Vietnam: Funding sources for payment of allowances and benefits for officials and public employees at public rehabilitation centers

Vietnam: Funding sources for payment of allowances and benefits for officials and public employees at public rehabilitation centers - Illustrative photo

According to Article 2 of Circular 05/2016/TT-BLDTBXH, the funding sources for the payment of allowances and benefits in Vietnam are regulated as follows:

For public service providers that fully self-cover recurrent expenditures and those that fully self-cover both recurrent expenditures and investment expenditures:

The funding for the payment of allowances and benefits is covered by the provider’s revenue.

For public service providers partially covering their own recurrent expenditures:

The funding for payment of allowances and benefits is covered by the provider's professional revenue, service provision, production labor; state budget according to the current budget management decentralization and other lawful funding sources (if any).

For public service providers whose recurrent operational costs are covered by the state budget:

The funding for payment of allowances and benefits is covered by the state budget in the provider’s annual budget estimates according to the current budget management decentralization and other lawful funding sources as regulated by law.

If the State adjusts the statutory pay rate, additional funding for payment of job-based preferential allowances will follow the current regulations of the State appropriate to each period. Specifically for 2016, Ministries, central authorities, and local authorities are responsible for organizing, guiding, reviewing, and compiling reports on the needs and funding sources for payment of job-based preferential allowances into the needs for implementing salary reform according to the guidance on determining needs and funding sources for the statutory pay rate adjustment in 2016 and submitting them to financial authorities for consideration and appraisal as regulated.

Detailed regulations can be found in Circular 05/2016/TT-BLDTBXH effective from June 15, 2016.

Le Vy

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