Decision 51/2018/QD-TTg expenses for the management of social insurance

DECISION

On expenses for the management of social insurance, unemployment insurance and health insurance during 2019-2021^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

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

Pursuant to the November 16, 2013 Law on Employment;

Pursuant to the November 14, 2008 Law on Health Insurance and the June 13, 2014 Law Amending and Supplementing a Number of Articles of the Law on Health Insurance;

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

Pursuant to the National Assembly Standing Committee’s Resolution No. 528/2018/UBTVQH14 of May 26, 2018, on expenses for the management of social insurance and unemployment insurance during 2019-2021;

At the proposal of the Minister of Finance,

The Prime Minister promulgates the Decision on expenses for the management of social insurance, unemployment insurance and health insurance during 2019-2021.

Article 1.Scope of regulation and subjects of application

1. This Decision prescribes expenses for the management of social insurance (including occupational accident and disease insurance), unemployment insurance and health insurance during 2019-2021.

2. Subjects of application:

a/ Units of the Vietnam Social Security;

b/ Social insurance organizations of the Ministry of National Defense and Ministry of Public Security;

c/ Agencies and organizations of the labor, invalids and social affairs sector assigned to receive dossiers and settle occupational accident and disease insurance and unemployment insurance claims, and perform tasks relating to the management and use of the occupational accident and disease fund and unemployment insurance fund.

Article 2.Expenses for themanagement of social insurance, unemployment insurance and health insurance during 2019-2021

1. The expense levels for the management of social insurance, unemployment insurance and health insurance mentioned in Clause 1, Article 2 of the National Assembly Standing Committee’s Resolution No. 528/2018/UBTVQH14 of May 26, 2018, are specified as follows:

a/ The expense level for the management of social insurance in 2019, 2020 and 2021 is respectively 2.15%, 2% and 1.85% of the social insurance premium collection and payment estimates (except expenses for the payment of health insurance premiums for social insurance beneficiaries) to be deducted from profits from investment activities of the social insurance fund;

b/ The expense level for the management of unemployment insurance in 2019, 2020 and 2021 is respectively 2.15%, 2% and 1.85% of the unemployment insurance premium collection and payment estimates (except expenses for the payment of health insurance premiums for unemployment insurance beneficiaries) to be deducted from the unemployment insurance fund;

c/ The expense level for the management of health insurance in 2019, 2020 and 2021 is 4.6%, 4.2% and 3.8% of the health insurance premium collection estimates to be deducted from  collected health insurance premiums but not exceeding the level prescribed in the Law on Health Insurance;

d/ In case the social insurance and unemployment insurance premium collection and payment in a year are smaller or greater than estimates, the management expense levels prescribed at Points a and b of this Clause shall be calculated on actually collected and paid amounts. In case health insurance premium amounts collected in a year are smaller or greater than estimates, the management expense level prescribed at Point c of this Clause shall be calculated on the actually collected amount.

Actually collected and paid amounts for social insurance, unemployment insurance and health insurance to/from the state budget shall be calculated on the basis of insurance participants, insurance beneficiaries, premium rates, and premium payment support rates in accordance with law.

The Minister of Finance shall base himself/herself on the Vietnam Social Security’s annual settlement reports approved by the Governing Body of the Vietnam Social Security to determine management expense levels based on actually collected and paid amounts for social insurance and unemployment insurance and actually collected health insurance premiums, and report implementation results to the Prime Minister.

dd/ For management expense estimates annually assigned by competent authorities, units shall use and settle expenses in accordance with the prescribed regime. The positive difference between the assigned management expense estimate and the management expense level calculated based on the actually collected and paid amount shall be cleared against the management expense estimate of the subsequent year.

2. Within the scope of the funding source to pay expenses for the management of social insurance, unemployment insurance and health insurance as prescribed in Clause 1 of this Article, the structure of expenses is prescribed as follows:

a/ Expenses equal to at least 18% of the total for the information technology application and development investment (including advances from the health insurance reserve fund to hire information technology services during 2016-2018 to link software systems of social insurance agencies and medical examination and treatment establishments so as to reform administrative procedures for medical examination and treatment, thereby raising the effectiveness of the health insurance assessment, management and use of the health insurance fund under the National Assembly’s Resolution No. 68/2013/QH13 of November 29, 2013, on stepping up the implementation of policies and laws on health insurance, toward universal health insurance);

b/ Expenses equal up to 36% of the total for apparatus operation of agencies and units;

c/ Expenses equal up to 46% of the total for the dissemination of policies and laws; the development and management of insurance participants and beneficiaries; professional training courses; reform of procedures; organization of insurance premium collection and payment; and inspection and examination of social insurance, unemployment insurance and health insurance.

If it is necessary to adjust the structure of annual expenses for objective reasons, the Vietnam Social Security shall clearly state such reasons and report them to the Ministry of Finance for summarization and reporting to the Prime Minister.

3. Annually, the Vietnam Social Security shall base itself on Clauses 1 and 2 of this Article and practical requirements to propose specific expense levels (for the Vietnam Social Security, social insurance organizations of the Ministry of National Defense, Ministry of Public Security and Ministry of Labor, Invalids and Social Affairs), submit estimates to the Governing Body of Vietnam Social Securityfor approval, then send them to the Ministry of Finance for summarization and submission to the Prime Minister for decision and assignment.

Article 3. Salary levels for cadres, civil servants, public employees and workers

1. Salary levels for cadres, civil servants, public employees and workers are 1.8 times the State-prescribed salary levels for cadres, civil servants and public employees which are applicable to the following subjects on the state payrolls or working positions approved by competent authorities:

a/ Cadres, civil servants, public employees and workers working in the units of the Vietnam Social Security;

b/ Persons working under labor contracts in social insurance organizations of the Ministry of National Defense and Ministry of Public Security (only social insurance organizations being independent cost-accounting units with their own seals and bank accounts and with their own accounting apparatuses in accordance with the accounting law);

c/ Workers implementing the unemployment insurance policy in local job placement service centers and unemployment insurance organizations of the Ministry of Labor, Invalids and Social Affairs.

2. Salary increase by 0.8 time of the levels prescribed in Clause 1 of this Article (excluding official duty-based allowance, seniority-based allowance, professional responsibility-based allowance, education incentive allowance, attraction allowance in areas with extremely difficult socio-economic conditions, night shift allowance and overtime allowance) is not used to calculate social insurance, health insurance and unemployment insurance premiums and trade union dues, and is no longer used when the salary reform is carried out under Resolution No. 27-NQ/TW of May 21, 2018, of the 7^thplenum of the 12^thParty Central Committee, on reform of the salary policy for cadres, civil servants, public employees, armed forces and workers in enterprises.

Article 4.Effect

This Decision takes effect on February 10, 2019, and applies to the budgetary years of 2019 to 2021.

Article 5.Organization of implementation

1. The Minister of Finance shall inspect the implementation of this Decision in accordance with current regulations. In the second quarter of 2021, the Ministry of Finance shall assume the prime responsibility for, and coordinate with the Vietnam Social Security and related ministries and sectors in, summarizing and assessing results of the implementation of this Decision, and propose the Government to submit to the National Assembly Standing Committee for decision expense levels for the management of social insurance, unemployment insurance and health insurance for the subsequent period.

2. The Minister of Labor, Invalids and Social Affairs shall direct and guide provincial-level Labor, Invalids and Social Affairs Departments and local job placement service centers in receiving dossiers and promptly settling occupational accident and disease insurance and unemployment insurance claims; carry out the dissemination, examination, supervision and tasks relating to the management and use of the occupational accident and disease fund and unemployment insurance fund under the responsibility of the labor, invalids and social affairs sector in order to associate the use efficiency of management expenses with the procedure reform and service quality improvement, thus creating favorable conditions for employers and employees.

3. The Director General of the Vietnam Social Security shall direct and guide the units of the Vietnam Social Security and social insurance organizations of the Ministry of National Defense and Ministry of Public Security in associating the use efficiency of management expenses with results of the development of social insurance, unemployment insurance and health insurance participants, procedure reform and service quality improvement in order to create favorable conditions for agencies, units and people; and organize the social insurance apparatus based on working position and suitable to assigned tasks, and carry out the state payroll downsizing in accordance with law.

4. The Ministers of Finance; Labor, Invalids and Social Affairs; Health; Planning and Investment; and Home Affairs, the Director General of the Vietnam Social Security, and heads of related agencies shall implement this Decision.-

Prime Minister
NGUYEN XUAN PHUC