Công văn 3039/BHXH-THU

Respectfully to: Units employing laborers in HoChiMinh city

- Pursuant to the Law on Social insurance, Law on medical insurance;

- Pursuant to the Government’s Decree No. 70/2011/ND-CP dated August 22, 2011, stipulating region-based minimum wage levels for laborers working for companies, enterprises, cooperatives, cooperative groups, farms, households, individuals and agencies, organizations employing laborers; the Circular No. 23/2011/TT-BLDTBXH dated September 16, 2011 of the Ministry of Labor, Invalids and Social Affairs;

- Pursuant to guidance of the Ministry of Labor, War Invalids and Social Affairs at the document No.2447/LDTBXH-BHXH dated July 26, 2011; 

- Pursuant to the Official Dispatch No. 3862/BHXH-BT dated September 21, 2011 of Vietnam Social Insurance Agency, on collection of social insurance arrears. 

HCM city social insurance agency guides something on implementation of the wage levels for payment of Social Insurance, Health Insurance applied from October 01, 2011 as follows:

1. The wage levels as the basis for payment of social insurance, medical insurance for employees exercising the wage regime which are decided by employers

1.1. Minimum wages paid for employees doing simplest works in normal labor conditions in units, enterprises in HoCHiMinh city specified in Article 1 of the Government’s Decree No. 70/2011/ND-CP dated August 22, 2011 as follows:  

+ The level of 2,000,000 VND/month applied to units, enterprises operating in Cu Chi, Hoc Mon, Binh Chanh, Nha Be districts.

+ The level of 1,780,000 VND/month applied to units, enterprises operating in Can Gio rural districts.

1.2. Units employing laborers shall review the minimum wages in wage scale, payroll which units have registered with the Labor – Invalids and Social affairs agencies to correct them for conformity with principle of being not lower than the new region-based minimum wages mentioned above.

On that basis, correcting the wage levels in contracts as the basis for payment of social insurance, medical insurance with each employee in accordance with wage scale, payroll of units from October 01, 2011.

Attention to:

- The region-base minimum wages are used to sign labor contracts and pay social insurance, medical insurance only for employees who do simplest works in normal labor conditions in units employing laborers.  For employees vocationally trained (including cases trained by units), the lowest wages in contracts must higher than at least 7% the region-based minimum wages.

- Written corrections of the mentioned-above wage levels (under forms of Decision or Annex of contract, etc) are original dossiers as the basis for comparison with the social insurance, medical insurance payment levels and entitlement levels of employees subject to correcting wages of payment of social insurance, medical insurance at time of October 2011 as prescribed above.

- For units employing laborers failing to correct the mentioned-above region-based minimum wages, as result that some employees have wage levels lower than the new region-based minimum wages.  While waiting units exercise in accordance with regulation, social insurance agencies shall temporarily adjust the wage levels for payment of social insurance, medical insurance for above laborers equal to the new region-based minimum wages from October 2011.

1.3. Employees signing labor contracts at offices or head quarters located in Hochiminh city but working in other regions shall apply the region-base minimum wages at working places inscribed in labor contracts for correcting wages in contracts as basis for social insurance, medical insurance payment and entitlement.   

1.4. For employees exercising the wage regime provided by State (according to the Decree No. 204/2004/ND-CP; Decree No. 205/2004/ND-CP dated December 14, 2004 of Goverment), shall still apply the general minimum wage for social insurance, medical insurance payment and entitlement, not apply the mentioned-above region-based minimum wages.

2. Some other provisions

2.1. Payment of social insurance during probation period according to the guiding official dispatch No. 2447/LDTBXH-BHXH dated July 26, 2011 of the Ministry of Labor, Invalids and Social Affairs.

“For employee with probation period inscribed in labor contract which is subject to participation in compulsory social insurance (labor contract with duration of 3 months or more, of labor contract with undefined duration), the employer and employee must pay compulsory social insurance for the probation period.  The wage level as the basis for payment of social insurance for the probation period is the wage level inscribed in labor contract”.

- The Social insurance Payment as prescribed above must ensure timeliness, from the first probation month to ensure regimes of social insurance, medical insurance, unemployment insurance for employees according to Law on social insurance, Law on medical insurance.

Attention to: If the probation period is agreed by employer and employee under a separate probation contract, not inscribed concurrently in labor contract as prescribed above, the employer and employee shall pay social insurance, medical insurance, unemployment insurance only under the official labor contract, after ending the probation period.

- Units employing laborers shall, based on the actual labor management and use at units, implement payment of social insurance, medical insurance, unemployment insurance for employees under forms of signning contracts as mentioned above. 

2.2. To impelment collection of social insurance arrears according to the Official Dispatch No. 3862/BHXH-BT dated September 21, 2011 of Vietnam Social Insurance Agency

- From October 01, 2011, units employing laborers implement the collection of social insurance and medical insurance arrears for all cases of employees being subject to participation in compulsory social insurance but paid lately (including previous cases which social insurance agencies have guided temporary suspension in order to wait handling of administrative violations by competent state agencies).

- Dossier and procedures for the collection of arrears shall be implemented by units according to the enumerating-dossier table No. 103 - The collection of compulsory social insurance and medical insurance (adjusted – enclosed), not according to the enumerating-dossier table No. 107 (cancelled from October 01, 2011).

- Social insurance agencies shall notify competent state agencies on cases of the collection of arrears above for their handling as prescribed.

In the course of implementation, any arising problems should be reported to the Hochiminh city social insurance Agency for timely guide and supplementation.