07/10/2022 11:38

Vietnam: Instructions for calculating monthly salary to enjoy the payroll downsizing benefit for civil servants and public employees

Vietnam: Instructions for calculating monthly salary to enjoy the payroll downsizing benefit for civil servants and public employees

On July 28, 2022, the Ministry of Home Affairs of Vietnam issued Official Dispatch 3538/BNV-TCBC on the calculation of benefits to the regime and the policy of downsizing the payroll. In particular, there are instructions for calculating monthly salary to enjoy the payroll downsizing benefits as follows:

The monthly salary for calculating the downsizing salary benefits shall follow the provisions of Clauses 1 and 2 of Article 12 of Decree 108/2014/ND-CP.

Article 12. Allowance calculation methodologies

1. For this Decree, monthly salary includes: rank-based salary or position-based salary or schedule of salary; allowances for positions, extra-seniority or occupational seniority (if any) and differences in reserved allowances (if any) under applicable laws.

2. The monthly salary for calculating allowances specified in Article 8; point b, clause 1 of Article 9; point b of clause 1 , and point d of clause 2, Article 10 hereof shall be the average net monthly salary of the last 5 working years prior to the downsizing. For those work for under 05 years, their monthly salary for calculating allowances shall be the net monthly salary of the whole working duration.

As for how to calculate a monthly salary to calculate the payroll streamlining benefits, the following procedures are applied:

- For the subjects specified in Clauses 1, 2, 3, and 6 of Article 2 of Decree 108/2014/ND-CP, downsizing the payroll

Salary according to ranks, grades, positions, and titles; allowances for leadership positions; seniority beyond the bracket; The seniority allowance and the difference in salary reservation shall follow Circular 04/2014/TT-BNV dated May 25, 2014.

- For the subjects of downsizing specified in Clauses 4 and 2 of Article 2 of Decree 108/2014/ND-CP:

+ Prior to May 1, 2013, the salary coefficient was calculated using the salary table of full-time Board of Directors members; the salary table of the General Director, Director, Deputy General Director, and Deputy Director Chief Accountant promulgated in conjunction with Decree 205/2004/ND-CP stipulating the coefficient of salary scale, salary table, and salary allowance benefits in government companies.

+ From May 1, 2013 onwards, the salary coefficient is calculated according to the provisions of the table of salary coefficients of the full-time managerial staff, promulgated together with Decree 51/2013/ND-CP stipulating the salary, remuneration, and bonus benefits for members of the Members' Council or the company's president, controller, general director or director, deputy general director or deputy director, and accountants. The head of a one-member limited liability company owned by the State.

In addition, the Official Dispatch also guides some content, such as:

- Regrading the management and use of payroll has been downsizing: follow the provisions of Clause 1 of Article 1 of Decree 113/2018/NĐ-CP.

- Regarding the subject of downsizing due to poor health: follow the provisions of Clause 1, Article 1 of Decree 143/2020/ND-CP.

- Regarding time to calculate the downsizing of payroll benefits: follow the provisions of Clause 8, Article 1 of Decree 113/2018/ND-CP

- Regarding the policy of early retirement: follow the provisions of Clause 2, Article 1 of Decree 143/2000/ND-CP and Document 4126/BNV-TCBC dated August 24, 2021 of the Ministry of Home Affairs on determining the age to enjoy the retirement policy before the age specified in Decree 143/2020/ND-CP (attached).

- Regarding the policy of transferring to work at organizations without a salary from the state budget: follow the provisions of Clause 1, Article 9 of Decree 108/2014/ND-CP.

- Regarding the policy of immediate severance: follow the provisions of Clause 4, Article 1 of Decree 143/2020/ND-CP.

- Regarding the policy of severance after vocational training: follow the provisions of Clause 2, Article 10 of Decree 108/2014/ND-CP.

- Regarding policies for those who quit a leadership position or are appointed or elected to another position with a lower allowance for the new leadership position due to organizational arrangement: follow the provisions of Article 11 of Decree No. 108/2014/ND-CP.

- Regarding funding sources, budget compliance, and settlement: Follow the guidance in the Minister of Finance's Circular 31/2014/TT-BTC dated June 5, 2014 guiding the determination of funding sources; the estimation, management, use, and finalization of funds for the implementation of the downsizing policy (amended and supplemented in Circular 117/2021/TT-BTC dated December 21, 2021).

Official Dispatch 3538/BNV-TCBC issued on July 28, 2022.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

Nhu Y
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