Vietnam: Funding sources for payment of hardship allowances

Vietnam: Funding sources for payment of hardship allowances (Illustration image)

Circular 88/2008/TT-BTC stipulates the funding sources for payment of hardship allowances in Vietnam as follows:

- Ministries, and central and local authorities in Vietnam use the remaining part of funds obtained for salary reform after covering expenditures to ensure the funding for payment of hardship allowances.

- In case the funding source is smaller than the financial needs, the central budget will cover the shortfall for Ministries, and central and local authorities to ensure sufficient funding for payment of hardship allowances.

- In case the funding source is larger than the financial needs, ministries, central and local authorities will ensure the funds themselves. The remaining part will be used for implementing newly increased salary policies in 2009 when the State continues to issue; this remaining part is not used for other purposes.

- In special cases, ministries, central and local authorities reporting a large surplus after covering expenditures for salary reform according to the roadmap shall report to the Ministry of Finance for consideration and resolution according to prescribed policies.

- The funding for payment of hardship allowances for staffed officials and employees in the trade union system at all levels shall include 2% of trade union funding; not aggregated into the funding for payment of hardship allowances of Ministries, central and local authorities.

- The funding for payment of hardship allowances for the Vietnam Social Security system shall be covered by the growth interest according to regulations.

- The funding for payment of hardship allowances for employees in agencies and units that have implemented package spending, for which the decision allowing package spending by the competent authority has stipulated that during the package period, the unit shall self-arrange within the package to ensure new policies (such as Tax and Customs authorities, State Treasury, Vietnam Television, etc.), these agencies and units must self-cover the funding themselves within the total package allocated to implement the allowance policies.

More details may be found in Circular 88/2008/TT-BTC effective on November 13, 2008.

Ngoc Tai

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