CIRCULAR NO 422016TT BLDTBXH DATED DECEMBER 28, 2016, ON INDEXING FACTOR IN CALCULATION OF AVERAGE MONTHLY INCOME FOR WHICH SOCIAL INSURANCE HAS BEEN PAID

THE MINISTRY OF
LABOR, WAR
INVALIDS AND
SOCIAL AFFAIRS
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 42/2016/TTBLDTBXH

Ha Noi, December 28, 2016

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

1. Entities subject to the indexing of wages for which social insurance has been paid as prescribed
in Clause 2 Article 10 of the Decree No. 115/2015/ND-CP are employees who are paying social
insurance or have their period of social insurance premium payment preserved, having paid social
insurance according to wage regime as decided by the employers, eligible for retirement pension,
lump-sum allowance upon retirement or lump-sum social insurance or employees whose relatives
are eligible for lump-sum survivorship allowance upon their death in the period from January 01,
2017 to December 31, 2017.
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:
Table 1
Year
Indexing
factor
Year
Indexing
factor

Before
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
1995
4.40

3.74 3.53 3.42 3.18 3.04 3.09 3.10 2.99 2.89 2.69 2.48

2006 2007 2008 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 1.03 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 Indexing factor of the year

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

2008 2009 2010 2011 2012 2013 2014 2015

Indexing factor 1.73

1.62

1.48

1.25

1.15

1.08

1.03

1.03

2016

2017

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

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