How Is the Investment Income from the Social Insurance Fund Utilized?

According to Decree 30/2016/ND-CP, the entire annual profits from the investment activities of social insurance, health insurance, and unemployment insurance funds are to be used as follows:

- Establish a risk provision fund for investment activities from social insurance, health insurance, and unemployment insurance funds according to the following principles:- The annual deduction for the risk provision fund shall not exceed 2% of the investment profits until the balance of the risk provision fund equals 5% of the outstanding investment debts;- The risk provision fund is used to offset the investment losses handled according to the regulations in Article 13 of Decree 30/2016/ND-CP;- The risk provision fund, when not in use, shall be invested in the forms specified in Points a and b, Clause 1, Article 4 of Decree 30/2016/ND-CP.- The remaining portion will be allocated to the funds based on the average balance ratio of each fund to the total average balance of the funds during the year and used as follows:

- The investment profits allocated to the social insurance fund, after deducting the social insurance management costs as prescribed by law, will be supplemented to the component funds based on the average balance ratio of each component fund to the total average balance of the component funds during the year;- The investment profits allocated to the health insurance fund will be supplemented to the reserve fund for overall regulation;- The investment profits allocated to the unemployment insurance fund will be supplemented to the unemployment insurance fund.

See the related regulations at Decree 30/2016/ND-CP effective from June 16, 2016.

- Thanh Lam -

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