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

...

...

...

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:

...

...

...

Year

Before 1995

1995

1996

1997

1998

1999

2000

2001

...

...

...

2003

2004

2005

Indexing factor

4.40

3.74

3.53

3.42

3.18

...

...

...

3.09

3.10

2.99

2.89

2.69

2.48

Year

2006

2007

...

...

...

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

...

...

...

1.00

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

...

...

...

Where, the indexing factors of the years are specified in Table 2:

Table 2

Year

2008

2009

2010

2011

2012

2013

...

...

...

2015

2016

2017

Indexing factor

1.73

1.62

1.48

1.25

1.15

...

...

...

1.03

1.03

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

Thông tư 42/2016/TT-BLĐTBXH quy định mức điều chỉnh tiền lương và thu nhập tháng đã đóng bảo hiểm xã hội do Bộ trưởng Bộ Lao động - Thương binh và Xã hội ban hành