Increasing the Monthly Allowance for Aged and Retired Commune, Ward, and Town Officials Effective from July 01, 2023
Increasing Monthly Allowance for Commune, Ward, and Commune-level Town Officers Who Are Elderly and Retired from July 1, 2023?
On August 1, 2023, the Ministry of Home Affairs issued Circular 11/2023/TT-BNV providing guidance on adjusting the monthly allowance for elderly retired commune, ward, and commune-level town officers.
From July 1, 2023, the adjustment of the monthly allowance for elderly retired commune officers is implemented in accordance with the provisions of Article 2 of Decree No. 42/2023/ND-CP dated June 29, 2023, of the Government of Vietnam, which adjusts pensions, social insurance allowances, and monthly allowances as stipulated in Article 2 of Circular 11/2023/TT-BNV.
Adjustment of Monthly Allowance
From July 1, 2023, the monthly allowance for elderly retired commune officers is adjusted according to the provisions of Article 2, Decree No. 42/2023/ND-CP dated June 29, 2023, of the Government of Vietnam, which adjusts pensions, social insurance allowances, and monthly allowances as follows:
1. Increase the monthly allowance by 12.5% on the allowance enjoyed as of June 2023 for subjects specified in Article 1 of this Circular.
The monthly allowance from July 1, 2023, is calculated according to the following formula:
Monthly allowance = Allowance in June 2023 x 1.125
Where: The allowance enjoyed as of June 2023 is the allowance specified in Clause 3, Article 2 of Circular No. 02/2022/TT-BNV dated January 29, 2022, of the Minister of Home Affairs, guiding the adjustment of the monthly allowance from January 1, 2022, for retired commune, ward, and commune-level town officers according to Decision No. 130-CP dated June 20, 1975, of the Council of the Government of Vietnam and Decision No. 111-HDBT dated October 13, 1981, of the Council of Ministers.
2. From July 1, 2023, after adjusting the monthly allowance for elderly retired commune officers pursuant to Clause 1 of this Article, if the allowance is less than 3,000,000 VND/month, it is increased as follows:
a) Increase by 300,000 VND/person/month for those with a monthly allowance below 2,700,000 VND/person/month;
b) Increase to 3,000,000 VND/person/month for those with a monthly allowance from 2,700,000 VND/person/month to under 3,000,000 VND/person/month.
3. Under the provisions of Clauses 1 and 2 of this Article, the monthly allowance for elderly retired commune officers from July 1, 2023 (rounded), is as follows:
a) For former officers who were Secretary of the Communist Party Committee, Chairman of the People's Committee, Deputy Secretary, Deputy Chairman, Standing members of the Communist Party Committee, Secretary members of the People's Committee, Secretary of the People's Council, Commune Military Chief, and Commune Police Chief: 3,000,000 VND/month;
b) For other positions: 2,817,000 VND/month.
Accordingly, the old monthly allowance specified in Article 2 of Circular 2/2022/TT-BNV is as follows:
Adjustment of Monthly Allowance
From January 1, 2022, the monthly allowance for elderly retired commune officers is adjusted in accordance with Article 2 of Decree No. 108/2021/ND-CP dated December 7, 2021, of the Government of Vietnam, which adjusts pensions, social insurance allowances, and monthly allowances as follows:
1. Increase the monthly allowance by 7.4% on the allowance enjoyed as of December 2021 according to the following formula:
Monthly allowance = Allowance in December 2021 x 1.074
Where: The allowance enjoyed as of December 2021 is the allowance specified in Clause 2, Article 2 of Circular No. 09/2019/TT-BNV dated June 14, 2019, of the Minister of Home Affairs guiding the adjustment of the monthly allowance from July 1, 2019, for retired commune officers pursuant to Decision No. 130-CP dated June 20, 1975, of the Council of the Government of Vietnam and Decision No. 111-HDBT dated October 13, 1981, of the Council of Ministers.
2. The monthly allowance for elderly retired commune officers, after adjustment under Clause 1 of this Article, if it is lower than 2,500,000 VND/month, is increased as follows:
a) Increase by 200,000 VND/person/month for those with a monthly allowance below 2,300,000 VND/person/month;
b) Increase to 2,500,000 VND/person/month for those with a monthly allowance from 2,300,000 VND/person/month to under 2,500,000 VND/person/month.
3. Under the provisions of Clauses 1 and 2 of this Article, the monthly allowance from January 1, 2022 (rounded), for elderly retired commune officers is as follows:
a) For former officers who were Secretary of the Communist Party Committee, Chairman of the People's Committee: 2,473,000 VND/month;
b) For former officers who were Deputy Secretary, Deputy Chairman, Standing members of the Communist Party Committee, Secretary members of the People's Committee, Secretary of the People's Council, Commune Military Chief, and Commune Police Chief: 2,400,000 VND/month;
c) For other positions: 2,237,000 VND/month.
Under this provision, from January 1, 2022, the monthly allowance for elderly retired commune officers increases by 7.4% on the allowance enjoyed as of December 2021.
Thus, compared to the old monthly allowance, the monthly allowance increases by 12.5%.
Additionally, there is an increase of 300,000 VND/person/month for those with a monthly allowance below 2,700,000 VND/person/month.
The allowance increases to 3,000,000 VND/person/month for those with a monthly allowance from 2,700,000 VND/person/month to under 3,000,000 VND/person/month.
The monthly allowance (rounded) for former officers such as the Secretary of the Communist Party Committee, Chairman of the People's Committee, Deputy Secretary, Deputy Chairman, Standing members of the Communist Party Committee, Secretary members of the People's Committee, Secretary of the People's Council, Commune Military Chief, and Commune Police Chief: 3,000,000 VND/month;
For other positions: 2,817,000 VND/month.
Increase the monthly allowance for commune, ward, and commune-level town officers who are elderly and retired from July 1, 2023 (Image from the Internet)
Who is Eligible for the Increased Monthly Allowance?
Article 1 of Circular 11/2023/TT-BNV stipulates the eligible candidates for the increased monthly allowance, including:
Elderly retired commune, ward, and commune-level town officers currently receiving monthly allowances according to Decision No. 130-CP of 1975 of the Council of the Government of Vietnam, which supplements policies for commune officers, and Decision No. 111-HDBT dated October 13, 1981, of the Council of Ministers, which amends and supplements several policies for commune officers (hereinafter referred to as elderly retired commune officers).
When Does the Policy of Increasing Monthly Allowance Take Effect?
Article 4 of Circular 11/2023/TT-BNV stipulates the effective date as follows:
Effective Date
1. This Circular takes effect from September 15, 2023.
2. The regime stipulated in this Circular is implemented from July 1, 2023.
3. This Circular replaces Circular No. 02/2022/TT-BNV dated January 29, 2022, of the Minister of Home Affairs, guiding the adjustment of the monthly allowance from January 1, 2022, for retired commune, ward, and commune-level town officers according to Decision No. 130-CP dated June 20, 1975, of the Council of the Government of Vietnam and Decision No. 111-HDBT dated October 13, 1981, of the Council of Ministers.
Thus, Circular 11/2023/TT-BNV takes effect on September 15, 2023. However, the policies stipulated in this Circular are implemented from July 1, 2023.
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