Invalids, and Social Affairs sector.

+ Official Dispatch 6001/KBNN-KSC dated November 17, 2021 of the State Treasury on personal payment via account.

The guiding contents of this official dispatch have been included in the draft Circular replacing Circular 62/2020/TT-BTC dated June 22, 2020, of the Ministry of Finance (expected to be issued in January 2023).

2. Guidelines for non-cash payment of social security policies in Vietnam

- For the locality that is making direct payment to the subject (not yet through a payment service organization): Request the agency of Labor, Invalids, and Social Affairs assigned to pay to make a list of beneficiaries of social security policies who already have an account and make payments directly to the subject's account through the State Treasury.
and payment accounts of the entity at commercial banks.

For beneficiaries of social security policies who do not have an account, in the immediate future, the payment will be made as at present, and at the same time, the Labor, Invalids, and Social Affairs sector will coordinate with socio-political organizations in the area to propagate and mobilize for beneficiaries of social security policies to open accounts at commercial banks.

- For localities that make payments to beneficiaries of social security policies through payment service organizations:

(1) Localities that have 100% accounts: make payments directly to the subject's account through the State Treasury and the unit's payment account at commercial banks in accordance with regulations, or request the payment service organization to make payments to the subject through the account.

(2) Localities that do not have 100% of account holders can choose one of the following two options:

+ Option 1: requires payment service organizations to make payments through accounts for those who already have accounts.

For those who do not have an account, first make payments through the account of an authorized individual,
  at the same time, the Department of Labor, Invalids, and Social Affairs cooperates with socio-political organizations in the area to propagate and mobilize subjects to open accounts at commercial banks.

+ Option 2: The Department of Labor, Invalids, and Social Affairs shall make a list of subjects who already have accounts, make payments directly to the subjects' accounts through the State Treasury and the unit's payment accounts at commercial banks.

For those who do not have an account, the Labor, Invalids, and Social Affairs branch shall make a list and coordinate with the immediate payment service organization to make payments through the account of an authorized individual. At the same time, the Department of Labor, Invalids, and Social Affairs cooperates with socio-political organizations in the area to propagate and mobilize subjects to open accounts at commercial banks.

- Request the Chairman of the People's Committees of the provinces/cities directly under the Central Government to direct agencies and organizations to continue to pay attention to and take care of people with meritorious services and social security beneficiaries in the locality, not letting the non-cash payment affect the policies of the Party and State towards this group of subjects.

- Request the People's Committees of the provinces/cities directly under the Central Government to periodically report the results of non-cash payment for beneficiaries of social security policies to the Ministry of Labour, Invalids, and Social Affairs. During the implementation process, if any problems arise that need to be amended and supplemented, the People's committees of the provinces/cities directly under the Central Government are requested to report them to the Ministry for consideration and adjustment.

More details can be found in Official Dispatch 5234/LDTBXH-TTTT dated December 23, 2022.

Nguyen Nhu Mai

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