Tài liệu Circular no. 422016tt bldtbxh dated december 28, 2016, on indexing factor in calculation of average monthly income for which social insurance has been paid

THE MINISTRY OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS ------- SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness -------------- No. 42/2016/TTBLDTBXH Ha Noi, December 28, 2016 CIRCULAR ON INDEXING FACTOR IN CALCULATION OF AVERAGE MONTHLY INCOME FOR WHICH SOCIAL INSURANCE HAS BEEN PAID Pursuant to the 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-CP dated 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-CP dated December 29, 2015 by the Government detailing a number of articles of the Law on Social insurance regarding voluntary social insurance (hereinafter referred to as the Decree No. 134/2015/ND-CP); At the request of the Director of the Department of Social Insurance, The Minister of Labor, War Invalids and Social Affairs hereby promulgates the Circular on the indexing factors in calculation of average monthly income for which social insurance has been paid. Article 1. Regulated entities 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-CP are employees who are paying social insurance or 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-CP are 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 monthly wages 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 = Total monthly wage as the basis for social insurance payment according to wage regime set by employers of the year x Indexing factor of the year Where, the indexing factors of the years are specified in Table 1: Table 1 Year Indexing factor Year Indexing factor Before 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1995 4.40 3.74 3.53 3.42 3.18 3.04 3.09 3.10 2.99 2.89 2.69 2.48 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 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. Indexing of monthly earnings for which social insurance has been paid 1. Monthly earnings for which the social insurance has been paid applicable to entities specified in clause 2 Article 1 of this Circular shall be indexed as 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 factor of the year Where, the indexing factors of the years are specified in Table 2: Table 2 Year 2008 2009 2010 2011 2012 2013 2014 2015 Indexing factor 1.73 1.62 1.48 1.25 1.15 1.08 1.03 1.03 2016 2017 1.00 1.00 2. For employees who pay both the compulsory social insurance and the voluntary social insurance, then the monthly wage for which the social insurance has been paid shall be indexed according 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 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 Article 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-CP and Clause 4 Article 5 of the Decree No. 134/2015/ND-CP. Article 4. Implementary clause 1. This Circular comes into effect from February 11, 2017; the indexing specified in this Circular shall be applicable from January 01, 2017. 2. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Labor, War Invalids and Social Affairs for solution./. P.P. THE MINISTER THE DEPUTY MINISTER Doan Mau Diep ------------------------------------------------------------------------------------------------------ This translation is made by LawSoft and for reference purposes only. Its copyright is owned by LawSoft and protected under Clause 2, Article 14 of the Law on Intellectual Property.Your comments are always welcomed