How to calculate the region-based allowance levels for officials and public employees? Who is eligible for region-based allowance in Vietnam?
Who is eligible for region-based allowance in Vietnam?
Pursuant to Clause 3, Article 6 of Decree 204/2004/ND-CP regulating salary allowances:
Salary allowance regimes
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3. Regional allowance:
Applicable to the persons who work in remote and isolated areas and areas affected by bad weather conditions.
The allowance consists of seven levels of 0.1, 0.2, 0.3, 0.4, 0.5, 0.7 and 1.0 on the basis of the general minimum salary level. As for non-commissioned officers and soldiers on military service in the armed forces, regional allowance is computed on the basis of the allowance for privates.
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In addition, Section 1 of Joint Circular 11/2005/TTLT-BNV-BLDTBXH-BTC-UBDT stipulates the scope and subjects of application of the region-based allowance regime:
SCOPE AND SUBJECTS OF APPLICATION:
1. Cadres, public servants (including public servants on probation), officials, employees in time of internship or probationary and employees under contract, who have been ranked salary according to salary tables as prescribed by State, are working in State bodies and non-business units of State established under decision of competent authorities.
2. Full-time cadres and public servants in communes, wards and townships.
3. Cadres, public servants and officials on the State’s payroll and enjoying salary according to the salary tables provided for by the State, being assigned to work for international non-governmental associations and organizations, Vietnam-based international projects, agencies and organizations.
4. Persons in charge of cipher in cipher organizations.
5. Professional officers and soldiers, non-commissioned officers, soldiers and workers in agencies and units of People’s Army and People’s Public Security.
6. Employees in companies operating under Law on State-owned enterprises, fund for development support and Vietnam Deposit Insurance (hereinafter collectively referred to as State-owned companies), including:
a) Full-time members of Board of Directors; members of Control Board.
b) General Directors, Directors, Deputy General Directors, Deputy Directors, Chief accountant (excluding those working under contract).
c) Workers, officers directly producing, trading; public employees in charge of professional operations and executive staff, employees in service working under regime of labor contract specified in the Government’s Decree No. 44/2003/ND-CP dated May 09, 2003, detailing and guiding the implementation of a number of articles of the labor code regarding labor contracts.
7. Those who retire or quit due to loss of labor power, labor incident, occupational illness enjoying monthly subsidies in lieu of salary.
8. Invalids (including invalids classified in B type, persons enjoying policy as invalids), diseased soldiers enjoying monthly subsidies other than persons enjoying salary, social insurance regimes.
Thus, the subjects entitled to region-based allowances are those working in remote, remote and bad-climate places, including:
- Cadres, public servants (including public servants on probation), officials, employees in time of internship or probationary and employees under contract, who have been ranked salary according to salary tables as prescribed by State, are working in State bodies and non-business units of State established under decision of competent authorities.
- Full-time cadres and public servants in communes, wards and townships.
- Cadres, public servants and officials on the State’s payroll and enjoying salary according to the salary tables provided for by the State, being assigned to work for international non-governmental associations and organizations, Vietnam-based international projects, agencies and organizations.
- Persons in charge of cipher in cipher organizations.
- Professional officers and soldiers, non-commissioned officers, soldiers and workers in agencies and units of People’s Army and People’s Public Security.
- Employees in companies operating under Law on State-owned enterprises, fund for development support and Vietnam Deposit Insurance (hereinafter collectively referred to as State-owned companies), including:
+ Full-time members of Board of Directors; members of Control Board.
+ General Directors, Directors, Deputy General Directors, Deputy Directors, Chief accountant (excluding those working under contract).
+ Workers, officers directly producing, trading; public employees in charge of professional operations and executive staff, employees in service working under regime of labor contract specified in the Government’s Decree No. 44/2003/ND-CP dated May 09, 2003, detailing and guiding the implementation of a number of articles of the labor code regarding labor contracts.
- Those who retire or quit due to loss of labor power, labor incident, occupational illness enjoying monthly subsidies in lieu of salary.
- Invalids (including invalids classified in B type, persons enjoying policy as invalids), diseased soldiers enjoying monthly subsidies other than persons enjoying salary, social insurance regimes.
How to calculate the region-based allowance levels for officials and public employees? Who is eligible for region-based allowance in Vietnam?
What are the principles to define the region-based allowances in Vietnam?
In Subsection 1, Section 2, Joint Circular 11/2005/TTLT-BNV-BLDTBXH-BTC-UBDT stipulates the principles to define the region-based allowances as follows:
- Elements to define the region-based allowances:
Natural geographical elements such as: a bad climate, which is shown through the severity of temperature, humidity, height, air pressure, wind speed, … higher or lower than normal conditions, affecting to human health;
a remote and isolated place (sparse population density, a far distance from cultural, political and economical centers, remote from the mainland…), roads, bridges, schools, medical establishments, trading services are inferior, difficulties for travel, affecting the material and mental life of people;
Besides that, when defining the region-based allowances, elements as special difficulties, border, island, muddy areas may be considered additionally.
- The region-based allowances are prescribed essentially according to administrative boundaries of communes, wards and townships (collectively referred to as communes). Agencies, units, state-owned companies located on geographical area of a commune shall be enjoyed under the region-based allowance prescribed for such commune. Some special cases where they are located in a far distance from people’s residence, or bordering with many communes, they may be considered for prescribing a separate region-based allowance.
- When elements used for defining the region-based allowances or geographical area of communes change (division, merge, new establishment…), region-based allowances shall be defined or re-adjusted for conformity.
What are the region-based allowance levels for officials and public employees in Vietnam?
Pursuant to Subsection 2, Section 2, Joint Circular 11/2005/TTLT-BNV-BLDTBXH-BTC-UBDT stipulates region-based allowance levels:
- The prescribed region-based allowances include 7 levels: 0.1; 0.2; 0.3; 0.4; 0.5; 0.7 and 1.0 in comparison with the common minimum wage.
A region-based allowance will be calculated under the following formula:
Region-based allowance | = | Region-based allowance coefficient | x | Common minimum wage |
The current common minimum wage is the statutory pay rate. The applicable statutory pay rate is 1,800,000 VND/month.
Note: 1.0 will apply to islands which are specially difficulty and arduous such as Truong Sa archipelago under Khanh Hoa province.
- For non-commissioned officers and soldiers fulfilling the military obligation under People’s Army and People’s Public Security, the region-based allowances will be calculated in comparison with the allowance of second infantry according to the following formula:
Region-based allowance | = | Region-based allowance coefficient | x | Common minimum wage | x 0.4 |
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