THE MINISTRY OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS
Circular No. 42/2016/TT-BLDTBXHdatedDecember28, 2016onindexing factor in calculation of average monthly income for which social insurance has been paid
Pursuant tothe Decree No. 106/2012/ND-CP dated December 20th 2012 by the Government defining the functions, tasks, powers and organizational structure of the Ministry of Labor, War Invalids and Social Affairs;
Pursuant to the Decree No. 115/2015/ND-CPdated November 11, 2015 by the Government detailing a number of articles of the Law on Social insurance regarding compulsory social insurance (hereinafter referred to as the Decree No.115/2015/ND-CP);
Pursuant to the Decree No.134/2015/ND-CPdated December 29, 2015 by the Government detailing a number of articles of the Law on Social insurance regarding voluntarysocial insurance(hereinafter referred to as the Decree No.134/2015/ND-CP);
At the request of the Director ofthe Department ofSocial Insurance,
The Minister of Labor, War Invalids and Social Affairshereby promulgates the Circular on the indexing factors in calculation of average monthly income for which social insurance has been paid.
Article 1.Subject of application
1.Entities subject to the indexing of wages for which social insurance has been paid as prescribed in Clause 2 Article 10 of the Decree No.115/2015/ND-CPare employees who are payingsocial insuranceor have their period of social insurance premium payment preserved, having paid social insurance according to wage regime as decided by the employers, eligible for retirement pension, lump-sum allowance upon retirement or lump-sum social insurance or employees whose relatives are eligible for lump-sum survivorship allowance upon their death in the period from January 01, 2017 to December 31, 2017.
2.Entities subject to the indexing of monthly earnings for which the social insurance has been paid as prescribed in Clause 2 Article 4 of the Decree No.134/2015/ND-CPare people covered by the voluntary social insurance who are eligible for retirement pension, lump-sum allowance upon retirement, lump-sum social insurance or people whose relatives are eligible for lump-sum survivorship allowance upon their death in the period from January 01, 2017 to December 31, 2017.
Article 2. Indexing in calculation of monthlywages for which social insurance has been paid
1.Monthly wages for which the social insurance has been paid applicable to entities specified in clause 1 Article 1 of this Circular are indexed as follows:
Indexed monthly wage as the basis for social insurance payment of a year | = | Totalmonthlywageas the basis for social insurance paymentaccordingtowageregime set by employersoftheyear | x | Indexing factorof the year |
Where, the indexing factors of the years are specified in Table 1:
Table 1
Year | Before 1995 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 |
Indexing factor | 4.40 | 3.74 | 3.53 | 3.42 | 3.18 | 3.04 | 3.09 | 3.10 | 2.99 | 2.89 | 2.69 | 2.48 |
Year | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
Indexing factor | 2.31 | 2.13 | 1.73 | 1.62 | 1.48 | 1.25 | 1.15 | 1.08 | 1.03 | 1.03 | 1.00 | 1.00 |
2.For employees who pay both the social insurance according to the wage regime prescribed by the State and the social insurance according to the wage regime set by the employers, then the monthly wage for which the social insurance has been paid according to the wage regime set by the employers shall be indexed according to regulations in clause 1 of this Article.
Article 3.Indexingof monthlyearningsfor which social insurance has been paid
1. Monthlyearningsfor which the social insurance has been paid applicable to entities specified in clause 2 Article 1 of this Circular shall beindexedas follows:
Indexed monthly earnings as the basis for social insurance payment of a year | = | Total monthly earnings as the basis for social insurance payment of a year | x | Indexing factorof the year |
Where, theindexing factorsof the years are specified in Table 2:
Table 2
Year | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
Indexing factor | 1.73 | 1.62 | 1.48 | 1.25 | 1.15 | 1.08 | 1.03 | 1.03 | 1.00 | 1.00 |
2. For employees who payboththecompulsorysocial insuranceandthevoluntarysocial insurance,then themonthlywage for which the social insurance has been paid shall beindexedaccording to regulations in clause 1 of this Article. For employees who pay the social insurance according to the wage regime set by the employers, then the monthlywage for which the social insurance has been paid according to the wage regime set by the employers shall beindexedaccording to regulations in clause 1Article 2 of this Circular. The average monthly earnings for which the voluntary social insurance has been paid or the average wage and monthly earnings for which social insurance has been paid as the basis for calculation of retirement pension, lump-sum allowance upon retirement, lump-sum social insurance and lump-sum survivorship allowance shall be determined according to regulations in Clause 4 Article 11 of the Decree No.115/2015/ND-CPand Clause 4 Article 5 of the Decree No.134/2015/ND-CP.
Article 4.Implementation provisions
1.This Circular takes effect on February 11, 2017; the indexing specified in this Circular shall be applicable from January 01, 2017.
2.Any difficulties arising in the course of implementation of this Circularshallbe reported to the Ministry of Labor, War Invalids and Social Affairs for solution./.
For the Minister
The Deputy Minister
Doan Mau Diep
Vietnamese
Circular 42/2016/TT-BLĐTBXH DOC (Word)
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