Instructions for adjusting monthly salary and income for which social insurance has been paid

(Baonghean) - Pursuant to Decree No. 115/2015/ND-CP dated November 11, 2015; No. 134/2015/ND-CP dated December 29, 2015 of the Government and Circular No. 58/2015/TT-BLDTBXH dated December 29, 2015 of the Ministry of Labor, War Invalids and Social Affairs stipulating the adjustment level of salary and monthly income for which social insurance has been paid to serve as a basis for calculating pension, one-time pension upon retirement, one-time social insurance, one-time death benefit, Vietnam Social Security requests Social Security of provinces and centrally-run cities (hereinafter referred to as provincial Social Security), Social Security of the Ministry of National Defense, Social Security of the People's Public Security to implement as follows:

Applicable objects:

1.Subjects whose salaries have been paid for social insurance to be used as a basis for calculating social insurance benefits include: Employees who pay compulsory social insurance according to the salary regime decided by the employer (including those who continue to pay social insurance themselves according to regulations), participants of compulsory social insurance who are reserving their social insurance payment period (including employees waiting to reach the age to receive monthly pension benefits), participants of Nghe An farmers' social insurance who are converted to voluntary social insurance according to Decision No. 41/2009/QD-TTg dated March 16, 2009 of the Prime Minister. The above subjects have paid social insurance according to the salary regime decided by the employer or participated in Nghe An farmers' social insurance, received pensions, one-time pensions upon retirement, one-time social insurance or died and their relatives are entitled to one-time death benefits from January 1, 2016 to December 31, 2016.

2.Subjects of adjustment of monthly income for which social insurance has been paid are employees participating in voluntary social insurance (including those who are reserving their social insurance payment period) receiving pension, one-time pension upon retirement, one-time social insurance or death whose relatives are entitled to one-time death benefits from January 1, 2016 to December 31, 2016.

One-time social insurance benefits are calculated based on the number of years of social insurance contributions.

Adjusting monthly salary and income for which social insurance has been paid to serve as a basis for calculating social insurance benefits

1.Adjust the salary that has paid compulsory social insurance according to the salary regime decided by the employer for those who only have a period of participation in compulsory social insurance or have a period of participation in Nghe An farmers' social insurance.

Employees who retire and receive a one-time pension or social insurance benefit or die and their relatives are entitled to a one-time death benefit according to the provisions of the law on social insurance from January 1, 2016 to December 31, 2016, when calculating the average monthly salary for social insurance payment as the basis for calculating pension, one-time pension upon retirement, one-time social insurance, one-time death benefit, and have a period of social insurance payment according to the salary regime decided by the employer or have a period of participation in Nghe An farmers' social insurance, the adjustment formula and the adjustment level of the salary for which social insurance has been paid are prescribed in Clause 1, Article 2 of Circular No. 58/2015/TT-BLDTBXH to adjust the monthly salary for which social insurance has been paid during this period.

In case the period of social insurance payment has been recorded in the social insurance book in foreign currency, the monthly salary for social insurance payment in foreign currency will be converted into Vietnamese currency at the average exchange rate on the interbank foreign exchange market announced by the State Bank of Vietnam on January 2 for the first 6 months of the year, and on July 1 for the last 6 months of the year of social insurance payment recorded in the social insurance book. After converting into Vietnamese currency at the time of social insurance payment, the benefit level will be adjusted and recalculated (the exchange rate of Vietnamese Dong compared to the US dollar for the years from 1990 to January 2, 2007, Vietnam Social Insurance has compiled and announced in Official Dispatch No. 1633/BHXH-CĐCS dated May 16, 2007).

2.Adjust monthly income for voluntary social insurance contributions to serve as a basis for calculating social insurance benefits for those who only have a period of voluntary social insurance contributions.

Voluntary social insurance participants who receive one-time retirement or social insurance benefits or who die and whose relatives are entitled to one-time death benefits according to the provisions of the law on social insurance from January 1, 2016 to December 31, 2016, when calculating the average monthly income for which voluntary social insurance has been paid to calculate social insurance benefits, the adjustment formula and the adjustment level of monthly income for which social insurance has been paid as prescribed in Clause 1, Article 3 of Circular No. 58/2015/TT-BLDTBXH shall be used to adjust the monthly income for which social insurance has been paid during this period.

3.Adjusting monthly salary and income for which social insurance has been paid to serve as a basis for calculating social insurance benefits for those who have both a period of compulsory social insurance payment under the salary regime decided by the employer or participate in Nghe An farmers' social insurance and a period of voluntary social insurance payment.

For those who have both paid social insurance under the salary regime decided by the employer or participated in Nghe An Farmers' Social Insurance and have participated in voluntary social insurance, from January 1, 2016 to December 31, 2016, and enjoy retirement benefits, one-time social insurance, or die and their relatives are entitled to one-time death benefits according to the provisions of the law on social insurance, when calculating the average salary and monthly income paid for social insurance to calculate social insurance benefits, if there is a period of social insurance payment under the salary regime decided by the employer or according to the level of participation in Nghe An Farmers' Social Insurance, the salary paid for social insurance of this period shall be adjusted according to the instructions in Point 2.1 above; if there is a period of voluntary social insurance payment, the monthly income paid for social insurance of this period shall be adjusted according to the instructions in Point 2.2 above.

Consulting and guiding workers to find jobs and enjoy unemployment insurance. (Photo: VNA)

Implementing organization:

1.Provincial Social Insurance, Ministry of National Defense Social Insurance, People's Public Security Social Insurance and District, Town and City Social Insurance shall base on the salary and monthly income adjustment coefficients specified in Table 1 and Table 2 of Circular No. 58/2015/TT-BLDTBXH to resolve social insurance benefits according to regulations.

2.Information Technology Center: Based on the provisions of the policy and instructions in this document, develop a software program related to the adjustment of monthly salary and income for which social insurance has been paid as a basis for calculating social insurance benefits according to regulations; deploy and guide the implementation of the software program to the provincial social insurance, the Ministry of National Defense social insurance, and the People's Public Security social insurance.

3.Other units under Vietnam Social Security: According to the functions and tasks of the unit, perform related contents as prescribed in this document.

If there are any problems during the implementation process, please report them to Vietnam Social Security for guidance.

Thanh Hien

(Synthetic)