Thông tư 20/2016/TT-BTC

CIRCULAR

INSTRUCTIONS ON IMPLEMENTATION OF FINANCIAL MANAGEMENT MECHANISM AND ADMINISTRATIVE EXPENSES IN SOCIAL, HEALTH AND UNEMPLOYMENT INSURANCES

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

Pursuant to the Government's Decree No. 215/2013/ND-CP dated December 23, 2013 defining the functions, tasks, entitlements 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 and administrative expenses in social, health and unemployment insurance;

At the request of general director of Department of Public Expenditure;

The Minister of Finance promulgates the Circular providing instructions on implementation of financial management mechanism and administrative expenses in social, health and unemployment insurance.

Chapter I

GENERAL PROVISIONS

Article 1. Governing scope

This Circular provides instructions on implementation of financial management mechanism and administrative expenses in social, health and unemployment insurance.

Article 2. Regulated entities

1. Units affiliated to Vietnam Social Security, insurance agencies affiliated to the Ministry of Defence, Ministry of Public Security.

2. Employment service centers of provinces, central-affiliated cities, unemployment insurance organizations affiliated to the Ministry of Labor, Invalids and Social Affairs (hereinafter referred to as “unemployment insurance organizations”).

3. Agencies, organizations, and individuals related to financial management mechanism and administrative expenses in social, health and unemployment insurance.

Chapter II

FINANCIAL MANAGEMENT MECHANISM

Article 3. Cost estimation

1. Contents of a cost estimate:

a) Estimation of social, health and unemployment insurance receipts and expenses by policy holder, beneficiary; receipts and expenses for social insurance benefits by group of policy holder according to the regulations on social, health and unemployment insurance (forms 01, 02, 03 and 04 enclosed herewith);

b) Estimation of administrative expenses (See form 05 enclosed herewith);

c) Plan of investment from social, health and unemployment insurance funds (Hereinafter referred to as “the investment plan”) (See form 06 enclosed herewith).

2. Cost estimating process:

a) The units affiliated to Vietnam Social Security shall make an estimate of receipts and expenses as prescribed in Points a and b, Clause 1 of this Article and report to general director of Vietnam Social Security;

b) Insurance agencies affiliated to the Ministry of Defence, Ministry of Public Security shall make an estimate of receipts and expenses as prescribed in Points a and b, Clause 1, this Article and report to Vietnam Social Security;

c) The Ministry of Labor, Invalids and Social Affairs shall make an estimate of expenses for unemployment insurance benefits and unemployment insurance administrative expenses as prescribed in Points a and b, Clause 1 of this Article, and report to Vietnam Social Security (forms 04 and 05 enclosed herewith).

3. Vietnam Social Security shall be responsible for compiling the estimates from the agencies prescribed in Clause 2 of this Article and the investment plan prescribed in Point c, Clause 1 of this Article, and reporting to management board of Vietnam Social Security for approval and making submission to the Ministry of Finance, Ministry of Labor, Invalids and Social Affairs, Ministry of Health, Ministry of Planning and Investment (forms 01, 02, 03, 04, 05 and 06 enclosed herewith).

4. Regarding the estimation of social, health and unemployment insurance administrative expenses, the total amount of expenses should not exceed annual administrative expenses prescribed in Clause 2, Article 8 of the Decision No. 60/2015/QD-TTg The estimation of expenses for development investment must be enclosed with a list of investment projects according to the regulations on public investment and construction.

Article 4. Allocation of estimates, transfer of state-guaranteed expenditures for payment of pensions and social insurance benefits

1. Based on the state budget spending estimate allocated by competent authorities, 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 and report to the Ministry of Finance for assessment according to the Law on State budget.

2. Before 25^th every month, the Ministry of Finance shall transfer an amount equivalent to a monthly average expenditure according the annual estimate allocated by competent authorities to Vietnam Social Security for making payment of insurance benefits to beneficiaries in the following month.

3. After the annual estimate is approved, if the funds transferred by the Ministry of Finance to Vietnam Social Security are greater than the estimate, Vietnam Social Security must return the difference the central budget. If the funds transferred are less than the estimate, the Ministry of Finance shall make a written request to competent authorities for allocation of the difference to Vietnam Social Security.

Article 5. Method for determination of interests on premiums delayed, evaded or appropriated

1. Monthly interests on delayed premiums shall be determined in the following formula:

Where:

- (n) Month in which the interests on delayed premiums are determined.

- (n-2) Month preceding two months of month (n).

- Interest rate (%/month) is the monthly average interest rate published by Vietnam Social Security at the beginning of year as prescribed in Point c, Clause 3, Article 6 of the Decision No.60/2015/QD-TTg.

2. If payment of premiums is detected by Vietnam Social Security, competent authorities as being evaded, insufficient or appropriated (hereinafter referred to as “delayed payments”) as of January 01, 2016, in addition to the payables enforced according to laws, the breaching person or entity shall pay the interests on the delayed payments as follows:

a) Interest rate on delayed payments before January 01, 2016 shall be conformable with the interest rate of 2016;

b) Interest rate on delayed payments as of January 01, 2016 shall be conformable with the interest rate of individual years and determined according to the formula in Clause 1 of this Article.

Example 1: On January 20, 2016, a social insurance agency detects Enterprise M has delayed a payment of VND 100 million as the premiums for its employees for 12 months (recorded to the end of December 2015), assuming that the interest rate of 2015 for investment of social insurance funds is 0.7%/month as published by Vietnam Social Security:

- According to Clause 3, Article 122 of the Law on Social Security 2014, in addition to an amount of VND 100 million, Enterprise M has to pay VND 16.8 million as the interests on delayed payments (VND 100 million x 12 month x 2 x 0.7%/month).

- If Enterprise M fails to make the payment or makes insufficient payments during January 2016, such delayed payments shall be transferred to February 2106 to calculate the interests according to the formula in Clause 1 of this Article.

3. The interests on delayed payments in the month includes interests on payments delayed to the end of last month and interests on delayed payments arising in the month as prescribed in Clause 1 of this Article.

Example 2: To the end of December 2015, Enterprise A's delayed payment is VND 700 million (in which the premiums delayed to the end of November is VND 600 million and the premiums delayed in December 12 VND 100 million), and the interest on the delayed payment is VND 50 million. Assuming that the average interest rate on investments of social insurance funds in 2015 is 0.7%/month. According to Clause 3, Article 122 of the Law on Social Security in 2014, the interest on Enterprise A’s delayed payment in January 2016 (month n) is determined as follows:

- In January 2016: In addition to VND 600 million as the amount delayed to the end of November 2015 (month n-2), Enterprise A has to pay the interest twice the average interest rate in 2015 on the amount of VND 600 million. The interest on delayed payment in January 2016 is VND 8.4 million (VND 600 million x 2 x 0.7%).

- Concerning VND 100 million as the delayed amount in December 2015, no interest thereon shall be imposed if Enterprise A fulfills the payment in January 2016. Otherwise, the delayed amount in December shall be transferred to the following month (February 2016) to calculate interests.

- Total interest on the amount delayed to the end of January 2016 Enterprise A has to pay is VND 58.4 million including VND 50 million in December 2015 and VND 8.4 million in January 2016.

4. On a monthly basis, social insurance agencies shall issue a written notice of payment of premiums to employers according to the instructions from Vietnam Social Security specifying the delayed amount and the interests thereon (if any).

Article 6. Payment of pensions, social and unemployment insurance benefits

1. On a monthly basis, social insurance agencies shall transfer money to the paying agents who then make payments of insurance benefits to beneficiaries according to terms and conditions of the signed contract.

2. The paying agents shall be responsible for making payments to beneficiaries in a timely manner.

3. During the duration of the contract, social insurance agencies shall be responsible for appointing staff to inspect and monitor the payment. Expenses paid to the paying agents for carrying out payments are prescribed in Clause 3, Article 8 herein.

Article 7. Management and use of funds for medical examination and treatment under health insurance coverage remaining from January 2015 to December 31, 2020

1. Vietnam Social Security:

a) When appraising the annual balance sheet of the medical examination and treatment fund of the provincial social security, Vietnam Social Security shall record in the appraisal record a 20% of the funds for medical examination and treatment remaining (if any) shall be used for localities as prescribed in Point b, Clause 4, Article 6 of the Government’s Decree No. 105/2014/ND-CP dated November 15, 2014 providing instructions on the implementation of a number of articles of the Law on Health insurance (hereinafter referred to as “a 20% of the funds).

b) Within one month since management board of Vietnam Social Security passes the annual balance sheet of the health insurance fund, Vietnam Social Security shall issue a written notice to the People’s committees of provinces, the Service of Health, the Service of Finance stating that a 20% of the funds shall be used for localities, and at the same transfer all of this amount to the provincial social security according to decisions by the People’s Committees of provinces;

c) Compile the used funds as prescribed in Clause 3 and Clause 4 of this Article into the balance sheet of the health insurance fund.

2. The Service of Health:

a) Based on the written notice from Vietnam Social Security, the Service of Health shall preside over and cooperate with the Service of Finance and the provincial social security in making a fund use plan in order of priority as prescribed in Point a, Clause 3, Article 35 amending and supplementing the Law on Health insurance, making submission to the People’s committees of provinces for approval and reporting to provincial People’s Councils;

b) Preside over and cooperate with the provincial social security in inspecting management and use of funds for procuring medical and transport equipment by relevant units.

3. The provincial social security:

a) Upon receipt of approval from presidents of the People's committees of provinces, the provincial social security shall:

- In case of supporting the fund for medical examination and treatment for the poor: Transfer money to the fund for medical examination and treatment for the poor according to the Ministry of Health, the Ministry of Finance’ Joint Circular No. 33/2013/TTLT-BYT-BTC dated October 18, 2013 providing instructions on implementation of the Prime Minister’s Decision No. 14/2012/QD-TTg dated March 01, 2012 amending a number of articles of the Prime Minister's Decision No. 139/2002/QD-TTg dated October 15, 2002 on medical examination and treatment to the poor; and at the same time, compile the transferred money into the spending estimate of the provincial health insurance fund (within a 20% of the funds);

- In case of supporting payment of premiums by some category of policy holders: Account for health insurance premiums and make the spending estimate from the provincial health insurance fund (within a 20% of the funds) based on the list of policy holders eligible for supports and support levels;

- In case of procuring medical and patient transport equipment at district level: Transfer funds to the deposit account belonging to relevant units according to the procurement schedule as prescribed in the regulations on bidding and compile the used funds into expenditures of the provincial health insurance fund (within 20% of the funds).

b) Cooperate with the Service of Health in inspecting the use of funds by relevant units to ensure the funds are used in a right and transparent way;

c) Within 12 months since the written notice from Vietnam Social Security is issued as prescribed in Point b, Clause 1 of this Article, the funds allocated for localities leftover or un-used shall be recovered and returned to Vietnam Social Security.

4. Social insurance agencies affiliated to the Ministry of National Defense, Ministry of Public Security:

If funds for medical examination and treatment for soldiers, people's public security forces and cipher forces are greater than expenses for medical examination and treatment and transportation in the year: After management board of Vietnam Social Security passes its annual balance sheet, the funds remaining shall be used according to Clause 2, Article 21 of the Government’s Decree No. 70/2015/ND-CP dated September 01, 2015 and compiled into expenditures for medical examination and treatment of social insurance agencies affiliated to the Ministry of National Defense, Ministry of Public Security.

5. The units allocated the funds for procurement of medical and transport equipment shall:

a) Manage and use the funds according to the regulations on procurement of assets and include them in other sources of funds of the unit according to the Law on State budget and guiding documents;

b) Finalize the funds allocated with the provincial social security or with social insurance agencies affiliated to the Ministry of Defence, Ministry of Public Security (if relevant units are under the management of the Ministry of Defence, Ministry of Public Security).

Chapter III

ADMINISTRATIVE EXPENSES

Article 8. Administrative expenses of Vietnam Social Security

1. Based on the subject matters and level of administrative expenses prescribed in Article 9 (except subject matters prescribed in Clause 9) and Article 10 of the Decision No. 60/2015/QD-TTg general director of Vietnam Social Security shall construct and promulgate regulations on internal spending for its affiliated units according to standards, norms and regimes stipulated by the state.

2. Method for distribution of expenses for collection of voluntary social insurance premiums and health insurance premiums from policy holders by household, students who are learning at educational institutions under national education system is prescribed in Point a, Clause 5, Article 9 of the Decision No.60/2015/QD-TTg:

a) Average level of expenditure for the entire sector equals 7% of the premiums and 75% of this average level shall be set aside by Vietnam Social Security as remunerations for the collecting agents.

- Based on actual conditions of localities, general director of Vietnam Social Security shall stipulate level of expenditure according to percentage of the premiums paid by individual categories of policy holders, and in individual provinces, cities in order for the provincial social security to make payments to the collecting agents;

- The remaining 25% shall be allocated to the social insurance sector as expenses for training in collection of premiums and inspecting the collecting agents. Vietnam Social Security shall allocate funds to the provincial, municipal social security and relevant units for implementation.

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

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

3. Method of distribution of expenses for payment of pensions, insurance benefits is prescribed in Clause 2, Article 4 and Point b, Clause 5, Article 9 of the Decision No. 60/2015/QD-TTg:

a) Average level of expenditure for carrying out the payment of social and insurance benefits (level of expenditure for carrying out the payment) equals 0.78% of the expenditure for insurance benefits and 63% of this level shall be deducted and transferred by Vietnam Social Security to the paying agents for covering the expenses prescribed in Point c of this Clause.

- General director of  Vietnam Social Security shall stipulate the level of expenditure for carrying out the payment according to the percentage of the expenditure for individual provinces, cities.

- The remaining 37% shall be allocated to the entire social insurance sector for covering other expenses (printing forms, receipt of pension note, list of policy holders, storage of records of beneficiaries, inspection and monitoring of payment, night work, working overtime...) Vietnam Social Security shall allocate funds to the provincial, municipal social security and relevant units for implementation.

b) Social insurance agencies shall make payment to the paying agents (through bank accounts) based on the amount of money paid the beneficiaries; level of expenditure for carrying out the payment shall be based on the percentage of the expenditure stipulated by general director of Vietnam Social Security.

c) The paying agents shall be responsible for using the funds to cover expenses for: Procurement of safes, bill counters, bags, queue management systems (if any); renting money transport vehicles, locations, security staff, account transfer fees, cash withdrawal fees, issuance of ATM cards to beneficiaries, remunerations for carrying out the payment; drinks at transaction locations and monitoring of beneficiaries in the administrative division; other expenses.

4. Method of supplementing incomes of staff, officials and civil servants, and employees from income supplementing funds is prescribed in Point b, Clause 1, Article 10 of the Decision No. 60/2015/QD-TTg:

a) Social insurance agencies shall supplement monthly or quarterly income of officials and civil servants and employees no more than 60% of monthly or quarterly average level of income supplementation of last year. Particularly for 2016, monthly or quarterly level of income supplementation shall be decided by heads of the units but no more than 60% of monthly or quarterly wage funds in the year.

b) After the annual balance sheet is approved, the social insurance agencies shall determine the saved funds and amount reserved for establishment of the income supplementing fund according to internal spending regulations to pay and supplement income of officials and civil servants and employees as follows:

- If the saved funds for establishment of the income supplementing fund is greater than the amount supplemented to the income of officials and civil servants and employees, the social insurance agencies shall continue to supplement their income according to the sector's internal spending regulations;

- If the saved funds for establishment of the income supplementing fund is less than the amount supplemented to income of officials and civil servants and employees, the social insurance agencies shall use provisions for the income supplementing fund to compensate for. If the income supplementing fund is insufficient, the supplementation of income shall rely on the funds saved for establishment of the income supplementing fund of the following year.

Article 9. Administrative expenses of social insurance agencies affiliated to Ministry of National Defense, Ministry of Public Security

1. Expenses:

a) Expenses for propagation and dissemination of policies and laws on social, health and unemployment insurance; conduct of professional training; administrative procedure reforms; administration of policy holders, beneficiaries; investigation, inspection and monitoring; modernization of management system: Prescribed in Clauses 1, 2, 3, 4, 6, 8 and 11 of Article 9, Decision No. 60/2015/QD-TTg;

b) Expenses for serving collection of voluntary social insurance premiums; health insurance premiums from students who are learning at educational institutions under the management of the Ministry of National Defense, Ministry of Public Security: Level of expenditure equals 7% of premiums excluding grants, aids from state, organizations and/or individuals in which remunerations for the collecting agents equal 75% of level of expenditure prescribed by general director of Vietnam Social Security;

c) Expenses for carrying out the payment of social insurance benefits equal 0.78% of the expenditure (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) from component funds such as labor accident fund, occupational disease fund, pension and survivorship insurance fund in which remunerations for the paying agents equal 63% of the level of expenditure prescribed by general director of Vietnam Social Security;

d) Expenses for transferring money to the State Treasuries, commercial banks

d) Expenses for printing and copying documents, forms, notices and reports;

dd) Expenses for medical clothes for health insurance examiners working in medical facilities (two sets/person/year) as prescribed by the Ministry of Health;

g) Expenses for phone charges to a number of job positions in social insurance agencies affiliated to the Ministry of National Defense, Ministry of Public Security excluding those who are equipped with mobile phones or fixed line telephones at home according to laws (no more than VND 250,000/person/month at a maximum). Specific level of support and persons entitled to receive support shall be decided by directors of social insurance agencies affiliated to the Ministry of National Defense, Ministry of Public Security within availability of administrative funds;

h) Expenses for supporting central units affiliated to the Ministry of National Defense, Ministry of Public Security in coordinating conduct and implementation of social, health and unemployment insurance policies and regimes in agencies and units affiliated to the Ministry of National Defense, Ministry of Public Security: Annual level of support shall be decided by the Minister of Defence, Minister of Public Security via submissions from directors of social insurance agencies affiliated to the Ministry of National Defense, Ministry of Public Security within availability of administrative funds;

The central units shall manage and use the support according to current financial spending regulations and send financial statements to social insurance agencies affiliated to the Ministry of National Defense, Ministry of Public Security at the end of the fiscal year; documentary evidence of expenses shall be filed at the units;

i) Expenses for activities of coordinating collection of premiums, payment of social, health and unemployment insurance benefits including: Expenses for business trips, night work, working overtime, vehicle petrol or rents;

k) Recurring expenses for employees contracted by social insurance agencies affiliated to the Ministry of National Defense, Ministry of Public Security according to laws (if any), including: Expenses for salaries, allowances and other contributions along with salaries, administrative management;

l) Non-recurring expenses:

- Expenses for grassroots-level scientific research: Prescribed in the regulations on spending regime for science and technology tasks;

- Expenses for training staff, officials and civil servants according to the state’s program: Subject matters and level of expenditure are prescribed in the regulations on management and use of funds for training officials and civil servants;

- Expenses for hiring labor, execution of contracts for piecework or employment contracts with respect to the work which does not necessarily require permanent personnel as prescribed in the regulations on labor;

- Expenses for learning and exchange of experience with foreign countries, welcoming foreign guests to work in Vietnam on implementation of social and health insurance policies in military, public security and cipher areas decided by competent authorities; Subject matters and level of expenditure are prescribed in the regulations on expenses for short-term business trips abroad by state officials covered by state budget, expenses for welcoming foreign guests to work in Vietnam, organization of international conferences and seminars in Vietnam and reception of domestic guests;

- Other expenses according to laws.

2. Relevant units shall take measures to economize on administrative funds. The saved funds shall be used in accordance with Article 10 of the Decision No. 60/2015/QD-TTg Particularly, the establishment of income supplementing funds and welfare funds is carried out as follows:

a) Establish funds to supplement income of officials and civil servants and contracted employees in the year and provide for any shortage of receipts in the following year. Supplementing income must be based on performance of individuals and the payment is prescribed in Clause 4, Article 8 herein;

b) Establish welfare funds (no more than three months of salary and income of officials and civil servants and contracted employees in the units in the year) in accordance with Point c, Clause 1, Article 10 of the Decision No. 60/2015/QD-TTg.

3. At the end of the fiscal year, the social insurance agencies affiliated to the Ministry of National Defense, Ministry of Public Security shall prepare and submit a balance sheet of the administrative funds to Vietnam Social Security before May 31 annually.

4. The social insurance agencies affiliated to the Ministry of National Defense, Ministry of Public Security shall be responsible for constructing internal spending regulations based on levels of expenditure prescribed in this Article and current spending regimes in accordance with their operations and making submission to general director of Vietnam Social Security for promulgation.

Article 10. Administrative expenses of unemployment insurance organizations

1. Subject matters and levels of expenditure:

a) Expenses for propagation and dissemination of policies and laws on unemployment insurance; organization of professional training; administrative procedure reforms; modernization of management system: Prescribed in Clauses 1, 2, 3, 8 and 11, Article 9 of the Decision No. 60/2015/QD-TTg;

b) Expenses for printing and copying documents, forms, notices and reports;

c) Expenses for storage of documents related to unemployment insurance;

d) Expenses for supporting agencies of labor, invalids and social affairs and other relevant agencies in settling unemployment insurance benefits, performing investigation and inspection and other duties related to unemployment insurance. Specific level of support shall be decided by heads of the units within availability of administrative funds.

dd) Expenses for petrol, vehicle depreciation and parking (no more than one month of base salary/person) to officials and civil servants 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 using their own vehicles. Specific piece rate shall be decided by heads of the units within availability of administrative funds;

e) Expenses for transferring money to the State Treasuries, commercial banks;

g) Expenses for activities of coordinating inspection and monitoring of the settlement of unemployment insurance benefits and duties related to unemployment insurance: Coordination activities, business trips, night work, working overtime, vehicle petrol or rents serving the investigation, inspection and monitoring;

h) Recurring expenses for operation of the apparatus of the unemployment insurance business according to internal spending regulations including: Expenses for salaries, allowances and other contributions along with salaries, administrative management;

i) Non-recurring expenses including:

- Expenses for grassroots-level scientific research: Prescribed in the regulations on spending regime for science and technology tasks;

- Expenses for training staff, officials and civil servants according to the state’s program: Subject matters and level of expenditure are prescribed in the regulations on management and use of funds for training officials and civil servants;

- Expenses for hiring labor, execution of contracts for piecework or employment contracts according to the regulations on labor regarding works which do not necessarily require permanent personnel;

- Expenses for learning and exchange of experience with foreign countries, welcoming foreign guests to work in Vietnam on implementation of unemployment insurance policies decided by competent authorities;

- Other expenses according to laws.

2. Management and use of funds:

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

b) The funds allocated by the Ministry of Labor, Invalids and Social Affairs including funds for payment of salary to employees out of work (policy holders) which is equivalent to 1.8 times the salary scheme for officials and civil servants stipulated by the state (if any), shall be recorded in the units’ revenues and used within their autonomy according to laws on autonomy mechanism of public service providers and internal spending regulations;

c) At the end of the fiscal year, relevant units shall be responsible for preparing and submitting annual balance sheets according to current regulations on administrative accounting to the Ministry of Labor, Invalids and Social Affairs before March 31 annually for approval and keeping accounts with Vietnam Social Security.

3. Allocation of estimates, transfer of funds and account keeping:

a) Allocation of estimates: Within 15 days since receipt of administrative expense estimates from Vietnam Social Security, the Ministry of Labor, Invalids and Social Affairs shall complete the allocation of estimates and make public disclosure of levels of allocation to relevant units according to current regulations;

b) Transfer of funds: The funds allocated by Vietnam Social Security shall be transferred to deposit accounts of relevant units as prescribed in Clause 3, Article 8 of the Government’s Decree No. 28/2015/ND-CP dated March 12, 2015 detailing a number of articles of the Law on Employment;

c) Account keeping: The Ministry of Labor, Invalids and Social Affairs shall be responsible for granting approval for annual balance sheets of administrative expenses from relevant units; prepare and submit annual balance sheets according to current regulations on administrative accounting to Vietnam Social Security before May 31 annually.

Chapter IV

IMPLEMENTATION

Article 11. Transitional provisions

1. Any surplus or shortfall in financial support from the local budget for the unemployment insurance fund as prescribed in the Ministry of Finance’s Circular No. 96/2009/TT-BTC dated May 20, 2009 providing instructions on financial regime for unemployment insurance funds to the end of 2014 shall be settled as follows:

a) If the amount transferred by the Service of Finance is greater than the financial support as prescribed, Vietnam Social Security shall make a deduction from the unemployment insurance fund and transfer it to the provincial social security for returning to the local budget;

b) If the amount transferred by the Service of Finance is less than the financial support as prescribed, the provincial social security shall report the shortfall to the Service of Finance for submission to competent authorities.

2. Employers are required to pay all the unemployment insurance premiums delayed to the end of 2014 (if any); the state budget shall not provide support for the fund in this case. As of 2015, support from state budget for the unemployment insurance fund shall be conformable with Article 7 of the Government’s Decree No. 28/2015/ND-CP dated March 12, 2015 detailing a number of articles of the Law on Employment and shall be guaranteed by the central budget.

3. The provincial social security which have not yet completed renewal of the method of payment of pensions and social and unemployment benefits through the state's public service organizations as prescribed in Point 3, Section III, Article 1 of the Prime Minister's Decision No. 1215/QD-TTg dated July 23, 2013 granting approval for Vietnam social security development strategy to 2020 shall continue to follow current method of payment. Until the end of 2016 at the latest, the method of payment through the state's public service organizations under the direction of Vietnam Social Security must be completed to ensure uniformity, professionalism and safety for payments.

Article 12. Effect

1. This Decision takes effect as of March 20, 2016 and is applicable as of the fiscal year 2016.

2. The Ministry of Finance’s Circular No. 134/2011/TT-BTC dated September 30, 2011 detailing the implementation of a number of articles of the Prime Minister’s Decision No. 04/2011/QD-TTg dated January 20, 2011 on financial management by Vietnam Social Security and the Ministry of Finance’s Circular No.96/2009/TT-BTC dated May 20, 2009 providing instructions on financial regime of unemployment insurance fund shall expire since the effective date of this Circular.

Article 13. Implementation

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

Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance for consideration and handling./.