In addition to salaries, officials and public employees are also entitled to receive certain allowances, particularly regional allowances in Vietnam. Below are the calculations for regional allowance amounts for officials and public employees.
Article table of contents
How to Calculate Regional Allowance for Officials and Public Employees in Vietnam? (Illustrative image)
According to Joint Circular 11/2005/TTLT-BNV-BLDTBXH-BTC-UBDT guiding the implementation of regional allowance policies, regional allowances are prescribed in 7 levels: 0.1; 0.2; 0.3; 0.4; 0.5; 0.7 and 1.0 compared to the statutory pay rate.
Note: The 1.0 level is only applicable to particularly difficult and harsh islands such as the Truong Sa archipelago in Khanh Hoa Province.
The amount of the regional allowance is calculated according to the following formula:
| Regional allowance | = | Regional allowance | x | Statutory pay rate |
Where:
- The current statutory pay rate: 1,490,000 VND/month (according to Decree 38/2019/ND-CP).
- Coefficient of regional allowance for each specific area: According to the Appendix issued with Inter-Ministerial Circular 11/2005/TTLT-BNV-BLDTBXH-BTC-UBDT.
Note: On December 27, 2019, in Resolution 86/2019/QH14, the National Assembly assigned the Government of Vietnam to adjust the statutory pay rate from 1.49 million VND/month to 1.6 million VND/month while adjusting pensions, social insurance benefits, monthly allowances as prescribed (subjects guaranteed by the state budget) and preferential allowances for people with revolutionary contributions to be increased by the statutory pay rate from July 1, 2020. However, due to the outbreak of the Covid-19 pandemic, in Conclusion 77-KL/TW on June 5, 2020, and Resolution 122/2020/QH14 on June 19, 2020, the Politburo and the National Assembly unanimously decided not to implement the adjustment of the statutory pay rate for officials and public employees, armed forces from July 01, 2020 until further notice.
Since January 01, 2021, the statutory pay rate for officials and public employees remains at 1.49 million VND/month and does not increase to 1.6 million VND/month until further notice.
For more, see: How is the 2021 statutory pay rate for Vietnamese officials and public employees under the new circumstances?
The regional allowance amount of October 2020 for officials and public employees is calculated as follows:
| Level | Coefficient | Regional allowance amount of October 2020 |
| 1 | 0.1 | 149,000 VND |
| 2 | 0.2 | 298,000 VND |
| 3 | 0.3 | 447,000 VND |
| 4 | 0.4 | 596,000 VND |
| 5 | 0.5 | 745,000 VND |
| 6 | 0.7 | 1,043,000 VND |
| 7 | 1.0 | 1,490,000 VND |
For non-commissioned officers and conscripts in the People’s Army and People’s Public Security of Vietnam, the regional allowance amount is calculated based on the conscription allowance at the rank of Private as follows:
| Regional allowance | = | Regional allowance coefficient | x | Statutory pay rate | x 0.4 |
The regional allowance amount of non-commissioned officers and conscripts in the People’s Army and People’s Public Security of Vietnam of October 2020 is as follows:
| Level | Regional allowance coefficient | Regional allowance amount of October 2020 |
| 1 | 0.1 | 59,600 VND |
| 2 | 0.2 | 119,200 VND |
| 3 | 0.3 | 178,800 VND |
| 4 | 0.4 | 238,400 VND |
| 5 | 0.5 | 298,000 VND |
| 6 | 0.7 | 417,200 VND |
| 7 | 1.0 | 596,000 VND |
Note: According to Joint Circular 11/2005/TTLT-BNV-BLDTBXH-BTC-UBDT, the subjects eligible for regional allowance include:
- Officials, public employees (including reserve officials), those undergoing probation, apprenticeship, and contracted laborers who have been classified according to the salary scale prescribed by the state working in state agencies and public service units established by competent authorities.
- Specialized officials and employees in communes, wards, and commune-level towns.
- Officials and public employees under state payroll and receiving salaries according to the state salary scale assigned to work in associations, non-governmental organizations, projects, and international organizations located in Vietnam.
- Cipher officials working in cipher organizations.
- Officers, professional soldiers, non-commissioned officers, conscripts, workers in the People’s Army and People’s Public Security units.
- Workers in companies operating under the Law on State Enterprises, the Development Assistance Fund, and the Vietnam Deposit Insurance, including:
+ Full-time members of the Board of Directors; members of the Supervisory Board;
+ General Directors, Directors, Deputy General Directors, Deputy Directors, Chief Accountants (excluding General Directors, Directors, Deputy General Directors, Deputy Directors, Chief Accountants working under labor contracts);
+ Workers, direct production and business employees; specialized public employees, administrative employees working under policies of labor contracts as prescribed in Decree 44/2003/ND-CP dated May 9, 2003, of the Government of Vietnam guiding the implementation of several articles of the Labor Code concerning labor contracts.
- Retirees, those resigning due to loss of working capacity, labor accidents, occupational diseases receiving monthly allowances instead of salaries.
- War invalids (including type B war invalids, beneficiaries of policies like war invalids), sick soldiers receiving monthly allowances who are not salary earners or social insurance beneficiaries.
Only the subjects listed above are eligible for regional allowance.
Le Vy
- Key word:
- official
- public employee
- Vietnam
- Regional Allowance
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