Vietnam: What are the new policies on salary, labor and social insurance applied from January 2023?
- What are the regulations on determining union fees and union funds in 2023?
- What is the policy on salary classification for civil servants in banks of Vietnam?
- Shall the procedures for settling lump-sum social insurance benefits in Vietnam include digital signatures on phones?
- Shall preventive and center-based healthcare workers in Vietnam receive the increased occupational allowances from January 1, 2023?
- What are the social insurance benefits for redundant employees when reorganizing state-owned enterprises in Vietnam?
What are the regulations on determining union fees and union funds in 2023?
According to Section 2, Part II of Guideline 65/HD-TLD in 2022 on the development of trade union financial estimates in 2023, union fees in 2023 is determined on the actual number of union members (compared with the General Confederation Organizing Commission) at internal trade unions multiplied by the salary and allowances of union members.
Regarding trade union funds, according to Section 2, Part I of the Regulations issued together with Decision 5440/QD-TLD in 2022 of the Vietnam General Confederation of Labor, the contribution rate of trade union funds is 2%. This contribution rate is calculated on the total salary of employees who are required to pay social insurance premiums.
Thus, the basis for determining the salary funds to pay union funds of 2% in 2023 at the units is calculated as follows:
Salary funds for union funds = Average salary on which social insurance premiums are based in the first 6 months of 2022 x Number of employees who are required to pay social insurance premiums.
What is the policy on salary classification for civil servants in banks of Vietnam?
Pursuant to Circular 14/2022/TT-NHNN of the State Bank of Vietnam on regulations on codes, professional and professional standards and salary classification for specialized banking civil servants.
Accordingly, based on Article 9 of Circular 14/2022/TT-NHNN, the salary classification of bank civil servants is carried out based on the job position, responsibilities, duties and professional skills of civil servants.
Transfers from the current civil servant rank to the specialized civil servant rank of banks must not combine with salary increases or promotion of civil servant rank.
Specifically, the salary classification is specified in Clause 1, Article 10 of Circular 14/2022/TT-NHNN as follows::
Salary classification of specialized civil servants in banks
- The specialized civil servant rank of banks specified in this Circular shall apply Table 2 (Professional payroll for cadres and civil servants in state agencies) issued together with Decree No. 204/2004/ND-CP dated December 14, 12 of the Government on salary regime for cadres, civil servants, public employees and armed forces (as amended and supplemented) as follows:
+ Senior banking controllers apply the payroll of class A3 civil servants under group 1 (A3.1) with salary coefficient from 6.20 to 8.00;
+ Principal banking controllers apply the payroll of class A2 civil servants under group 1 (A2.1), with salary coefficient from 4.40 to 6.78;
+ Banking controllers apply the payroll of class A1 civil servants, with salary coefficient from 2.34 to 4.98;
+ Storekeepers and banking treasurers apply the payroll of class A0 civil servants, with salary coefficient from 2.10 to 4.89;
+ Currency - Treasury Officials apply the payroll of class B civil servants, with salary coefficient from 1.86 to 4.06.
In particular, the salary classification in case of transfers from the current civil servant rank to the specialized civil servant rank of banks is carried out according to the guidance in Clause 2, Section II of Circular 02/2007/TT-BNV.
This regulation will take effect from January 1, 2023.
Shall the procedures for settling lump-sum social insurance benefits in Vietnam include digital signatures on phones?
Based on Decision 422/QD-TTg issued together with Decision 3612/QD-BHXH in 2022, the procedures for settling lump-sum social insurance benefits applying authentication via digital signatures integrated in the mobile application will be piloted from January 1, 2023.
Accordingly, the subjects of pilot application include:
- Employee who enjoy lump-sum social insurance benefits and have been granted social insurance books;
- Social insurance agencies, organizations and individuals involved in the procedures for settling lump-sum social insurance benefits.
Specifically, the procedures for settling social insurance benefits and paying lump-sum social insurance benefits authenticated via digital signature on the phones shall be carried out according to Chapter II of Decision 422/QD-TTg issued together with Decision 3612/QD-BHXH in 2022.
Decision 3612/QD-BHXH in 2022 will take effect from January 1, 2023.
Shall preventive and center-based healthcare workers in Vietnam receive the increased occupational allowances from January 1, 2023?
Pursuant to Resolution 69/2022/QH15 issued by the National Assembly on November 11, 2022 on the State budget estimates for 2023.
Accordingly, in Clause 1, Article 3 of Resolution 69/2022/QH15, preventive medicine and center-based healthcare workers will be adjusted to increase occupational allowances from January 1, 2023.
What are the social insurance benefits for redundant employees when reorganizing state-owned enterprises in Vietnam?
Pursuant to Decree 97/2022/ND-CP issued by the Government on November 29, 2022 introducing policies for redundant employees upon transfer of ownership or rearrangement of wholly state-owned single-member limited liability companies.
In Article 3 of Decree 97/2022/ND-CP, the social insurance policy for redundant employees who were last employed before April 21, 1998 or before April 26, 2002 is as follows:
- Redundant employees whose age is younger than the retirement age by 01 – 05 years, and who has paid social insurance for at least 20 years will receive retirement pension and the following benefits:
+ His/her pension will not be reduced due to early requirement;
+ He/she will receive an allowance equal to 03 months’ salary for each full year;
+ He/she will receive an allowance equal to 0,4 of the average statutory minimum monthly wages for each working year with payment of social insurance contributions.
- Redundant employees whose age is younger than the retirement age by fewer than 01 year, and who has paid social insurance for at least 20 years will receive retirement pension and the following benefits:
+ His/her pension will not be reduced due to early requirement;
+ He/she will receive an allowance equal to 0,2 of the average statutory minimum monthly wages for each working year with payment of social insurance contributions.
- Redundant employees who reach the retirement age but have no more than 06 months of social insurance contribution left to be eligible to receive pension shall have the remaining social insurance contributions paid in lump sum by the State to the pension and death benefit fund in order to be eligible for retirement benefits.
This Decree 97/2022/ND-CP will take effect from January 15, 2023.
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