On September 22, 2022, the Prime Minister issued Decision No.19/2022/QD-TTg (“Decision 19”) stipulating the expenses for the management of social insurance, unemployment insurance and health insurance in the period of 2022 – 2024. Decision 19 contains the following notable contents:
1. The maximum management expense level of social insurance (SI), unemployment insurance (UI) and health insurance (HI) in the period of 2022 – 2024
According to Clauses 1 and 2, Article 2 of Decision 19, the maximum management expenses for SI (including insurance for labor accidents and occupational diseases), UI, and HI from 2022 – 2024 are applied as follows:
|
STT |
Content |
Average of 2022 - 2024 |
2022 |
2023 |
2024 |
|
1 |
Management expenses of SI and UI |
1,54% |
1,59% |
1,54% |
1,49% |
|
2 |
Management expenses of HI |
3,5% |
3,55% |
3,5% |
3,45% |
Particularly for the management expenses of SI and UI: If the receipts and expenditures in the year does not meet the estimates, the management expenses shall be calculated based on the actual amount; in case the receipts and expenditures of SI and UI in the year exceeds the estimates, the management expenses shall comply with the assigned estimate [1].
2. Purposes of expenses for managing SI, UI and HI in the period of 2022 – 2024
Spending tasks in the period of 2022 - 2024 within the scope of expenses for managing SI, UI and HI include 03 groups:
- Expenditures for propagation, development of participants, beneficiary management, professional training and retraining, reform of administrative procedures, organization of collection and expenditure, inspection and inspection;
- Expenditures for information technology application, basic construction investment;
- Expenditures for activities of units under the Vietnam Social Insurance, Social Insurance of the Ministry of National Defense, People’s Public Security Social Insurance and units assigned to implement policies on UI, labor accident insurance and occupational diseases in the labor – war invalids and social sector [2]. Expenditures in this sector is up to 35.3% of total management expenses in the period 2022 – 2024.
3. Salary expenditures for cadres, officials, public employees and employees
The salary expenditure for the following subjects in the payroll or job position quota approved by the competent authority for cadres, officials, public employees and employees in the following positions is equal to 1.8 times the salary for cadres, officials and public employees prescribed by the State:
- Cadres, officials, public employees and employees working at units under the Vietnam Social Insurance;
- Persons working under labor contracts in the Social Insurance organization of the Ministry of National Defense and the People’s Public Security Social Insurance;
- Employees implement UI policies of the labor – war invalids and social sector [3].
This salary expenditure has been specified in Resolution 09/2021/UBTVQUH15 (“Resolution 09”). Accordingly, both documents stipulated that this salary expenditure shall only be applied until the application of the salary policy reform according to Resolution No.27-NQ/TW dated May 21, 2018. In other words, after the implementation of the Reform, this level of salary expenditure shall no longer be applied.
However, compared to the previous provisions in Resolution 09, Decision 19 has added more limits on the 0.8-time salary increase of the group of cadres, officials, public employees and employees working on the payroll of Vietnam Social Insurance, Social Insurance of Defense and Police units, etc. Accordingly, the salary 0.8-time salary increase must:
- Exclude civil service allowances, occupational seniority allowances, professional responsibility allowances, educational incentive allowances, attraction allowances in areas having extremely difficult socio-economic conditions, night work and overtime work allowances; and
- Not be used to calculate contributions, to enjoy SI, HI, UI and union funds.
The supplementation of restrictions on this increase amount creates convenience and consistency for the calculation of salaries of agencies and units, avoiding duplication, miscalculation, affecting the interests of beneficiaries.
Decision 19 shall take effect from November 10, 2022.
[1] Article 1.1(c) of Resolution 09/2021/UBTVQH15.
[2] Article 3.1 of Decision 19.
[3] Article 5.1 of Decision 19.
Comment: