04 New Regulations That Officials Cannot Ignore in 2019

1. Requirement for officials to declare assets and income

This is a new regulation mentioned in the Anti-Corruption Law 2018, which takes effect from July 1, 2019. The subjects required to declare assets include officials, police and military officers, professional soldiers, and some others.

Persons obliged to declare their assets, income, and changes in their assets and income, including those of their spouses and minor children, according to the Anti-Corruption Law 2018.

To be specific: the types of assets and income required to be declared include:

- Land use rights, houses, construction works, and other assets attached to land, houses, construction works;- Precious metals, gemstones, cash, valuable papers, and other movable property, each asset valued at 50,000,000 VND or more;- Assets and accounts abroad;- Total income between two declarations.

View detailed content at Anti-Corruption Law 2018 effective from July 1, 2019.

2. Increase in monthly actual salary and allowances

As known, from July 1, 2019, the statutory pay rate of officials will increase from 1.39 million VND/month to 1.49 million VND/month, which means that salaries and allowances calculated according to the statutory pay rate of officials will be increased.

3. Increase in social insurance contributions

Based on Clause 1, Article 85 of the Social Insurance Law 2014, the social insurance contributions of officials are stipulated as follows:

Social insurance contribution amount = (Salary + allowances calculated according to the statutory pay rate) x 8%.

From July 1, 2019, with the statutory pay rate increasing from 1.39 million VND/month to 1.49 million VND/month, the social insurance contributions of officials will also increase accordingly.

4. Increase in monthly pension

According to Clause 2, Article 56 of the Social Insurance Law 2014, the monthly pension is 45% of the average monthly salary on which social insurance contributions were based, corresponding to the number of years of social insurance contributions as follows:

- Male employees retiring in 2018 have 16 years, 2019 have 17 years, 2020 have 18 years, 2021 have 19 years, and from 2022 onwards have 20 years;- Female employees retiring from 2018 onwards have 15 years.

After that, each additional year adds 2%; the maximum is 75%. If retiring before the statutory age, each year of early retirement reduces the pension by 2%.

From July 1, 2019, as the monthly salary on which social insurance contributions are based increases, the monthly pension of officials will also significantly increase.

Duy Thinh

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