Circular 35/2019/TT-BLDTBXH coefficients for adjustment of monthly salary after payment of social insurance

CIRCULAR

On prescribing the rate of adjustment of monthly salaries and incomes for which the social insurance premiums have been paid

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Pursuant to the Government’s Decree No. 14/2017/ND-CP dated February 17, 2017 on functions, tasks, powers and organizational structure of the Ministry 0f Labor, War Invalids and Social Affairs;

Pursuant to the Government’s Decree No. 115/2015/ND-CP dated November 11, 2015 on detailing a number of Articles of the Law on Social Insurance regarding compulsory social insurance (hereinafter referred to as Decree No. 115/2015/ND-CP);

Pursuant to the Government’s Decree No. 134/2015/ND-CP dated December 29, 2015 on detailing a number of Articles of the Law on Social Insurance regarding voluntary social insurance (hereinafter referred to as Decree No. 134/2015/ND-CP);

At the proposal of the Director General of the Department of Social Insurance,

The Minister of the Labor, War Invalid and Social Affairs hereby promulgates the Circular on prescribing the rate of adjustment of monthly salaries and incomes for which the social insurance premiums have been paid.

Article 1. Subjects of application

1. Persons subject to the adjustment rate of salary for which the social insurance premiums have been paid as prescribed in Clauses 1 and 2, Article 10 of the Decree No. 115/2015/ND-CP, including:

a) Employees who are subject to the pay scheme under the State’s regulations, started participating in social insurance programs from January 01, 2016, have already enjoyed the one-off social insurance benefit payments, or are dead after bequeathing their relatives the rights of entitlement to one-off social insurance benefit payments already received within the period from January 01, 2020 to December 31, 2020.

b) Employees who pay social insurance premiums according to the pay scheme decided by employers, receive retirement pensions or one-off allowances upon retirement, one-off social insurance benefit payments, or are dead after bequeathing their relatives the rights of entitlement to one-off death insurance benefit payments received from January 01, 2020 to December 31, 2020.

2. Persons subject to the adjustment rate of monthly income for which the social insurance premiums have been paid as prescribed in Clause 2, Article 4 of the Decree No. 134/2015/ND-CP must be voluntary social insurance participants who are entitled to pensions, one-off allowances upon retirement and one-off social insurance benefits, or are dead after bequeathing their relatives the rights of entitlement to one-off death insurance benefit payments already received from January 01, 2020 to December 31, 2020.

Article 2. Adjustment of monthly salaries for which the social insurance premiums have been paid

1. Monthly salaries for which the social insurance premiums have been paid of persons specified in Clause 1 Article 1 herein shall be adjusted according to the following formula:

In which, the adjustment rate of monthly salary for which the social insurance premiums have been paid in the corresponding year shall be determined, based on Table 1 given hereunder:

Table 1:

2. If employees have paid social insurance premiums for periods under both the pay scheme prescribed by the State’s regulations and the pay scheme decided by employers, monthly salaries for which social insurance premiums have been paid of those employees who started participating in social insurance programs according to the pay scheme regulated by the State from January 01, 2016, and monthly salaries for which social insurance premiums have been paid according to the pay scheme decided by employers shall be adjusted in accordance with Clause 1 of this Article.

Article 3. Adjustment of monthly income for which the social insurance premiums have been paid

1. Monthly income for which the social insurance premiums have been paid of persons specified in Clause 2 of Article 1 herein shall be shall be adjusted according to the following formula:

In which, the adjustment rate of monthly income for which the social insurance premiums have been paid in the corresponding year shall be determined, based on Table 2 given hereunder:

Table 2:

2. If employees have both compulsory social insurance contribution period and voluntary one, the monthly income for which the voluntary social insurance premiums have been paid shall be adjusted according to Clause 1 of this Article while the monthly income for which the compulsory social insurance premiums have been paid shall be adjusted according to Article 10 of the Decree No. 115/2015/ND-CP and Article 2 of this Decree.  The average rate of monthly salary and income for which the social insurance premiums have been paid, using as a basis for calculation of retirement pensions, one-off allowances upon retirements, one-off social insurance benefit payments and one-off death insurance benefit payments shall be calculated according to Clause 4, Article 11 of the Decree No. 115/2015/ND-CP and Clause 4, Article 5 of the Decree No. 134/2015/ND-CP.

Article 4. Implementation provisions

1. This Circular takes effect on February 15, 2020; provisions specified in this Circular shall be applied from January 01, 2020.

2. Any difficulties arising in the course of implementation shall be promptly reported to the Ministry of Labor, War Invalid and Social Affairs for consideration and settlement./.