Translation:On February 24, 2017, the Government of Vietnam issued Decree 19/2017/ND-CP prescribing salary policies for defense workers (CNQP) and seniority allowance policies for defense public employees (VCQP). This Decree takes effect from April 15, 2017, but the prescribed policies are implemented from July 1, 2016. The Decree covers numerous provisions; however, within the scope of this document, we will only address the new points regarding salary policies and allowance policies for CNQP and VCQP.
Article table of contents
First, regarding the scope and subjects of application, the policies specified in this decree do not differentiate between Defense Industry Workers (CNQP) and Defense Official Workers (VCQP) who are working in, or affiliated with, either budgetary units or enterprises, public service providers. The subjects of application are CNQP and VCQP as stipulated in Clause 2, Clause 3, Article 3 of the Law on Professional Soldiers and Defense Officials (QNCN), workers, and VCQP.
Currently, in units, enterprises, and public service providers, many people are still VCQP workers. Therefore, they need the competent authority’s decision to be converted to CNQP or new VCQP to be eligible for the policies specified in Decree 19/2017/ND-CP (note: the target audience does not include defense officials managed by official management agencies).
From before to July 1, 2016, CNQP did not have a separate salary scale. Most of the CNQP salary scales were applied as per the salary scales specified in Decree 205/2004/ND-CP dated December 14, 2004, of the Government of Vietnam. Now, according to the stipulations in Decree 19/2017/ND-CP, CNQP has a separate salary scale. The CNQP salary scale features basic salary levels similar to those of QNCN but typically one level lower for all types and groups of CNQP salaries.
Regarding the salary conversion for CNQP from the old salary scale to the new salary scale, it is necessary to wait for specific guidance circulars from the Ministry of Defense. However, the salary conversion must adhere to the principle of assigning appropriate salary rates based on the job position and professional qualification required by the job position. Therefore, for cases where salary assignments were incorrectly made in the past, the new salary must ensure conformity and the method of salary determination based on social insurance contribution periods.
If the new salary coefficient combined with seniority allowance (if any) is lower than the current salary coefficient plus seniority allowance (if any) and defense and security service allowance, the difference will be retained. The maintained difference decreases gradually as salary levels are raised.
Previously, CNQP and VCQP did not receive seniority allowances. Under Decree 19/2017/ND-CP, CNQP and VCQP will receive seniority allowances (professional seniority) from the time they become CNQP and VCQP. The seniority allowance regime only applies to CNQP and VCQP working from July 1, 2016, onward. CNQP and VCQP who ceased working or are no longer CNQP, VCQP before July 1, 2016, are not eligible for the seniority allowance policies.
The seniority allowance for CNQP, VCQP is implemented as follows: CNQP, VCQP who have served in the regular military force for a full 5 years (60 months) are eligible for a seniority allowance of 5% of the currently received salary plus position leadership allowance and excess seniority allowance (if any). For each subsequent year (12 months), the seniority allowance increases by 1%.
The seniority allowance is paid along with monthly salary and is included in calculations for social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance benefits. The calculation period for seniority allowance includes: Time served in the regular military force; time of enjoying seniority allowance in other sectors, which is accumulated with time served in the regular military force for seniority allowance calculation.
Periods not included for seniority allowance calculation are: Periods of unpaid leave for 1 month or longer; periods of sick leave or maternity leave exceeding the statutory limit on social insurance benefits; periods of work suspension or detention for investigation, prosecution, or trial.
From July 1, 2016, CNQP adhering to separate salary scales as stipulated in Decree 19/2017/ND-CP will no longer follow the defense and security service allowances (30% or 50%) specified at Point d, Clause 8, Article 6 of Decree No. 204/2004/ND-CP dated December 14, 2004, of the Government of Vietnam. VCQP still follows the current regulations for defense and security service allowances.
The funds for implementing new CNQP salary policies and CNQP, VCQP seniority allowances for budgetary units are ensured by the national defense budget within the regular annual expenditure estimates of the units. For enterprises and public service providers, these are included as deductible expenses when determining taxable income of the enterprise, public service provider (self-accounted by the enterprise, public service providers).
Decree 19/2017/ND-CP dated February 24, 2017, of the Government of Vietnam introduces many new points on salary policies and allowance policies for CNQP and VCQP from July 1, 2016. These provisions fundamentally change CNQP salary policies, supplementing subjects eligible for seniority allowance which are CNQP and VCQP, and resolve rights on pension salary policies for these two categories of personnel (new CNQP salary and CNQP, VCQP seniority allowance are included in social insurance contribution calculations for pension determination). These are significant and practical policies affecting the benefits of CNQP and VCQP during the ongoing state and military salary policy reforms.
All policies and regulations under Decree 19/2017/ND-CP will be implemented following the issuance of circulars by the Ministry of Defense. Hence, agencies and units should thoroughly internalize and strictly follow the instructions from superiors.
Source: People's Army
