Hanoi-Vietnam: Legislative documents on Insurance - Salary - Banking

1. Guidelines for settlement of social insurance benefits from July 1, 2017

According to the guidelines in Official Dispatch 2696/BHXH-CSXH (dated June 29, 2017), from July 1, 2017, employees will begin to receive social insurance benefits based on the new statutory pay rate of 1.3 million VND/month.

This includes sickness, maternity, convalescence, and health recovery benefits, occupational accident and disease benefits, retirement, and survivor benefits.

Note the following cases:

- Employees who are receiving sickness, maternity, or convalescence and health recovery benefits before July 1, 2017, but continue to be eligible after that date, will continue to receive benefits at the rate applicable before July 1, 2017.

- Employees with at least 20 years of compulsory social insurance contributions who begin to receive retirement pensions from July 1, 2017, will have their monthly pension topped up to 1.3 million VND if the calculated amount is lower.

Additionally, Official Dispatch 2696 stipulates policies on monthly allowances for commune-level officials.

2. Guidelines for individuals to prepare and submit electronic documents for participating in social insurance and health insurance

Vietnam Social Security issued Decision 838/QD-BHXH with the procedures for electronic transactions in social insurance, health insurance, and unemployment insurance, which replaces the procedures in Decision 528/QD-BHXH dated April 14, 2015.

From July 1, 2017, individuals shall prepare and submit electronic documents as follows:

- Declare the Participation and Information Adjustment Form for Social Insurance, Health Insurance (Form No. TK1-TS), and the Information Sheet (Form No. D01-TS) using the declaration software of Vietnam Social Security or an I-VAN organization.

- Electronically sign the form and send it to the Vietnam Social Security e-portal or via an I-VAN organization.

- Receive a notification confirming the submission of electronic documents (Form No. 02/TB-GDDT); a notification of the resolution of electronic transaction documents and result return (Form No. 03/TB-GDDT) at the registered email address.

- Receive the resulting documents from the social insurance agency.

3. Increase in pension and social insurance benefits for 8 subjects

Decree 76/2017/ND-CP issued by the Government of Vietnam on June 30, 2017, concerning the adjustment of retirement pensions, social insurance allowances, and monthly benefits.

From July 1, 2017, there will be a 7.44% increase in the retirement pensions, social insurance allowances, and monthly benefits of June 2017 for 8 groups specified in Article 1 of Decree 76. Examples include:

- Officials, civil servants, workers, public employees, and employees; soldiers, public security forces, and individuals working in cryptographic operations receiving monthly retirement pensions.

-  Commune-level officials as defined in Decree 92/2009/ND-CP, Decree 121/2003/ND-CP, Decree 09/1998/ND-CP.- Soldiers, public security forces, and individuals working in cryptographic operations receiving allowances as soldiers, public security forces, receiving monthly benefits according to Decision 62/2011/QD-TTg dated November 9, 2011.

- Individuals receiving monthly compensation for occupational accidents and diseases.

Details can be found in Decree 76/2017/ND-CP, effective from August 15, 2017.

4. State Bank of Vietnam reduces loan interest rates

On July 7, 2017, the State Bank of Vietnam issued Decision 1424/QD-NHNN and Decision 1425/QD-NHNN, setting new interest rates for specific types of loans as follows:

- Refinancing interest rate: 6.25% per annum (previously 6.5% per annum).- Rediscount rate: 4.25% per annum (previously 4.5% per annum).

- Overnight loan interest rate in inter-bank electronic payments and deficit settlements by the State Bank of Vietnam: 7.25% per annum (previously 7.5% per annum).

- Maximum short-term lending rate in VND for capital demands in agriculture, rural areas, exports, and industry: 6.5% per annum (previously 7.0% per annum).- Maximum short-term lending rate in VND for credit unions and microfinance organizations: 7.5% per annum (previously 8.0% per annum).

Decision 1424/QD-NHNN and Decision 1425/QD-NHNN take effect from July 10, 2017.

Particularly in the past week, Lawnet has updated the full text of 12 New Laws that will officially take effect from 2018, including:

- Law No. 12/2017/QH14 amending and supplementing the Criminal Code 2015;

- Law on Supporting Small and Medium Enterprises 2017;

- Law on Foreign Trade Management 2017;

- Law on Tourism 2017;

- Law on Legal Aid;

- Law on Management and Use of Public Property 2017;

- Law on Railway 2017;- Law on Irrigation 2017;

- Law on State Compensation Liability;- Law on Technology Transfer 2017;

- Law on management and use of weapons, explosives and combat gears 2017;

- Law on Civil Defense.

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