DECREE

ON THE ADJUSTMENT OF PENSIONS AND SOCIAL INSURANCE ALLOWANCE

THE GOVERNMENT

Pursuant to the Law on Organization of the Government of December 25, 2001;

Pursuant to Labor Code dated June 23, 1994 and the Law Amending and Supplementing a Number of Articles of the Labor Code dated April 02, 2002;

Pursuant to the 2004 Resolution No.17/2003/QH11 dated November 04, 2003 on the state budget estimate and the Resolution No.19/2003/QH11 dated November 26, 2003 on 2004 mission of the XI^th National Assembly;

At the proposal of the Minister of Labor, War Invalids and Social Affairs,

DECREE:

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1. Officials, civil servants, workers and public employees; military uniform and public security forces, cipher workers enjoying monthly pension by scale of salary, payroll prescribed by the State.

2. Workers, public employees and workers enjoying monthly pension both having time enjoying salary by scale of salary, payroll prescribed by the State, and having time enjoying monthly pension not according to the salary scale, payroll prescribed by the State.

3. Workers, public employees who are being entitled to receive monthly allowance for labor capacity loss, including persons enjoying monthly allowance under the Decision No.91/2000/QD-TTg dated August 04, 2000 of the Prime Minister.

4. Rubber workers being entitled to receive monthly allowance.

5. Commune, ward or township officials being entitled to receive pension, monthly allowance under the Decree No.121/2003/ND-CP of October 21, 2003 of the Government and the Government's Decree No.09/1998/ND-CP dated January 23, 1998.

Article 2. From October 01, 2005 to September 30, 2006, rate of pension, monthly social insurance allowance for the subjects being entitled to receive pension, monthly social insurance allowance before October 01, 2005 specifying in Article 1 of this Decree shall be adjusted as follows:

1. For officials, civil servants, workers and public employees who retired:

a. Increase 10% on the pension rate currently being enjoyed for people having pension rate before the retirement of less than 390,000VND/month under the Decree No.235/HDBT dated September 18, 1985 of the Council of Ministers; with old salary coefficient of less than 3.06 under the Decree No.25/CP and the Decree No.26/CP of May 23, 1993 of the Government; with the new salary coefficient of 3.99 under the Resolution No.730/2004/NQ-UBTVQHK11 dated September 30, 2004 of the Standing Committee of the National Assembly, the Decision No.128/QD-TW dated December 14, 2004 of the Secretariat of the Party Central Committee, the Decree No.204/2004/ND-CP of December 14, 2004 and the Decree No.205/2004/ND-CP dated December 14, 2004 of the Government.

b. Increase 8% on the pension rate currently being enjoyed for people having pension rate before the retirement of 390,000VND/month or more under the Decree No.235/HDBT dated September 18, 1985 of the Council of Ministers; with old salary coefficient of 3.06 or more under the Decree No.25/CP and the Decree No.26/CP of May 23, 1993 of the Government; with the new salary coefficient of 3.99 or more under the Resolution No.730/2004/NQ-UBTVQHK11 dated September 30, 2004 of the Standing Committee of the National Assembly, the Decision No.128/QD-TW dated December 14, 2004 of the Secretariat of the Party Central Committee, the Decree No.204/2004/ND-CP of December 14, 2004 and the Decree No.205/2004/ND-CP dated December 14, 2004 of the Government.

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a. Increase 10% on the pension rate currently being enjoyed for people having pension rate before the retirement of less than 425,000VND/month under the Decree No.235/HDBT dated September 18, 1985 of the Council of Ministers; with old salary coefficient of less than 4.4 under the Decree No.25/CP of May 23, 1993 of the Government; with the new salary coefficient of less than 5.6 under the Decree No.204/2004/ND-CP of December 14, 2004 of the Government.

b. Increase 8% on the pension rate currently being enjoyed for people having pension rate before the retirement of 425,000VND/month or more under the Decree No.235/HDBT dated September 18, 1985 of the Council of Ministers; with old salary coefficient of 4.4 or more under the Decree No.25/CP of May 23, 1993 of the Government; with the new salary coefficient of 5.6 or more under the Decree No.204/2004/ND-CP of December 14, 2004 of the Government.

3. Increase 10% on the allowances rate currently being enjoyed for those who are being enjoyed to receive monthly allowance for labor capacity loss; those who are being enjoyed to receive monthly allowance according to the Decision No.91/2000/QD-TTg dated August 04, 2000 of the Prime Minister; rubber workers being enjoyed to receive monthly allowance; commune, ward or township officials being entitled to receive pension, monthly social insurance allowance under the Decree No.121/2003/ND-CP of October 21, in 2003 and the Decree No.09/1998/ND-CP dated January 23, 1998 of the Government.

Article 3. The average of monthly salaries paid for social insurance premiums used as basis to calculate pension and lump-sum allowance as retirement, lump-sum social insurance allowance, lump-sum death grant and the adjustment rate of pension for those who are being enjoyed pension according to salary scale and payroll prescribed by the State, the retirement and entitlement of social insurance allowance from October 01, 2005 to September 30, 2006 as follows:

1. The average of monthly salaries paid for social insurance premiums used as basis to calculate pension and social insurance allowance shall be defined as follows:

a. For the period paid for social insurance before October 01, 2004: calculate according to the amount of salary enjoyed and paid for social insurance premiums in accordance with provisions of the Resolution No.35/NQ-UBTVQHK9 dated May 17, 1993 of the Standing Committee of the National Assembly, the Decision No.69-QD/TW dated May 17, 1993 of the Secretariat of the Party Central Committee, the Decree No.25/CP and the Decree No.26/CP of May 23, 1993 of the Government;

b. For the period paid for social insurance from October 01, 2004 onwards: calculate according to the amount of salary enjoyed and paid for social insurance premiums in accordance with provisions of the Resolution No.730/2004/NQ-UBTVQHK11 September 30, 2004 of the National Assembly Standing Committee; the Decision No.128/QD-TW dated December 14, 2004 of the Secretariat of the Party Central Committee; the Decree No.204/2004/ND-CP and the Decree No.205/2004/ND-CP of December 14, 2004 of the Government.

2. The adjustment of pension for the retirees from October 01, 2005 to September 30, 2006 is done once at the month of retirement by the following provisions:

The month of retirement from 10/2005 to 9/2006

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Retirement in the early 9 months of 2006

M10

M11

M12

M1

M2

M3

M4

M5

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M7

M8

M9

Adjustment rate (%)

14

13.5

13

12.5

12

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11

10.5

10

9.5

9.0

8.5

Article 4. For retirees subject to governing of the provisions of Clause 2 of Article 1 of this Decree, then adjust pension according to salary to be of scale of salary, payroll prescribed by the State. The adjustment rates are made in accordance with provisions in Clause 1, Clause 2 of Article 2 and Clause 2 of Article 3 of this Decree.

Article 5. The average of monthly salaries paid for social insurance for used as a basis for calculating pension and pension adjustment rate for retirees pending enough age to enjoy pension based on month pending and period for enough age to be entitled to receive pension shall be defined as follows:

1. For retirees pending enough age to enjoy pension before October 01, 2004 and eligible for enjoying pension during the period from October 01, 2005 to October 01, 2006:

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b. Pension adjustment rate is regulated by the pension adjustment rate for the retirees before October 01, 2004 in accordance with provisions in Article 2 of the Decree No.208/2004/ND-CP and the pension adjustment rate for the retirees before October 01, 2005 as stipulated in Clause 1, Clause 2 of Article 2 of this Decree.

2. For retirees pending enough age to enjoy pension from October 01, 2004 till before October 01, 2005 and eligible for enjoying pension during the period from October 01, 2005 to before October 01, 2006:

a. The average of monthly salaries paid for social insurance for used as a basis for calculating pension according to provisions in Clause 1 of Article 3 of this Decree;

b. The pension adjustment rate is regulated by the one for retirees from October 01, 2004 to September 30, 2005 provided for in Clause 2 of Article 3 of the Decree No.208/2004/ND-CP and the pension adjustment rate for retirees before October 01, 2005 as stipulated in Clause 1, Clause 2 of Article 2 of this Decree.

3. For retirees pending enough age and eligible for enjoying pension in the period from October 01, 2005 to before October 01, 2006:

a. The average of monthly salaries paid for social insurance used as a basis for calculating pension is under the provisions of Clause 1 of Article 3 of this Decree;

b. The pension adjustment rate is regulated by the pension adjustment rate for retirees from October 01, 2005 to September 30, 2006 provided for in Clause 2 of Article 3 of this Decree.

Article 6. Funding for adjustment of pensions, monthly social insurance allowances applied to the subjects defined in Article 1 of this Decree shall be defined as follows:

1. For the subjects to be enjoyed social insurance before October 01, 1995 ensured by state budget.

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Article 7. This Decree takes effect 15 days after its publication in the Official Gazette.

The subjects specified in Article 1 of this Decree shall be entitled to receive pensions, monthly social insurance allowances adjusted according to the provisions of this Decree from October 01, 2005.

Article 8.

1. Ministry of Labor, War Invalids and Social Affairs shall:

a. Guide the implementation of the adjustment of pensions and social insurance allowances specified in this Decree;

b. The Government continues to adjust pensions and monthly social insurance allowances of the subjects defined in Article 1 of this Decree from October 01, 2006 to October 01, 2007.

2. The Ministry of Finance is responsible for ensuring funding of adjustment of pensions, social insurance allowances for the subjects ensured by the State budget.

3. Vietnam Social Insurance is responsible for ensuring funding of adjustment of pensions, social insurance allowances for the subjects ensured by social insurance fund; guiding local social insurance agencies to implement the adjustment of pension, social insurance allowance and organize payment to the subjects in time, according to the provisions of this Decree.

Article 9. The Ministers, heads of ministerial-level agencies, heads of the Governmental agencies, chairmen of the People's Committees of provinces and cities directly under the Central Government are responsible for the implementation of this Decree.

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Phan Van Khai

(Signed)

Nghị định 117/2005/NĐ-CP về việc điều chỉnh lương hưu và trợ cấp bảo hiểm xã hội