04 Wage Policies Effective from Mid-August 2017

1. 8 categories of beneficiaries eligible for pension and allowance increases from July 1, 2017

Decree 76/2017/ND-CP (effective from August 15, 2017) adjusts pensions, social insurance allowances, and monthly allowances for the following beneficiaries:

- Government employees, workers, public employees, and laborers; military personnel, public security officers, and those involved in cryptographic work receiving monthly pensions;- Commune-level officials and employees as per Decree 92/2009/ND-CP, Decree 121/2003/ND-CP, and Decree 09/1998/ND-CP receiving monthly pensions and allowances.- Those receiving monthly working capacity loss allowances; those receiving monthly allowances as per Decision 91/2000/QD-TTg, Decision 613/QD-TTg; rubber workers receiving monthly allowances;- Commune-level officials and employees receiving monthly allowances as per Decision 130/CP and Decision 111-HDBT;- Military personnel receiving monthly policy allowances as per Decision 142/2008/QD-TTg, Decision 38/2010/QD-TTg;- Public security officers receiving monthly allowances as per Decision 53/2010/QD-TTg;- Military personnel, public security officers, and those involved in cryptographic work receiving salaries comparable to military personnel and public security officers who receive monthly allowances as per Decision 62/2011/QD-TTg.- Those receiving monthly occupational accident and disease allowances.

From July 1, 2017, the above-mentioned beneficiaries will receive an additional 7.44% on their June 2017 monthly pension, social insurance allowance, and monthly allowances.

1. Formula for calculating increased pension and allowances for commune-level officials

Circular 18/2017/TT-BLDTBXH guides the adjustment of pensions, social insurance allowances, and monthly allowances for the beneficiaries specified in Clauses 1, 2, 3, and Clause 8 of Article 1 Decree 76/2017/ND-CP.

from July 1, 2017:

Pension and Allowance = June 2017 Pension and Allowance x 1.0744

- Example 1: Mr. A has a pension for June 2017 of 4,500,000 VND/month.

Therefore: Mr. A's pension from July 2017 = 4,500,000 VND/month x 1.0744 = 4,834,800 VND/month.- Example 2: Mr. B is a commune-level official who retired, receiving a monthly allowance as per Decree 09/1998/ND-CP with a monthly allowance for June 2017 of 1,970,000 VND/month.

Therefore, Mr. B’s monthly allowance from July 2017 = 1,970,000 VND/month x 1.0744 = 2,116,568 VND/month

Refer to Circular 18/2017/TT-BLDTBXH effective from August 15, 2017.

1. Funding source for implementing the increased statutory pay rate in 2017

On June 30, 2017, the Ministry of Finance issued Circular 67/2017/TT-BTC guiding the identification of needs, sources, and disbursement methods for implementing the increased statutory pay rate as per Decree 47/2017/ND-CP and the monthly allowance adjustment for retired commune-level officials as per Decree 76/2017/ND-CP.

The funding source for implementing Decree 47 and Decree 76 in 2017 for provinces and centrally-run cities is specified as follows:

- Utilize the source of 10% savings in regular expenditures as per the 2017 budget allocation decision from the Ministry of Finance;- Utilize 50% of the increase in local budget revenue in 2016 compared to the 2016 plan assigned by the Prime Minister;- Utilize at least 40% of retained revenue according to the policies for 2017; for the health sector, utilize at least 35%.- The unused balance of the 2016 wage reform fund, if any;

Refer to Circular 67/2017/TT-BTC effective from August 15, 2017.

1. Guidance on monthly allowance, occupational accident/disease allowance, and death benefits

As guided in Official Dispatch 3162/BHXH-CSXH dated July 27, 2017, of Vietnam Social Security, the levels of monthly allowance, occupational accident/disease allowance, and death benefits from July 1, 2017, are as follows:

- Monthly allowance for commune-level officials, working capacity loss allowance, monthly allowance as per Decision 91/2000/QD-TTg and Decision 613/QD-TTg, rubber workers' monthly allowance:

Allowance = June 2017 Social Insurance Allowance x 1.0744

- Occupational accident/disease allowance:

Allowance = June 2017 Occupational Accident/Disease Allowance x 1.0744

- Monthly death benefits for dependents:- For an allowance rate equivalent to 40% of the general minimum wage (statutory pay rate of 1.3 million VND), the monthly allowance is 520,000 VND;- For an allowance rate equivalent to 50% of the general minimum wage, the monthly allowance is 650,000 VND;- For an allowance rate equivalent to 70% of the general minimum wage, the monthly allowance is 910,000 VND.

Official Dispatch 3162/BHXH-CSXH is effective from August 15, 2017.

Video on salary policies effective from mid-August 2017

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