Important changes related to Vietnamese officials from July 1, 2019

There is a summary table of important changes effective from July 01, 2019, that officials should be aware of, as these changes directly affect their rights.

No. CONTENTS NOTES LEGAL BASIS
1 Increase the statutory pay rate from 1,390,000 VND/month to 1,490,000 VND/month. Applicable generally to officials and public employees from July 1, 2019 Clause 8 Article 4 Resolution 70/2018/QH14
2 Increase the actual received salary:


Actual received salary = statutory pay rate 1,490,000 VND/month x current salary coefficient.
Particularly for officials and public employees in Ho Chi Minh City, the actual received salary is further increased by 1.2 times compared to the salary according to grade, rank, and position. Article 4 Regulations issued with Resolution 03/2018/NQ-HDND
3 Increase the current allowance level - For allowances calculated based on the statutory pay rate: Allowance level = 1,490,000 VND x current allowance coefficient.


- For allowances calculated as a percentage of the current salary, combined with leadership position allowances and excess seniority allowances (if any): Allowance level = (1,490,000 VND + leadership position allowance from July 1, 2019, if any + excess seniority allowance from July 1, 2019, if any) x percentage of allowance according to regulations.
See guidance in Clause 1 Article 3 Circular 06/2018/TT-BNV
4 Increase monthly salary for social insurance contributions to the pension and death funds - For non-specialized personnel in communes, wards, and commune-level towns: Monthly salary for social insurance contributions = 1,490,000 VND x 8% = 119,200 VND/month.


- For the remaining group under the salary regime regulated by the State: Monthly salary for social insurance contributions = (salary + allowances calculated based on the statutory pay rate of 1,490,000 VND/month) x 8%.


Note: The monthly salary for social insurance contributions does not exceed 29.8 million VND/month.
Articles 2 and 85 Social Insurance Law 2014
5 Increase health insurance contributions - For non-specialized personnel in communes, wards, and commune-level towns: Contribution level = 1,490,000 VND x 4.5% = 67,050 VND/month.


- The remaining group under the salary regime regulated by the State: Contribution level = (salary + allowances calculated based on the statutory pay rate of 1,490,000 VND/month) x 4.5%.
Amended Health Insurance Law 2014 and Articles 1, 7 Decree 146/2018/ND-CP
6 Increase maternity benefits (One-time allowance on child birth or adoption) The increase from 2,780,000 VND to 2,980,000 VND (equal to 02 months of the statutory pay rate at the time of childbirth or the month the employee adopts a child).


If a female employee gives birth but only the father participates in social insurance, the father is entitled to a one-time allowance of 2,980,000 VND (the current level is 2,780,000 VND) per child.
Article 38 Social Insurance Law 2014
7 Increase unemployment benefits According to the provisions of Clause 1 Article 50 Employment Law 2013, the unemployment benefit = 60% of the average monthly salary for social insurance contribution of the 6 consecutive months before unemployment. Thus, if the monthly salary for unemployment insurance contributions in the months before July 1, 2019, is based on the increased statutory pay rate, the benefit level also increases accordingly.


Note: The maximum rate is not more than 05 times the statutory pay rate, equivalent to 7,450,000 VND/month.
Article 50 Employment Law 2013
8 Increase health recovery benefits after sickness or childbirth According to the regulations in Article 41 Social Insurance Law 2014, the benefit level for health recovery after childbirth per day is 30% of the statutory pay rate. Currently, this benefit is 417,000 VND, from July 1, 2019, it will be 447,000 VND. Articles 29, 41 Social Insurance Law 2014
9 Increase monthly pension benefits The monthly pension = 45% of the average monthly salary for social insurance contributions corresponding to the following years of social insurance contributions:


- For male employees retiring in 2018, it is 16 years; in 2019, it is 17 years; in 2020, it is 18 years; in 2021, it is 19 years; from 2022 onwards, it is 20 years.


- For female employees retiring from 2018 onwards, it is 15 years.


For each additional year, employees are entitled to an additional 2%; the maximum rate is 75%.


If retiring before the age specified, the benefit is reduced by 2% per year of early retirement. If the retirement age is fractional up to 6 months, the reduction rate is 1%; if over 6 months, there is no reduction.


The monthly salary for social insurance contributions increases from July 1, 2019; therefore, the monthly pension benefits after this time increase accordingly.


Note: The minimum monthly pension that employees can receive is 1,490,000 VND.
Article 56 Social Insurance Law 2014
10 Increase one-time pension benefits Applicable to employees with social insurance contributions higher than the number of years corresponding to the 75% pension rate.


The one-time benefit is calculated based on the number of years of social insurance contributions higher than the number of years corresponding to the 75% pension rate: Each year is calculated as 0.5% of the average monthly income for social insurance contributions.
Article 58 Social Insurance Law 2014
11 Increase one-time social insurance benefits The benefit level is calculated as follows:


Each year of contributions is calculated as 1.5 months of the average monthly salary for social insurance contributions for the years contributed before 2014, and 2 months for the years contributed from 2014 onwards. In cases where social insurance contributions are less than one year, the benefit is the amount paid; the maximum rate is 2 months of the average monthly salary for social insurance contributions.
Article 60 Social Insurance Law 2014 and Article 1 Resolution 93/2015/QH13
12 Increase monthly occupational accident or disease benefits (for a labor capacity decrease of 31% or more) The benefit for a 31% labor capacity decrease is 447,000 VND/month, corresponding to 30% of the statutory pay rate; for each additional 1% labor capacity decrease, an additional 29,800 VND is paid, corresponding to 2% of the statutory pay rate.


In addition to this benefit, employees also receive an extra monthly allowance based on the number of years contributed to the Occupational Accident and Disease Insurance Fund; for up to one year, the rate is 0.5%, and for each additional year, the rate is 0.3% of the salary basis for contributions in the previous month before the accident or diagnosis. If the accident occurs in the first month of contribution or contributions are interrupted, the salary basis for this benefit calculation is the current month's salary.
Article 49 Occupational Safety and Hygiene Law 2015
13 Increase one-time occupational accident or disease benefits (for a labor capacity decrease of 5% - 30%) A 5% labor capacity decrease entitles 7,450,000 VND, equivalent to 5 times the statutory pay rate; for each additional 1%, an extra 745,000 VND is paid, equivalent to 0.5 times the statutory pay rate.


In addition to this benefit, employees also receive an extra allowance based on the number of years contributed to the Occupational Accident and Disease Insurance Fund; for up to one year, the rate is 0.5 months' salary, and for each additional year, the rate is 0.3 months' salary basis for contributions in the previous month before the accident or diagnosis. If the accident occurs in the first month of contribution or contributions are interrupted, the salary basis for this benefit calculation is the current month's salary.
Article 48 Occupational Safety and Hygiene Law 2015
14 Increase one-time benefits for death due to occupational accidents or diseases The benefit increases from 50,040,000 VND to 53,640,000 VND, equivalent to 36 times the statutory pay rate. Article 53 Occupational Safety and Hygiene Law 2015
15 Increase health recovery benefits after treatment for injuries or diseases - The maximum benefit of 10 days for occupational accidents or diseases with a labor capacity decrease of 51% or more increases from 4,170,000 VND to 4,470,000 VND from July 1, 2019.


- The maximum benefit of 7 days for a labor capacity decrease of 31% to 50% increases from 2,919,000 VND to 3,129,000 VND from July 1, 2019.


- The maximum benefit of 5 days for a labor capacity decrease of 15% to 30% increases from 2,085,000 VND to 2,235,000 VND from July 1, 2019.


Note: Each day is entitled to 30% of the statutory pay rate.
Article 54 Occupational Safety and Hygiene Law 2015
16 Increase funeral allowance The funeral allowance increases from 13,900,000 VND to 14,900,000 VND, equivalent to 10 times the statutory pay rate. Article 66 Social Insurance Law 2014
17 Increase monthly survivor's benefits - For each dependent: The monthly survivor's benefit increases from 695,000 VND/month to 745,000 VND/month, equivalent to 50% of the statutory pay rate.


- For dependents without direct caregivers: The monthly survivor's benefit increases from 973,000 VND/month to 1,043,000 VND/month, equivalent to 70% of the statutory pay rate.
Article 68 Social Insurance Law 2014

- Nguyen Trinh -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

0 lượt xem
  • Address: 19 Nguyen Gia Thieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City
    Phone: (028) 7302 2286
    E-mail: info@lawnet.vn
Parent company: THU VIEN PHAP LUAT Ltd.
Editorial Director: Mr. Bui Tuong Vu - Tel. 028 3935 2079
P.702A , Centre Point, 106 Nguyen Van Troi, Ward 8, Phu Nhuan District, HCM City;