Cases of Non-eligibility for Seniority Allowance for National Defense Workers and Public Employees

On February 24, 2017, the Government of Vietnam issued Decree 19/2017/ND-CP stipulating the salary policies for defense workers and the seniority allowance policies for defense workers and public employees.

There are three cases in which defense workers and public employees are not entitled to seniority allowances. Specifically, Article 5 of Decree No. 19/2017/ND-CP states clearly that defense workers and public employees who have served in the standing forces of the army for five years (60 months) are entitled to a seniority allowance equivalent to 5% of their current salary, including leadership position allowance and excess seniority allowance (if any). From the sixth year onwards, each additional year is calculated at an added 1%.

The seniority allowance is calculated and paid together with the monthly salary and is used to calculate contributions and benefits for social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance.

The time for calculating the seniority allowance is the period of service in the standing force of the army; the seniority allowance periods in other sectors and professions are accumulated with the period of service in the standing force of the army to calculate the seniority allowance.

In addition, Decree No. 19/2017/ND-CP specifies the cases in which defense workers and public employees are not entitled to the seniority allowance, including:

- The period of personal leave without pay for one month or more;- The period of sick leave or maternity leave exceeding the time limit stipulated by the law on social insurance;- The period of suspension from work or temporary detention to serve investigation, prosecution, and trial.

Decree No. 19/2017/ND-CP took effect from April 15, 2017. The policies in this Decree are applied retrospectively from July 01, 2016.

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