Are chief accountants and accountants in charge eligible for responsibility allowance? If so, how much is the allowance according to Vietnam’s regulations? These are questions that LawNet has recently received a lot from Customers and Members. LawNet would like to answer these questions as follows:
Article table of contents
1. Chief accountants
According to Circular No. 04/2018/TT-BNV of the Ministry of Home Affairs of Vietnam, a chief accountant working in the following units is eligible for monthly responsibility allowance equivalent to 0.2 of statutory base salary:
- Agencies in charge of revenues and expenditures of state budgets (Vietnam State Treasury, tax authorities, customs authorities);
- Regulatory agencies;
- Public sector entities;
- Budget-using units;
- Entities financed by the state to operate in accordance with particular political-social objectives.
Currently, the statutory base salary is VND 1.490.000/month, thus, monthly responsibility allowance for chief accountants shall be 0,2 x VND 1.490.000/month = VND 298.000.
However, recently, Vietnam’s Government has proposed to increase the statutory base salary in 2020 to VND 1.6 million/month. If this proposal is approved by the National Assembly, the statutory base salary in 2020 will increase by VND 110.000/month compared to 2019 and is the highest statutory base salary increase in recent years. Concurrently, with this increase of statutory base salary, the responsibility allowance for chief accountant will also be increased accordingly. Specifically, it is expected that from July 01, 2020, the responsibility allowance for chief accountant will increase to VND 320.000/month.
A chief accountant working in project management boards holding legal status incorporated by regulatory agencies or public sector entities or in entities in charge of off-budget financial funds is eligible for responsibility allowance decided by competent authority on the basis of applying the responsibility allowance for chief accountant suitable to the operation of their units.
2. Accountants in charge
According to Article 11 of Circular No. 04/2018/TT-BNV, the person appointed to be in charge of accounting for an accounting unit has only one person working as an accountant or one person working as a part-time accountant; accounting, budgeting and financial units of communes, wards and townships or the person appointed to be in charge of accounting for an accounting unit must appoint a chief accountant but cannot immediately appoint a chief accountant is eligible for responsibility allowance equivalent to 0.1 of statutory base salary.
Thus, the current responsibility allowance for an accountant in charge is VND 140.000/month. However, with the Government's proposal to increase the base salary in 2020 to VND 1.6 million/month, it is expected that from July 01, 2020, the monthly responsibility allowance for accountants will increase to VND 160.000/month.
An accountant working in project management boards holding legal status incorporated by regulatory agencies or public sector entities or in entities in charge of off-budget financial funds is eligible for a responsibility allowance decided by competent authority on the basis of applying the responsibility allowance for accountant in charge suitable to the operation of their units.
Nguyen Trinh
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