Labor and Financial Policies Effective from Mid-August 2018

1. One-time Special Allowance for Contributors to the Revolution

The Government of Vietnam issued Decree 99/2018/ND-CP stipulating the new standard level for determining the rates of allowances and special allowances for contributors to the revolution, which is 1,515,000 VND.

The one-time special allowance for contributors to the revolution from July 1, 2018, is calculated as follows:

- One-time allowance upon the martyr's death notification: 20 times the standard rate, equivalent to 30,300,000 VND;- Heroes of the People's Armed Forces, Heroes of Labor during the resistance period who died before January 1, 1995: 20 times the standard rate, equivalent to 30,300,000 VND;- Vietnamese Heroic Mothers, Heroes of the People's Armed Forces, Heroes of Labor during the resistance period awarded posthumously: 20 times the standard rate, equivalent to 30,300,000 VND;- Persons who are injured and have a decrease in labor capacity of 5% - 10%: 4 times the standard rate, equivalent to 6,060,000 VND;- Allowance for the relatives of revolutionary or resistance activists captured, imprisoned, and died without receiving special policies: 1.5 times the standard rate, equivalent to 2,272,500 VND.

See more about Decree 99/2018/ND-CP, effective from August 27, 2018, replacing Decree 70/2017/ND-CP.

1. Allowance for Retired Elderly Commune Officials from July 1, 2018

The Ministry of Home Affairs issued Circular 08/2018/TT-BNV regulating the monthly allowance from July 1, 2018, for retired elderly commune officials under Decision 130-CP and 111-HDBT as follows:

- Officials who were former Secretaries of the Communist Party Committee, Chairmen of the People's Committee: 1,846,000 VND x 1.0692 = 1,974,000 VND;- Officials who were former Deputy Secretaries, Vice-Chairmen, Standing Committee Members of the Communist Party Committee, Secretaries of the People's Council, Commune Army Commanders, Heads of Commune Police: 1,786,000 VND x 1.0692 = 1,910,000 VND;- Other positions: 1,653,000 VND x 1.0692 = 1,768,000 VND.

Thus, the monthly allowance for the aforementioned subjects is adjusted to increase by 6.92% compared to the allowance of June 2018.

Circular 08/2018/TT-BNV is effective from August 15, 2018.

1. Increase in Monthly Allowance for Rubber Workers

According to Circular 05/2018/TT-BLDTBXH of the Ministry of Labor, Invalids, and Social Affairs, rubber workers receiving monthly allowances before July 1, 2018, will have their allowances adjusted to increase by 6.92% following this formula:

Monthly allowance from July 2018 = June 2018 allowance x 1.0692

The above adjustment also applies to the following subjects:

- Officials, civil servants, workers, public employees, and laborers (including those who participated in voluntary social insurance, retired from the Nghe An Rural Social Insurance Fund transferred under Decision 41/2009/QD-TTg); military personnel, People's Police, and those working in cipher organizations receiving monthly pensions before July 1, 2018.- Commune, ward, commune-level town officials as per Decree 92/2009/ND-CP, Decree 121/2003/ND-CP and Decree 09/1998/ND-CP receiving monthly pensions and allowances before July 1, 2018.- Persons receiving monthly loss of working capacity allowances as per regulations; persons receiving monthly allowances under Decision 91/2000/QD-TTg and Decision 613/QD-TTg.- Persons receiving monthly labor accident and occupational disease allowances before July 1, 2018.

Circular 05/2018/TT-BLDTBXH is effective from August 15, 2018. The new rates are implemented from July 1, 2018.

1. VAMC Exempts Income-Expenditure Difference When Determining Salary Fund

Circular 04/2018/TT-BLDTBXH amends Circular 37/2016/TT-BLDTBXH on the management of labor, salaries, remunerations, and bonuses in the Vietnam Asset Management Company (VAMC).

The new regulation adds the difference between income and expenditure to the factors excluded when determining the VAMC's salary fund. Specifically, it includes:

- Objective factors prescribed in Article 11 of Circular 26/2016/TT-BLDTBXH;- State decisions:- Interference affecting the income-expenditure difference indicator or directly affecting the purchase or sale of bad debts and secured assets;- Adjusting the rate calculated on the amount recovered from bad debts purchased by VAMC using special bonds;- Adjusting the rate calculated on the remaining balance at the end of the period of the debts purchased by VAMC using special bonds.- VAMC makes new investments for business activities (excluding investments, repairs, upgrades of secured assets for debts purchased by VAMC to renovate them into offices or for lease).

Circular 04/2018/TT-BLDTBXH is effective from August 15, 2018, with the above regulations applicable from January 1, 2018.

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