New Points Regarding Salary, Allowances, and Employment of Civil Servants and Public Employees Effective from July 1

 Latest Policies and Documents Regarding Official Public Employees

1. Increase in Retirement Pensions, Social Insurance Allowances, and Monthly Allowances

Decree 44/2019/ND-CP issued by the Government of Vietnam stipulates an increase of 7.19% on the retirement pensions, social insurance allowances, and allowances of June 2019 for 8 groups of individuals, including:

- Vietnamese official and public employee and employees; military personnel, People's Public Security (CAND), and cipher staff who are receiving monthly retirement pensions;

- Officers at communal levels (communes, wards, township) under Decree 92/2009/ND-CP, Decree 121/2003/ND-CP, and Decree 09/1998/ND-CP;

- Individuals receiving monthly loss-of-labor-capacity allowances, and those receiving monthly allowances;

- Communal-level officers receiving monthly allowances under Decision 130/CP and Decision 111-HDBT;

- Military personnel receiving monthly allowances under Decision 142/2008/QD-TTg and Decision 38/2010/QD-TTg;

- People’s Public Security (CAND) receiving monthly allowances under Decision 53/2010/QD-TTg;

- Military personnel, People's Public Security (CAND), and cipher staff receiving retirement pensions similarly to military personnel, CAND, currently receiving monthly allowances under Decision 62/2011/QD-TTg;

- Individuals receiving monthly labor accident and occupational disease allowances.

2. Increase in Actual Received Salary and Allowances

From July 1, 2019, the statutory pay rate is increased to VND 1.49 million/month, thus the actual received salaries and allowances of officials and public employees will increase and be calculated according to the following specific formula:

- Salary amount = Statutory pay rate VND 1,490,000/month x Current salary coefficient;

- Allowance amount = Statutory pay rate VND 1,490,000/month x Current allowance coefficient.

For allowances calculated as a percentage of the current salary plus position allowance and over-frame seniority allowance (if any), the calculation is as follows:

- Allowance amount = [Allowance amount + Position allowance amount (if any) + Over-frame seniority allowance amount (if any)] x Percentage of allowance as per regulation;

- For fixed monetary allowances, keep the current regulation unchanged.

The above contents are based on the regulations in Decree 38/2019/ND-CP and Circular 04/2019/TT-BNV.

3. Increase in Maternity Allowance from July 1, 2019 Onwards

Currently, the statutory pay rate is VND 1.39 million corresponding to a one-time maternity allowance of VND 2.78 million. However, from July 1, 2019, when the statutory pay rate increases to VND 1.49 million as per Decree 38/2019/ND-CP, the maternity allowance will be VND 2.98 million, an increase of VND 200,000 compared to the current rate.

4. Application of New Contract Forms for Public Employees

From July 1, 2019 onwards, new contract forms will be applied in the recruitment and contract signing process with successful public employee candidates.

View details of contract forms at Circular 03/2019/TT-BNV which amends and supplements some provisions on the recruitment of officials and public employees, grade raising for officials, promotion of professional titles for public employees.

5. Conditions for Successful Candidates in Public Employee Promotion Exams

According to Circular 03/2019/TT-BNV, conditions for determining successful candidates in the public employee promotion exams include:

- Must take all the exam papers in all subjects, except those exempted from the exam as per legal regulations;

- Each exam paper score must be 50 points or more (the current regulation is 55 points or more), the exam papers are marked out of 100 points.

6. Appointment and Salary Arrangement for Public Employees Passing the Promotion Exam or Review

Appointment to professional titles for public employees who pass the promotion exam or review has been amended and supplemented in Circular 03/2019/TT-BNV. Specifically:

- For promotion exams or reviews for professional titles equivalent to senior experts: Ministers, Heads of ministerial-level agencies, agencies under the Government of Vietnam, Chairman of the People's Committees of provinces and centrally-run cities based on the decision of successful candidates and the proposal of the competent management authority shall make the appointment decision and salary arrangement for successful public employees after consultation on conditions and standards as regulated by the Ministry of Home Affairs or the Central Organization Commission;

- For promotion exams or reviews from category III to category II, from category IV to category III, follow the regulations at Points b, c Clause 1 Article 15 Circular 12/2012/TT-BNV.

7. Guidelines on Appointment and Salary Arrangement for Officials

According to Clause 4 Article 1 Circular 03/2019/TT-BNV amending, supplementing Article 11 Circular 13/2010/TT-BNV, the classification of grades and salary levels for officials who have working experience with compulsory social insurance contributions upon recruitment shall be implemented in accordance with Circular 79/2005/TT-BNV, Circular 13/2018/TT-BNV, Circular 02/2007/TT-BNV.

Duy Thinh

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