Circular 04/2010/TT-BLDTBXH on adjustment rates for wages and monthly income already paid into social insurance

Circular 04/2010/TT-BLDTBXH, issued by the Ministry of Labor, Invalids and Social Affairs on 29 January 2010, sets the coefficients used to adjust the monthly wage, salary, and income on which social insurance has been paid. It implements Decree 83/2008/ND-CP, which adjusts wages and salaries for workers paid under employer-set wage schemes, and Decree 134/2008/ND-CP, which adjusts monthly income for voluntary social insurance participants. These revaluation coefficients feed directly into pension and lump-sum benefit calculations, because past contributions are restated to current value before averaging. The Circular covers two groups whose benefits fall due between 1 January 2010 and 31 December 2010: workers with employer-set social insurance wages who claim a pension, a one-time retirement allowance, a one-time social insurance payout, or whose survivors receive a one-time death allowance; and voluntary social insurance participants in the same situations. For employer-set wages, the adjusted monthly wage for each year equals the total monthly wage on which social insurance was paid that year multiplied by the adjustment coefficient for the corresponding year. The coefficient table (Table 1) is: 2.72 for years before 1995, 2.31 for 1995, 2.18 for 1996, 2.11 for 1997, 1.96 for 1998, 1.88 for 1999, 1.91 for 2000, 1.91 for 2001, 1.84 for 2002, 1.78 for 2003, 1.66 for 2004, 1.53 for 2005, 1.42 for 2006, 1.31 for 2007, 1.07 for 2008, and 1.00 for both 2009 and 2010. For voluntary social insurance, the adjusted monthly income for each year equals the total monthly income on which social insurance was paid that year multiplied by the corresponding coefficient in Table 2: 1.07 for 2008, 1.00 for 2009, and 1.00 for 2010. Where a worker has both compulsory and voluntary periods, the respective coefficients apply, and where there is employer-set wage time it is adjusted under the Table 1 rule. The averaged adjusted wage or income then serves as the basis for the pension, one-time retirement allowance, one-time social insurance payout, and one-time death allowance under the cited provisions of Decree 152/2006/ND-CP, Decree 68/2007/ND-CP, and Decree 190/2007/ND-CP. The Circular takes effect 45 days after signing, with provisions applied from 1 January 2010. For calculators, it supplies the complete year-by-year revaluation multipliers for social insurance benefits claimed in 2010.