THE MINISTRY OF LABOUR, INVALIDS AND SOCIAL AFFAIRS
———-

SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
—————-

No.: 13/2011/TT-BLDTBXH

Hanoi, April 27, 2011

CIRCULAR

GUIDING ADJUSTMENT OF PENSION, SOCIAL INSURANCE ALLOWANCE AND MONTHLY ALLOWANCE BY DECREE NO.23/2011/ND-CP DATED APRIL 04, 2011 AND DECREE NO.22/2011/ND-CP DATED APRIL 04, 2011 OF THE GOVERNMENT

Pursuant to the Decree No.186/2007/ND-CP dated December 25, 2007 defining the functions, tasks, powers and organizational structure of the Ministry of Labor, Invalids and Social Affairs;
Pursuant to the Decree No.23/2011/ND-CP dated April 04, 2011 of the Government on adjusting pensions, social insurance allowance and monthly allowance for commune officials who retired (hereinafter referred to as Decree No.23/2011/ND-CP);
Pursuant to the Decree No.22/2011/ND-CP dated April 04, 2011 of the Government on common minimum wage level (hereinafter referred to as Decree No.22/2011/ND-CP);
The Ministry Of Labour, Invalids And Social Affairs guides adjustment of pension, social insurance allowance and monthly allowance as follows:
Article 1. Subjects of application
1. Officials, public servants, workers, public employees and employees (including retirees enjoyed monthly allowance transferred from social insurance funds of Nghe An farmers as stipulated in Decision No.41/2009/QD-TTg dated March 16, 2009 of the Prime Minister); military and people’s public security officers, those who engage primary tasks in being enjoyed the pension before May 01, 2011.
2. Officials of Communes, wards or townships provided for in Decree No.92/2009/ND-CP dated October 22, 2009, Decree No.121/2003/ND-CP of October 21, 2003 and Decree No.09/1998/ND-CP dated January 23, 1998 of the Government being enjoyed pensions, monthly allowances before May 01, 2011.
3. Those who are enjoying labor incapacitation monthly allowances; people who are being enjoyed monthly allowances under Decision No.91/2000/QD-TTg August 04, 2000, Decision No.613/QD-TTg dated May 06, 2010 of the Prime Minister and rubber workers who are being enjoyed monthly allowances before May 01, 2011.
4. Those who are enjoying monthly allowances of occupational accidents and occupational diseases before May 01, 2011.
5. Those who are enjoying monthly death grant before May 01, 2011.
6. Those who are enjoying allowances of sickness, maternity before May 01, 2011 to be subject to the wage regime prescribed by the State and from May 01, 2011 onwards, they are still enjoyed allowance as prescribed.
Article 2. Adjustment of pensions and social insurance allowances and monthly allowances
1. Persons specified in Clauses 1, 2 and 3 of Article 1 of this Circular who are being enjoyed pensions, monthly allowances, pensions level and monthly allowances are adjusted as follows:

Example 1: Mr. A, with his pension level in 4/2011 is 1,938,027 VND/month.
Mr.A’s pension level from 5/2011 is adjusted as follows:
1,938,027 VND/month x 1.137 = 2,203,537 VND/month
Example 2: Mr. B, rank of Captain, with his pension level in 4/2011 is 2,544,983 VND/month.
Mr. B’s pension level from 5/2011 is adjusted as follows:
2,544,983 VND/month x 1.137 = 2,893,646 VND/month
Example 3: Mr. C is a retired commune official, enjoyed monthly allowance as prescribed in Decree No.09/1998/ND-CP with allowance level in 4/2011 is 947,046 VND/month.
Mr.C’s monthly allowance level for from 5/2011 is adjusted as follows:
947,046 VND/month x 1.137 = 1,076,791 VND/month
Example 4: Mr. D, left his job enjoyed monthly allowance for labor incapacitation, with allowance level in 4/2011 is 1,028,407 VND/month.
The allowance for Mr.D’s labor incapacitation in 5/2011 is adjusted as follows:
1,028,407 VND/month x 1.137 = 1,169,299 VND/month
2. Persons specified in clause 4 of Article 1 of this Circular, the allowance levels of occupational accidents and occupational diseases are adjusted monthly as follows:
a) For persons who are being enjoyed occupational accidents and occupational diseases:

Example 5: Mr. G, is being enjoyed monthly occupational accident allowance, with allowance level in 4/2011 is 436,671 VND/month.
The monthly allowance level for Mr.G’s occupational accident from 5/2011 is adjusted as follows:
436,671 VND/month x 1.137 = 496,495 VND/month
b) For people with occupational accident or occupational disease were completely treated and left hospital or the conclusion of the Council of Medical Examination (for the case of outpatient treatment) within the period from May 01, 2010 to April 30, 2011 that have not been solved their allowance regime of labor accidents and occupational diseases, it is still calculated by the common minimum wage level at the month of leaving the hospital or the conclusion of the Council of Medical Examination; from May 01, 2011, the allowance level of these persons are adjusted under the provisions of point a of this clause.
c) For people with occupational accidents and occupational diseases who are being enjoyed service allowance, from May 01, 2011, the monthly service allowance level is calculated according to the general minimum wage level as 830,000 VND/month.
3. For people enjoyed monthly death grant prescribed in clause 5 of Article 1 of this Circular, the allowance level is adjusted as follows:
a) Death grant level for connected person being enjoyed monthly death grant from May 01, 2011 is calculated at common minimum wage as 830,000 VND/month.
Example 6: Mr. H, are being enjoyed death grant for connected person without direct person to care for with a monthly allowance equal to 70% of the common minimum wage. From May 01, 2011 the monthly allowance level of Mr. H is:
70% x 830,000 VND/month = 581,000 VND/month.
b) For persons who died during the period from May 01, 2010 to April 30, 2011 that their connected persons have not been solved death grant regime, the monthly death grant level of the months before May 01, 2011 is calculated by the common minimum wage level as 730,000 VND/month. From May 01, 2011, the monthly death grant level of the above subjects is adjusted as prescribed at point a of this clause.
4. Persons specified in clause 6 of Article 1 of this Circular that from May 01, 2011 onwards, they are still enjoyed allowance, the allowance level of the remaining enjoyed time shall be calculated according to the common minimum wage as 830,000 VND/month.
5. The military and people’s public security officers who were transferred their sectors and retired due to labor incapacitation and have been enjoyed allowance of transferring sector under the provisions of Article 3 of Decision No.812/TTg December 12, 1995 of the Prime Minister, then from May 01, 2011 the allowances for transferring sector are calculated at the common minimum wage level as 830,000 VND/month.
6. Pensioners who live alone as stipulated in Article 2 of Decision No.812/TTg December 12, 1995 of the Prime Minister, if the pension level is adjusted under clause 1 of this Article less than 1,245,000 VND/month, then from May 01, 2011 it is adjusted by 1,245,000 VND/month.
Article 3. Organization of implementation
1. Ministry of Labour – Invalids and Social Affairs presides over and coordinates with the Ministry of Finance, Ministry of Defense, Public Security to inspect the implementation as stipulated in Decree No.23/2011/ND-CP and Decree No.22/2011/ND-CP and this Circular.
2. People’s Committees of provinces and cities directly under the Central Government shall direct the Departments of Labour – Invalids and Social Affairs and related function agencies to inspect and urge the implementation of the provisions of this Circular.
3. Vietnam Social Insurance is responsible for implementing the adjustment of pensions and social insurance allowances and monthly allowances as prescribed in Decree No.23/2011/ND-CP and Decree No.22/2011 / ND-CP and the guidance in this Circular; making reports in the form attached to this Circular and send to the Ministry of Labour – Invalids and Social Affairs and Ministry of Finance before June 15, 2011.
Article 4. Effect
This Circular takes effect 45 days from the date of signing; the regimes prescribed in this Circular shall be implemented as from May 01, 2011.
During the course of implementation if any problems arise, the concerned bodies should reflect to the Ministry of Labour – Invalids and Social Affairs for study and settlement./.
 

 
SUMMARY TABLE
OF NUMBER OF SUBJECTS ENJOYED SOCIAL INSURANCE AND TOTAL ADDITIONAL FUNDS
(Together with Circular No.13/2011/TT-BLDTBXH dated April 27, 2011 of Ministry of Labor – Invalids and Social Affairs)

The post Circular No. 13/2011/TT-BLDTBXH of April 27, 2011, guiding adjustment of pension, social insurance allowance and monthly allowance by Decree No.23/2011/ND-CP dated April 04, 2011 and decree no.22/2011/ND-CP dated April 04, 2011 of the government appeared first on MP Law Firm.

THE GOVERNMENT
——-

SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom – Happiness
———

No. 22/2011/ND-CP

Hanoi, April 04, 2011

DECREE

PROVIDING FOR THE COMMON MINIMUM WAGE

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the June 23, 1994 Labor Code; the April 2, 2002 Law Amending and Supplementing a Number of Articles of the Labor Code; the June 29, 2006 Law Amending and Supplementing a Number of Articles of the Labor Code; and the April 2, 2007 Law Amending and Supplementing Article 73 of the Labor Code;
Pursuant to the National Assembly’s Resolution No. 52/2010/QH12 of November 10, 2010, on the 2011 state budget estimates;
At the proposal of the Minister of Labor, War Invalids and Social Affairs, the Minister of Home Affairs and the Minister of Finance,

DECREES:

Article 1. To provide for the common minimum wage of VND 830,000/month, to be applied from May 1, 2011.
Article 2. The common minimum wage provided for in this Decree applies to cadres, civil servants, public employees, armed forces servicemen and employees of agencies, units and organizations:
1. State agencies, armed forces, political organizations and socio-political organizations.
2. Non-business units of the State; non-business units of political organizations and socio-political organizations.
3. State-owned one-member limited liability companies which are organized and managed and operate under the Enterprise Law.
Article 3. The common minimum wage provided for in this Decree is used as a basis for:
1. Calculating wage levels in the system of wage scales, wage payrolls and wage-based allowance levels, and implementing a number of other regimes established by law towards cadres, civil servants, public employees, armed forces servicemen and employees of agencies, units and organizations specified in Article 2 of this Decree.
2. Calculating allowances, from May 1, 2011, onward, for redundant laborers under the Government’s Decree No. 91/2010/ND-CP of August 20, 2010, providing for the policy for redundant laborers upon reorganizing state-owned one-member liability limited companies.
3. Calculating wage deductions and entitlements of wage earners based on the common minimum wage.
Article 4. The state budget shall assure funds for applying the common minimum wage provided for in this Decree from the following sources:
1. Saving of 10% of the regular expenditure (except wage and amounts of wage nature) in accordance with the estimates assigned in 2011 by authorities to administrative agencies and non-business units.
2. Use of at least 40% of revenues permitted to be retained in 2011 at revenue-generating administrative agencies and non-business units under regulations. Use of at least 35% of revenues permitted to be retained at non-business units of the health sector under regulations (after deducting expenses for medicines, blood, infusion fluid, chemicals, consumed supplies and substitute supplies).
3. Use of 50% of increased revenues in comparison with the 2010 estimates of local budgets.
4. The state budget funds for the wage reform that remain unused by the end of 2010 of administrative agencies, non-business units and local budgets at all levels.
5. The central budget shall assure:
a/ Additional funds for ministries, central agencies, provinces and centrally run cities, which have complied with Clauses 1 thru 4 of this Article, but still need funds for paying wages based on the common minimum wage.
b/ Supports for difficulty-hit localities which cannot acquire sources to pay wages at the average level of two-thirds of the common minimum wage for part-time cadres of communes, wards, townships, villages and street quarters as identified in the Government’s Decree No.92/2009/ND-CP of October 22, 2009.
Article 5. Funds for applying the common minimum wage to employees of companies specified in Clause 3 of Article 2 shall be provided by these companies and may be accounted into their product costs or production or business expenses.
Article 6. Implementation guidance responsibilities
1. The Ministry of Labor, War Invalids and Social Affairs shall, after consulting the Vietnam General Confederation of Labor, representatives of employers and concerned ministries and sectors, guide the application of the common minimum wage to state-owned one-member limited liability companies; and guide the calculation of allowances specified in Clause 2, Article 3 of this Decree applicable to redundant laborers under the Government’s Decree No.91/2010/ND-CP of August 20, 2010.
2. The Ministry of Home Affairs shall assume the prime responsibility for, and coordinate with the Ministry of Finance and concerned ministries and sectors in, guiding the application of the common minimum wage to agencies, units and organizations specified in Clauses 1 and 2, Article 2 of this Decree.
3. After reaching agreement with the Ministry of Home Affairs and the Ministry of Finance, the Ministry of National Defense and the Ministry of Public Security shall guide the application of the common minimum wage to their personnel.
4. The Ministry of Finance shall assume the prime responsibility for, and coordinate with concerned ministries and sectors in:
a/ Guiding the estimation and balancing of funds for applying the common minimum wage under Article 4 of this Decree;
b/ Appraising and adding funds for ministries, central agencies, provinces and centrally run cities to apply the common minimum wage to cases specified at Point a, Clause 5, Article 4 of this Decree, ensuring targeted additional funds for difficulty-hit localities specified at Point b, Clause 5, Article 4 of this Decree, and reviewing the implementation for reporting to the Prime Minister.
Article 7. Effect
1. This Decree takes effect on May 19, 2011.
Entitlements provided for in this Decree apply from May 1, 2011.
2. To annul the Government’s Decree No. 28/2010/ND-CP of March 25, 2010, providing for the common minimum wage.
3. Companies and organizations specified in Clause 3, Article 6 of the Government’s Decree No.108/2010/ND-CP of October 29, 2010, may apply the common minimum wage provided for in this Decree to calculate the wage unit, and if satisfying the conditions specified in Article 4 of the Government’s Decree No. 206/2004/ND-CP of December 14, 2004, may apply a wage increase coefficient not exceeding 1.1 times the common minimum wage. If they satisfy the conditions specified in Article 4 of the Government’s Decree No. 206/2004/ND-CP and have a planned profit at least 5% higher than the profit realized in the preceding year, they may apply a wage increase coefficient not exceeding 1.7 times the common minimum wage.
Article 8. Ministers, heads of ministerial-level agencies and government- attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decree.-
 

The post Decree No. 22/2011/ND-CP of April 04, 2011, providing for the common minimum wage appeared first on MP Law Firm.