Circular No. 23/2016/TT-BLDTBXH dated July 15, 2016 of the Ministry of Labor, War Invalid and Social Affair guiding the adjustment of pensions, social insurance allowances and monthly allowances according to the Decree No. 55/2016/ND-CP dated June 15, 2016 of the Government

THE MINISTRY OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS

Circular No. 23/2016/TT-BLDTBXH dated July 15, 2016 of the Ministry of Labor, War Invalid and Social Affair guiding the adjustment of pensions, social insurance allowances and monthly allowances according to the Decree No. 55/2016/ND-CP dated June 15, 2016 of the Government

Pursuant to the Decree No. 106/2012/ND-CP of December 20, 2012, defining the functions, tasks, powers and organizational structure of the Ministry of Labor, War Invalids and Social Affairs;

Pursuant to the Decree No. 55/2016/ND-CP dated June 15, 2016 of the Government on the adjustment of pensions, disability allowances, monthly allowances and allowances for nursery teachers who have worked since before 1995;

At the proposal of the Director of Social Insurance Department;

The Minister of Labor, War Invalids and Social Affairs promulgates the Circular guiding the adjustment of pensions, social insurance allowances and monthly allowances according to the Decree No. 55/2016/ND-CP dated June 15, 2016 of the Government;

Article 1. Scope of application

1. Subjects as stipulated under Point a, Point b Clause 1 Article 2 of the Decree No. 55/2016/ND-CP dated June 15, 2016 of the Government start enjoying pensions, monthly allowances from January 01, 2015 to the day before May 01, 2016.

2. Subjects as stipulated under Point a, Point b and Point c Clause 1 Article 2 of the Decree No. 55/2016/ND-CP dated June 15, 2016 of the Government are enjoying pensions, disability allowances and monthly allowances before January 01, 2016 and subjects start enjoying pensions, monthly allowances in the period of among January 01, 2016 till December 31, 2016 who pensions, allowances are under 2 million/ month.

2. Nursery teachers working in nursery schools before January 01, 2016 whose pensions are lower than base wage rate.

Article 2. Adjustment on enjoyment rate for people starting to enjoy pensions, monthly allowances from January 01, 2015 to May 01, 2016

1. To increase by 8% of pensions, monthly allowances for subjects as stipulated under Clause 1 Article 1 of this Circular. Specifically:

New pensions, monthly allowances = Current pensions, monthly allowances * 1.08

2. Time for adjustment shall be from the month starting to enjoy pensions, monthly allowances.

Example 1. Mr. A, starting to enjoy pensions from January 01, 2015 with the rate at the time of January 2015 is 5.200.000 VND/month.

His new pension rate after adjustment is:

5.200.000 VND/month * 1.08 = 5.616.000 VND/month.

Time to enjoy new pension rate of Mr. A shall be calculated from January 2015.

Example 2. Ms B, starting to enjoy pensions from March 01, 2016 with the pension rate at the time of March 2016 is 4.800.000 VND/month.

Her new pension rate after adjustment is:

4.800.000 VND/month * 1.08 = 5.184.000 VND

Time to enjoy new pension rate of Ms B shall be calculated from March 2016.

Article 3. Adjustment of enjoyment rate for subjects whose pensions, allowances are under 2 mil /month

1. Subjects as stipulated under Clause 2 Article 1 of this Circular, including subjects after being adjusted as stipulated under Article 2 of this Circular, if pensions, allowances are under 2 mil/month, enjoyment rate will be as follows:

a) For people enjoying pension from 1,750,000 VND/month or under:

Pension after adjustment = Pension before adjustment + 250,000 VND/month

b) For people enjoying pension from 1,750,000 VND/month to under 2,000,000 VND/month

Pension after adjustment = 2,000,000 VND/month

c) For people enjoying disability allowances, monthly allowances from 1,850,000 VND/month or under

Disability allowances, monthly allowances after adjustment = Disability allowances, monthly allowances before adjustment + 150,000 VND/month

d) For people enjoying disability allowances, monthly allowances from 1,850,000 VND/month to under 2,000,000 VND/month:

Disability allowances, monthly allowances after adjustment = 2,000,000 VND/month

2. Time for adjustment shall be from January 2016 for people enjoying pensions, disability allowances, and monthly allowances before January 01, 2016 and shall be calculated from the first month to enjoy pensions, monthly allowances for people enjoying from January 01, 2016 to December 31, 2016.

Example 3: Mr C starts enjoying pensions from January 01, 2016 with pension at the time of January 01, 2016 is 1,600,000 VND/month.

- Mr C is under the subject of increasing 8% as stipulated under Article 2 of this Circular, his pension after adjustment is:

1,600,000 VND/month * 1.08 = 1,728,000 VND/month

- Because his pension is lower than 1,750,000 VND/month, Mr. C is under the subject of increasing by 250,000 VND/month as stipulated under Point a Clause 1 Article 3 of this Circular. The pension rate of Mr. C after adjustment is:

1,728,000 VND/month + 250,000 VND/month = 1,978,000 VND/month

Time to enjoy pensions as mentioned above shall be from January 2016.

Example 4: Ms D enjoying disability allowances at the time of December 2015 is 1,860,000 VND/month. Because her allowance is between 1,850,000 VND/month and 2,000,000 VND/month, Ms D is under the subject of adjustment as stipulated under Point d Clause 1 Article 3 of this Circular.

Her disability allowance after adjustment is 2,000,000 VND/month. Time to enjoy shall be from January 2016.

Article 4. Adjustment of enjoyment rate for nursery teachers whose pensions are lower than basic wage rate

1. Nursery teachers being under subjects as stipulated under Clause 3 Article 1 of this Circular that work in nursery schools before January 01, 2015 and enjoy pension before January 01, 2916 or start enjoying pensions from January 01, 2016 to December 31, 2016, if pension rate after adjustment as stipulated under Article 2 and Article 3 of this Circular is lower than 1,150,000 VND, it shall be adjusted to 1,150,000 VND for the period from January 01, 2016 to April 30, 2016; if it is lower than 1,210,000 VND/month, it shall be adjusted to 1,210,000 VND/month for the period from May 01, 2016.

2. Time for adjustment

a) From January 01, 2016 for subjects that enjoy pensions before January 91, 2016 and from May 01, 2016 for subjects that enjoy pension before May 01, 2016.

b) From the month enjoying pension for people who start enjoying pension in the period of from January 01, 2016 to December 13, 2016.

Example 5: Ms E is a nursery teacher and she worked at nursery school before January 01, 1995 and starts enjoying pension from March 01, 2015 with the pension rate on March 2015 of 800,000 VND/month.

- Ms E is under the subject of adjustment increasing 8% as stipulated under Article 2 of this Circular, pension rate of Ms E after being adjusted by 8% is:

800,000 VND/month * 1.08= 864.000 VND/month

- Because Ms E’s pension is lower than 1,750,000 VND/month, Ms E is under the subject of adjustment by increasing 250,000 VND/month as stipulated under Point a Clause 1 Article 3 of this Circular. Ms E’s pension after being adjusted is:

864,000 VND/month + 250,000 VND/month = 1,114,000 VND/month

- Because Ms E’s pension at the time of January 01, 2016 is lower than 1,150,000 VND/month, Ms E is under the subject of adjustment to increase to 1,150,000 VND/month; At the time of May 01, 2016, it is lower than 1,210,000 VND/month, Ms E is under the subject of adjustment by increasing to 1,210,000 VND/month as stipulated under Clause 1 Article 4 of this Circular.

Therefore, Ms E enjoys pension in each period as follows:

+ From March 2015 to December 2015: 864,000 VND/month.

+ From January 2016 to the end of April 2016: 1,500,000 VND/month.

+ From May 2016 to the end of December 2016: 1,210,000 VND/month.

Article 5. Implementation organization

1. People Committee of provinces and cities under central management shall direct the Department of Labor, War Invalids and Social Affairs and other competent agencies to inspect and examine the implementation of regulations under this Circular.

2. Vietnam Social Insurance shall implement on the adjustment of pensions, disability allowances, and monthly allowances as stipulated under the Decree No.55/2016/ND-CP and guidelines under this Circular, draw up a report according to the Form attached together with this Circular and send it to the Ministry of Labor, War Invalids and Social Affairs before January 15, 2017.

Article 6. Effect

This Circular takes effect on September 01, 2016.

In the course of implementation, any arising problems should be reported to the Ministry of Labor, War Invalids and Social Affairs for research and settlement.

For The Minister

Deputy Minister

Pham Minh Huan