Which labor, salary and social insurance policies will officially take effect from January 2023 in Vietnam?

Which labor, salary and social insurance policies will officially take effect from January 2023 in Vietnam?

Circular No. 14/2022/TT-NHNN stipulating codes, criteria and professional standards and salary classification for the ranks of specialized banking civil servants.

According to this Circular, the appointment and salary classification into the ranks of specialized banking civil servants specified in this Circular must be based on the job position, responsibilities, tasks and professional skills of the civil servant in Vietnam.

When changing rank from the rank of civil servant currently held to the rank of specialized civil servant in banking as prescribed in this Circular, it is not allowed to combine the salary increase or increase the rank of civil servant.

At the same time, in Article 10 of Circular No. 14/2022/TT-NHNN, it also clearly stipulates salary ranking of banking civil servants as follows:

1. The ranks of specialized banking civil servants specified in this Circular shall apply Table 2 (Professional and professional salary table for cadres and civil servants in state agencies) promulgated together with Decree No. 204 /2004/ND-CP dated December 14, 2004 of the Government on the salary regime for cadres, civil servants, public employees and the armed forces (amended and supplemented) as follows:

a) The rank of Senior Controller of the Bank applies the salary scale of civil servants grade A3, group 1 (A3.1), from salary coefficient 6.20 to salary coefficient 8.00;

b) The rank of Chief Controller of the bank applies the salary scale of civil servants grade A2, group 1 (A2.1), from salary coefficient 4.40 to salary coefficient 6.78;

c) The rank of Bank Controller applies the salary scale for civil servants grade A 1, from the salary coefficient 2.34 to the salary coefficient 4.98;

d) The storekeeper and bank cashiers shall apply the salary table of the civil servants grade A0, from the salary coefficient 2.10 to the salary coefficient 4.89;

dd) Employee level Currency - Treasury applies the salary scale of class B civil servants, from salary coefficient 1.86 to salary coefficient 4.06.

2. The change of salary ranking for civil servants from the ranks of specialized civil servants currently held to the ranks of specialized banking civil servants specified in this Circular shall comply with the guidance in Clause 2, Section II of Circular No. 02/2007 /TT-BNV dated May 25, 2007 of the Ministry of Home Affairs guiding salary grading when raising ranks, changing ranks, changing types of civil servants and public employees.

Circular 14/2022/TT-NHNN takes effect from January 1, 2023.

What are regulations on collection of trade union fees in Vietnam?

Pursuant to subsection 2, Section I of the Regulation promulgated together with Decision 5440/QD-TLD in 2022, stipulating the general principles when developing and delivering the trade union financial estimate in 2023 as follows:

- The trade union fee of 2% is calculated on the total salary of the employees who are required to pay social insurance premiums according to the provisions of the law on social insurance. Therefore, the basis for determining the salary fund to pay trade union dues of 2% in 2023 at the units is calculated on the average salary paid for social insurance in the first 6 months of 2022 at the unit multiplied by the number of employees. Employees who are subject to payment of social insurance premiums according to the provisions of the law on social insurance.

- Trade union fees are collected on the number of trade union members according to the salary and salary allowance in each region and according to Decision No. 1908/QD-TLD dated December 19, 2016 of the Vietnam General Confederation of Labor.

What is adjustment to increase occupational incentive allowances for preventive medicine and grassroots health cadres in Vietnam?

Pursuant to the provisions of Clause 1, Article 3 of Resolution 69/2022/QH15, providing for implementation of the salary policy as follows:

1. The overall reform of the salary policy has not yet been implemented according to Resolution No. 27-NQ/TW dated May 21, 2018 of the Seventh Conference of the 12th Central Executive Committee in 2023. From July 1 in 2023, increase the base salary for cadres, civil servants and public employees to 1.8 million VND/month; increase pensions and social insurance allowances by 12.5% ​​for subjects guaranteed by the state budget and provide additional support for those who retire before 1995 with low benefits; increase the standard of allowance for people with meritorious services to ensure not lower than the standard of poor households in urban areas and increase 20.8% of spending on social security policies that are attached to the base salary. From January 1, 2023, make adjustments to increase occupational incentive allowances for preventive medicine and grassroots health workers according to Conclusion No. 25-KL/TW dated December 30, 2021 of the Politburo.

According to this Article, from January 1, 2023, the allowance for occupational incentives for preventive medicine and grassroots health workers will be adjusted according to the Politburo's Conclusion 25-KL/TW in 2021 in Vietnam.

What is process of settling one-time social insurance benefits with application of digital signature authentication integrated in mobile devices in Vietnam?

Pursuant to the provisions of Article 2 of the promulgation process attached to Decision 3612/QD-BHXH in 2022, then:

1. The employee is a one-time social insurance beneficiary who has been granted a social insurance book according to the provisions of Decision No. 1188/QD-BHXH dated May 24, 2022 of the General Director of Vietnam Social Insurance, as amending, adding a number of articles to the process of collecting social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance; managing social insurance books and health insurance cards issued together with Decision No. 595/QD-BHXH dated April 14, 2017 and Decision No. 505/QD-BHXH dated March 27, 2020 of the General Director Vietnam Social Security, having an account on the National Public Service Portal and a digital signature integrated in the mobile application, is required to carry out administrative procedures on the Public Service Portal.

Article 4 Procedures promulgated together with Decision 3612/QD-BHXH in 2022 stipulates declaration and submission of documents according to which:

1. Employees fully and accurately declare information according to Form No. 14A-HSB provided on the Public Service Portal , digitally sign Form No. 14A-HSB, upload electronic documents or cite sources documents from the Electronic Data Management Warehouse of individuals and submit documents on the Public Service Portal.

Employees are not required to declare and return data, records and papers already in the database managed by the social insurance agency or which have been digitized, stored, connected and shared by the competent authority information with the Public Service Portal, an electronic one-stop information system.

After the employee has performed the activities above, the process of receiving documents is then processing, making a list of payments and making payments.

What is policy for redundant employees when changing ownership or rearranging single-member limited liability companies in which 100% of charter capital is held by the State in Vietnam? 

According to Article 3 and Article 4 of Decree No. 97/2022/ND-CP stipulating policies for redundant employees who are recruited before April 21, 1998 or April 26, 2002 and policies for redundant employees who are recruited from April 21, 1998 or April 26, 2002 onwards, according to which:

Article 3. Policies for redundant employees who are recruited before April 21, 1998 or April 26, 2002

A redundant employee prescribed in Point a or Point b Clause 1 Article 2 of this Decree is entitled to the following benefits:

1. A redundant employee whose age is younger than the retirement age prescribed in Clause 2 Article 169 of the Labour Code and Article 4 Decree No. 135/2020/ND-CP dated November 18, 2020 prescribing retirement ages (hereinafter referred to as “Decree No. 135/2020/ND-CP”) by 01 – 05 years, and who has paid social insurance for at least 20 years will receive retirement pension and the following benefits:

a) His/her pension will not be reduced due to early requirement;

b) He/she will receive an allowance equal to 03 months’ salary for each full year (i.e. 12 months, excluding incomplete month), of early retirement determined according to the retirement age prescribed in Clause 2 Article 169 of the Labour Code and Article 4 Decree No. 135/2020/ND-CP;

c) 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.

2. A redundant employee whose age is younger than the retirement age prescribed in Clause 2 Article 169 of the Labour Code and Article 4 Decree No. 135/2020/ND-CP by fewer than 01 year, and who has paid social insurance for at least 20 years will receive retirement pension and the following benefits:

a) His/her pension will not be reduced due to early requirement;

b) 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.

3. A redundant employee who reaches the retirement age prescribed in Clause 2 Article 169 of the Labour Code and Article 4 Decree No. 135/2020/ND-CP but has 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. Total amount of social insurance contributions paid by the State equals the amount of social insurance contributions paid to the pension and death benefit fund by both employer and employee for the month preceding the month in which the employee quits his/her job multiplied by the number of required social insurance contribution months.

4. If a redundant employee prescribed in Point a Clause 1 Article 2 of this Decree is not eligible to receive the benefits prescribed in Clauses 1, 2 and 3 of this Article, he/she will terminate the signed employment contract and receive the following benefits:

a) The redundancy allowance prescribed in Article 47 of the Labour Code and Clause 2 Article 8 of the Government’s Decree No. 145/2020/ND-CP dated December 14, 2020 eLabourating on some Article of the Labour Code concerning working conditions and Labour relations (hereinafter referred to as “Decree No. 145/2020/ND-CP”);

b) He/she will receive an allowance equal to 0,05 of the average statutory minimum monthly wages for each working year at the rearranged enterprise.

5. If a redundant employee prescribed in Point b Clause 1 Article 2 of this Decree is not eligible to receive the benefits prescribed in Clauses 1, 2 and 3 of this Article, he/she will terminate the signed employment contract and receive the following benefits:

a) The severance pay prescribed in Article 46 of the Labour Code and Clause 1 Article 8 of the Government’s Decree No. 145/2020/ND-CP;

b) He/she will receive an allowance equal to 0,2 month’s salary for each working year at the rearranged enterprise.

Article 4. Policies for redundant employees who are recruited from April 21, 1998 or April 26, 2002 onwards

A redundant employee prescribed in Point c or Point d Clause 1 Article 2 of this Decree is entitled to the following benefits:

1. The redundancy allowance prescribed in Article 47 of the Labour Code and Clause 2 Article 8 of the Government’s Decree No. 145/2020/ND-CP shall be paid to an employee of the rearranged enterprise prescribed in Clauses 1, 2, 3 and 4 Article 1 of this Decree.

2. The severance allowance prescribed in Article 46 of the Labour Code and Clause 1 Article 8 of the Government’s Decree No. 145/2020/ND-CP shall be paid to an employee of the rearranged enterprise prescribed in Clause 5 Article 1 of this Decree.

Policies for redundant employees who were last recruited from April 21, 1998 or April 26, 2002 or later shall comply with Article 4 of Decree No. 97/2022/ND-CP in Vietnam.

Decree 97/2022/ND-CP takes effect from January 15, 2023 in Vietnam.

Best Regards!