Lump-sum Preferential Allowance Rates for Individuals with Meritorious Service from July 01, 2020 in Vietnam

Draft Decree, which will replace Decree 58/2019/ND-CP, stipulating the levels of allowances and preferential subsidies for people with meritorious services to the revolution in Vietnam is currently open for public comments.

Two options for the application of a lump-sum preferential allowance rates for individuals with meritorious service in Vietnam have been proposed in this Draft. To be specific:

No. Individuals with Meritorious Service Allowance Rate According to Option 1 Allowance Rate According to Option 2
1 One-time allowance upon martyr's death announcement 20 times the base rate 20 times the base rate
Support cost for death announcement 1 time the base rate 1,000,000 VND
2 People's Armed Forces Hero, Labor Hero during the resistance period who died before January 1, 1995 20 times the base rate 20 times the base rate
Vietnamese Heroic Mother, People's Armed Forces Hero, Labor Hero during the resistance period awarded posthumously 20 times the base rate 20 times the base rate
3 Person injured with a labor capacity decrease from 5% to 20%:    
Labor capacity decrease from 5% to 10% 4 times the base rate 4 times the base rate
Labor capacity decrease from 11% to 15% 6 times the base rate 6 times the base rate
Labor capacity decrease from 16% to 20% 8 times the base rate 8 times the base rate
4 Allowance for relatives of persons who participated in revolutionary activities or resistance activities and were imprisoned or exiled by the enemy and died without receiving preferential policies for such activities 1.5 times the base rate 1.5 times the base rate
5 Person active in resistance activities (Allowance calculated based on years of service in resistance) 0.3 times the base rate/year of service 120,000 VND/year of service
6 Meritorious person aiding the revolution awarded the Resistance Medal and meritorious person aiding the revolution within a family awarded the Resistance Medal 1.5 times the base rate 1,000,000 VND
7 Allowance for relatives of persons active in resistance awarded Order, Medal who died before January 1, 1995 1.5 times the base rate 1,000,000 VND
8 Health insurance As prescribed by the law on health insurance As prescribed by the law on health insurance
9 Funeral expenses As prescribed by the law on social insurance As prescribed by the law on social insurance

Thus, lump-sum preferential allowance for individuals with meritorious service, there are differences between the two options in a few cases such as: Support cost for death announcement; Person active in resistance activities (Allowance calculated based on years of service in resistance); Meritorious person aiding the revolution awarded the Resistance Medal and meritorious person aiding the revolution within a family awarded the Resistance Medal; Allowance for relatives of persons active in resistance awarded Order, Medal who died before January 1, 1995. Specifically, in these cases, Option 1 specifies the payment rate based on the base rate, while Option 2 sets a specific amount.

Note: the base rate for determining preferential allowance and subsidy levels for meritorious persons according to both options in this Draft Decree is 1,744,000 VND (currently, this base rate is 1,624,000 VND).

See details of both options in the Draft HERE.

Nguyen Trinh

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