Circular 24/2020/TT-BTC amending Circular 20/2016/TT-NHNN

CIRCULAR

On amending and supplementing a number of articles of the Circular No. 20/2016/TT-NHNN dated February 03, 2016 of the Ministry of Finance on providing guidance on the implementation of financial management mechanism on social insurance, health insurance, unemployment insurance and management expenses for social insurance, health insurance and unemployment insurance

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Pursuant to Law on Social Insurance dated November 20, 2014;

Pursuant to the Law on Employment dated November 16, 2013;

Pursuant to the Law on Occupational Safety and Health dated June 25, 2015;

Pursuant to the Law on Health Insurance dated November 14, 2008 and the Law on amending and supplementing a number of articles of the Health Insurance Law dated June 13, 2014;

Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017, on defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Prime Minister’s Decision No. 60/2015/QD-TTg dated November 27, 2015 on financial management mechanism on social insurance, health insurance, unemployment insurance and management expenses for social insurance, health insurance and unemployment insurance (hereinafter referred to as the Decision No. 60/2015/QD-TTg);

Pursuant to the Prime Minister’s Decision No. 38/2019/QD-TTg dated December 31, 2019 on amending and supplementing a number of articles of the Prime Minister’s Decision No. 60/2015/QD-TTg dated November 27, 2015 on financial management mechanism on social insurance, health insurance, unemployment insurance and management expenses for social insurance, health insurance and unemployment insurance (hereinafter referred to as the Decision No. 38/2019/QD-TTg);

At the proposal of Director-General of Department of Public Expenditure;

The Minister of Finance hereby promulgates the Circular on amending and supplementing a number of articles of the Circular No. 20/2016/TT-NHNN dated February 03, 2016 of the Ministry of Finance on providing guidance on the implementation of financial management mechanism on social insurance, health insurance, unemployment insurance and management expenses for social insurance, health insurance and unemployment insurance.

Article 1. To amend and supplement a number of articles of the Circular No. 20/2016/TT-BTC as follows:

1. To amend Clauses 2 and 3, Article 2 as follows:

“2. Employment service centers of provinces, centrally run cities, unemployment insurance organizations affiliated to the Ministry of Labor, War Invalids and Social Affairs (hereinafter referred to as “unemployment insurance organizations”); Agencies and organizations affiliated to the Labor, War Invalids and Social Affairs sector that are assigned to organize and implement the task of receiving dossiers and settling insurance regime for labor accidents, occupational diseases and tasks related to the management and use of the labor accident and occupational disease insurance fund.

3. Agencies, organizations, and individuals related to financial management mechanism on social insurance (including labor accident and occupational disease insurance), health insurance, unemployment insurance and the management expenses for social insurance, health insurance and unemployment insurance.”

2. To amend Point c, Clause 2, Article 3 as follows:

“c) The Ministry of Labor, War Invalids and Social Affairs shall make an estimate of expenses for unemployment insurance, labor accident and occupational disease insurance policies and expenses for management of unemployment insurance, labor accident and occupational disease insurance as prescribed in Points a and b, Clause 1 of this Article, and send to the Vietnam Social Security (according to forms No. 02, 04 and 05 attached to this Circular).”

3. To amend Article 4 as follows:

“Article 4. Allocation of estimates, assignment of estimates and transferring expenditures

1. Regarding the allocation of estimates, transfer of state-guaranteed expenditures for payment of pensions and social insurance benefits:

a) Based on the state budget spending estimate allocated by competent authorities, the Vietnam Social Security shall allocate detailed estimates as prescribed in Article 27 of the Government’s Decision No. 115/2015/ND-CP dated November 11, 2015 on detailing a number of articles of the Law on Health Insurance regarding compulsory social insurance and send to the Ministry of Finance for appraisal in accordance with the Law on State Budget;

b) Before 25^thevery month, the Ministry of Finance shall transfer an amount equivalent to an average monthly expenditure of the budget estimate allocated by the competent authorities (including the payment expenses) from the central budget into the social insurance fund for the Vietnam Social Security to make a payment to beneficiary in the following month.

c) After the annual estimate is approved, if the expenditures transferred by the Ministry of Finance to the social insurance fund are greater than the estimates, the Vietnam Social Security shall return the difference to the central budget. If the expenditures transferred to the social insurance fund by the Ministry of Finance are less than the estimates, the Ministry of Finance shall make a written request to the competent authorities for allocation of the difference to the Vietnam Social Security.

2. Regarding the allocation and assignment of expense estimates for management of unemployment insurance, labor accident and occupational disease insurance: Within 15 working days from the date on which the Prime Minister’s decision on estimate assignment is received, the Ministry of Labor, War Invalid and Social Affairs shall complete the allocation and assignment of expense estimates for management of unemployment insurance for the Department of Employment and employment service centers affiliated to the Ministry of Labor, War Invalid and Social Affairs; the expenses for management of labor accident and occupational disease insurance for the Department of Work Safety and Departments of Labor, War invalids and Social Affairs.

3. Transferring expenses for social insurance, health insurance, unemployment insurance, labor accident and occupational disease insurance benefits and expenses for management of social insurance, health insurance, unemployment insurance, labor accident and occupational disease insurance to the Social Security of the Ministry of National Defense, Social Security of the Ministry of Public Security and the Ministry of Labor, War Invalid and Social Affairs:

a) Before 25^thevery month, the Vietnam Social Security shall transfer expense for social insurance, health insurance, unemployment insurance, labor accident and occupational disease insurance benefits an amount equivalent to the monthly average monthly expenses of the annual estimates allocated by the competent authority for the Social Security of the Ministry of National Defense and the Social Security of the Ministry of Public Security to make a payment to the beneficiary in the following month. If the monthly expenses is changed, the Social Security of the Ministry of National Defense and the Social Security of the Ministry of Public Security shall send a written request to the Vietnam Social Security for promptly allocating the expenses for payment. The transfer of expenses for medical examination and treatment covered by health insurance shall comply with the Law on Health Insurance;

b) Periodically before the 10^thof the first month of the quarter, the Vietnam Social Security shall transfer the management expenses for the Social Security of the Ministry of National Defense, the Social Security of the Ministry of Public Security and the Ministry of Labor, War Invalids and Social Affairs (Department of Employment and Department of Work Safety) an amount equivalent to the average of one quarter of the allocated estimates. The transfer of expenses for application of information technology shall comply with the Government s Decree No. 64/2007/ND-CP dated April 10, 2007, on information technology application in state agencies’ operations;

c) When it is time to transfer expenditures for social insurance, health insurance and unemployment insurance benefits and management expenses to the units as prescribed but there is no estimate allocated by the competent authority, the Vietnam Social Security shall temporarily allocate the funding as follows: The management expenses are equivalent to the average monthly estimates allocated in the preceding year; payment of social insurance and unemployment insurance to ensure sufficient funding for payment of social insurance and unemployment insurance benefits to its beneficiaries according to reality; level of advance payment for medical examination and treatment covered by health insurance, in accordance with the Law on Health Insurance.”

4. To amend Point a, Clause 1. Article 7 as follows:

“a) When appraising the annual settlement for the medical examination and treatment fund of the provincial social security, the Vietnam Social Security shall clearly record in the appraisal record a 20% of the expenditures for medical examination and treatment remaining (if any) shall be used for localities as prescribed in Point a, Clause 3, Article 35 of the 2008 Law on Health Insurance amended and supplemented in 2014 (hereinafter referred to as “a 20% of the expenditures used in localities”).

5. To amend Clauses 1 and 2, Article 8 as follows:

“1. Based on the subject matters and level of management expenses as prescribed in Articles 9 and 10 of the Decision No. 60/2015/QD-TTg amended and supplemented by Clauses 9 and 10, Article 1 of the Decision No. 38/2019/QD-TTg, the General Director of the Vietnam Social Security shall formulate and promulgate regulations on internal spending for its affiliated units according to standards, norms and regimes stipulated by the state for the organization and implementation.

2. Method for distribution of expenses for collection of voluntary social insurance premiums and health insurance premiums from policy holders by household, pupils and students who are learning at educational institutions under national education system (collection expenses) as prescribed in Point b, Clause 9, Article 1 of the Decision No. 38/2019/QD-TTg:

a) Regarding the average collection expenses of the whole sector are equivalent 7.5% of the contributions of the policy holders, the Vietnam Insurance Security shall implement as follows:

- The remuneration for the collecting agents as prescribed in Point b, Clause 9, Article 1 of the Decision No. 38/2019/QD-TTg. The Vietnam Insurance Security’s General Director shall decide the specific the remuneration for the collecting agents according to each group of policy holders (people who contribute insurance premiums for the first time and people who continue contributing insurance premiums ) and each province and centrally run city, compliance with the actual situation and within the scope of deducted remuneration;

- The social insurance sector is allowed to retain the remaining collection expenses (after paying the collecting agent’s remuneration) for the training and education for the collection, inspection of collecting agents and customer conference organization. The Vietnam Social Security shall allocate funds to the social security of provinces and centrally run cities and relevant units for organization and implementation;

b) Social insurance agencies shall pay remunerations to the collecting agents based on the premiums and lists of policy holders provided by the collecting agents. Remunerations paid to the collecting agents shall be based on the percentage of premiums stipulated by the General Director of the Vietnam Social Security;

c) Social insurance agencies shall provide forms to the collecting agents for printing and preparing lists of policy holders.”

6. To amend Clause 3, Article 8 as follows:

“3. Regarding the method of distribution of expenses for payment of pensions, social insurance and unemployment benefits as prescribed in Clause 4 and Point b, Clause 9, Article 1 of the Decision No. 38/2019/QD-TTg:

a) For the average level of payment for pensions, social insurance and unemployment benefits (the payment expenses) for the whole sector is equal to 0.65% of the total payment of social insurance benefits as prescribed in Clause 4 and Point b, Clause 9, Article 1 of the Decision No. 38/2019/QD-TTg, Social Insurance of Vietnam shall implement as follows:

- To deduction of 70% of the average payment expenses of the whole sector to pay for the paying agents;

+ The Vietnam Social Security’s General Director shall decide the payment expenses (according to the percentage or the absolute number) of the payment for the paying agents of each province and city, so that the provincial social security make the payment for the paying agents;

+ The paying agent shall decide and take responsibility for the use of expenses for the payment paid by the social security and must ensure the safe payment to the right subjects, in accordance with policies and contract signed by the social security and the paying agent;

+ The social security must provide specific tasks that the paying agents must perform in the contracts signed with the paying agents;

- The remaining 30% of the average payment expenses of the whole sector shall be retained for the social security sector to serve the payment (including preserve and archive beneficiary records; checking and supervising the payment; night work, overtime; assisting civil servants, public employees and related workers in the payment days). The Vietnam Social Security shall allocate funds to the provincial, municipal social security and relevant units for organization and implementation;

b) Social insurance agencies shall make payment to the paying agents’ accounts (by non-cash payment) based on the amount of money paid the beneficiaries; the transferred amount is equivalent to the payment expenses according to the percentage of the payment stipulated by the General Director of Vietnam Social Security.”

7. To amend Points a, b and c, Clause 1. Article 9 as follows:

“a) Expenses for propagation and dissemination of policies and laws on social insurance, health insurance and unemployment insurance; conduct of professional training; administrative procedure reforms; administration of policy holders, beneficiaries; investigation, inspection and monitoring; modernization of management system: To comply with related expense contents as prescribed in Clauses 1, 2, 4 and 4, Points b and c, Clause 6, Clause 8 and Clause 11, Article 9 of the Decision No. 60/2015/QD-TTg, Points a and c, Clause 9, Article 1 of the Decision No. 38/2019/QD-TTg;

b) Expenses for serving collection of voluntary social insurance premiums; health insurance premiums from pupils and students who are learning at educational institutions under the management of the Ministry of National Defense and the Ministry of Public Security: The maximum expense is equivalent to 7.5% of the contribution of the policy holders (excluding the collection supported by the state budget, organizations and individuals), of which: The average remuneration level for a voluntary social insurance collecting agent is equal to a maximum of 14% of the premiums paid by the policy holders of voluntary social insurance; the average level of remuneration for educational institutions shall be equal to 2.5% of the contributions of pupils and students; the average level of remuneration for health insurance collecting agents of the remaining subjects is at most equal to 7.0% of the policy holders health insurance premiums;

a) Expenses for carrying out the payment of social insurance benefits equal 0.65% of the expenditure for social insurance benefits (excluding  expenses for medical examination and appraisal, convalescence, supports for prevention, sharing of risks of labor accident, occupational diseases, assistance with occupational changes to people returning to work after recovery from labor accidents, occupational diseases, payment of health premiums), in which remunerations for the paying agents equal 70% of the total of expenditure.”

8. To amend the title of Clause 2, Article 9 as follows:

“2. Within the scope of management expense source allowed to use, the unit shall carry out measures to save money; the saved money shall be used in accordance with Article 10 of the Decision No. 60/2015/QD-TTg and Clause 10, Article 1 of the Decision No. 38/2019/QD-TTg. Particularly, the establishment of income supplementing funds and welfare funds is carried out as follows:”

9. To amend Clause 3, Article 10 as follows:

“3. Handling budget balance at the end of the year, approving and finalizing the settlement:

a) Expenses allocated for annual tasks which are unused at the end of year shall be transferred to the next year for continued use;

b) Approving and finalizing the settlement: The Ministry of Labor, War Invalid and Social Affairs shall be responsible for approving the settlement and notifying the approving result of the annual settlement with the management expenses of unemployment insurance for units specified in the Circular No. 137/2017/TT-BTC dated December 25, 2017 of the Ministry of Finance on approval, appraisal, notification and finalization of annual settlement (hereinafter referred to as “the Circular No. 137/2017/TT-BTC”); finalize and make an annual settlement report on the unemployment insurance management expenses of the Department of Employment and Employment service centers affiliated to the Department of Labor, War Invalid and Social Affairs which are approved to be transferred to the other retained sources (according to the forms as prescribed in Part C of the Form No. B01/BCQT, sub-form F01-01/BCQT and Form No. B02/BCQT attached to the Circular No. 107/2017/TT-BTC dated October 10, 2017 of the Ministry of Finance on providing guidance on the public sector accounting (hereinafter referred to as “the Circular No. 107/2017/TT-BTC) and Form No. 03 attached to the Circular No. 137/2017/TT-BTC) and send to the Vietnam Social Security for finalizing as prescribed.”

10. To add Article 10a as follows:

“Article 10a. Management expenses for labor accident and occupational disease insurance

1. Subject matters and levels of expenditure:

a) Supporting expenses for propagation and dissemination of policies and laws on labor accident and occupational disease insurance; measures for improve employment conditions, prevention of labor accident and occupational disease; organization of professional training on labor accident and occupational disease insurance; administrative procedure reforms on labor accident and occupational disease insurance; modernization of management system: To comply with expenditure contents as prescribed in Clauses 1, 2, 3, 8 and 11, Article 9 of the Decision No. 60/2015/QD-TTg;

b) Supporting expenses for printing, stationery, and copying documents, forms, notices and reports;

c) Supporting expenses for storage of documents related to labor accident and occupational disease insurance;

d) Expenses for supporting agencies of labor, war invalids and social affairs and other relevant agencies in implementing labor accident and occupational disease insurance benefits, performing investigation and inspection and other duties related to labor accident and occupational disease insurance (including summarizing, receiving and appraising dossiers on supporting, preventing and sharing risks of labor accident and occupational disease and adjusting the premium rates). Specific level of support shall be decided by heads of the units within availability of management funds;

dd) Expenses for petrol, vehicle depreciation and parking (no more than one month of base salary/person/month) to civil servants and public employees who are not entitled to business trip expenses as prescribed but regularly travel to residential areas for verifying and checking records of policy holders and beneficiaries of labor accident and occupational disease insurance using their own vehicles. Specific piece rate shall be decided by heads of the units within availability of administrative funds;

e) Expenses for transferring management money of labor accident and occupational disease insurance to the State Treasuries and commercial banks;

g) Expenses for activities of coordinating inspection and monitoring of the settlement of labor accident and occupational disease insurance benefits and duties related to labor accident and occupational disease insurance: To support the coordination activities, business trips, night work, working overtime, vehicle petrol or rents serving the investigation, inspection and monitoring;

h) Non-recurring expenses:

- Supporting expenses for grassroots-level scientific research: To comply with legal regulations on spending regime for science and technology tasks;

- Supporting expenses for learning and exchange of experience with foreign countries, welcoming foreign guests to work in Vietnam on implementation of labor accident and occupational disease insurance policies decided by competent authorities;

- Other expenses in accordance with law provisions.

2. Management and use of expenses:

a) Based on the allocated estimates, relevant units shall manage and use the funds to perform the duties assigned by the Minister of Labor, War Invalids and Social Affairs and matters as prescribed in Clause 1 of this Article;

b) Expenses allocated for annual tasks which are unused at the end of year shall be transferred to the next year for continued use;

c) At the end of the fiscal year, relevant units shall be responsible for preparing and submitting annual settlement report according to the Circular No. 107/2017/TT-BTC to the Ministry of Labor, War Invalids and Social Affairs before March 31 annually for approval, finalization and reporting to the Vietnam Social Security.

3. Approving and finalizing the settlement:

The Ministry of Labor, War Invalid and Social Affairs shall be responsible for approving the settlement and notifying the approving result of the annual settlement with the management expenses of labor accident and occupational disease insurance for units specified in the Circular No. 137/2017/TT-BTC; finalize and make an annual settlement report on the labor accident and occupational disease insurance management expenses to the other retained sources (according to the forms as prescribed in Part C of the Form No. B01/BCQT, sub-form F01-01/BCQT and Form No. B02/BCQT attached to the Circular No. 107/2017/TT-BTC and Form No. 03 attached to the Circular No. 137/2017/TT-BTC) and send to the Vietnam Social Security for finalizing as prescribed.”

Article 2. Effect

This Circular takes effect on May 30, 2020. Regulations specified in Clauses 1, 2, 3, 5, 6 and 7, Article 1 of this Circular shall be applied from the fiscal year 2019 in accordance with the Decision No. 38/2019/QD-TTg, expenditure contents and the expenses for management of labor accident and occupational disease insurance as prescribed in Clause 10, Article 1 of this Circular shall be applied from the fiscal year 2020.

Article 3. Organization of implementation

Agencies and units prescribed herein and other relevant agencies, organizations, and individuals shall be responsible for implementing this Circular.

Any difficulty arising in the course of implementation of this Circular should be promptly reported to the Ministry of Finance for consideration and settlement./.