Policies Effective from July 15 on Wages and Investment

1. Increase statutory pay rate to 1,210,000 VND/month from May 1, 2016

   The Decree 47/2016/ND-CP regulating the statutory pay rate for officials and public employees and the armed forces takes effect from July 15, 2016. Accordingly:

   - Apply the new statutory pay rate of 1,210,000 VND/month from May 1, 2016.- Persons with a salary coefficient of 2.34 or below are entitled to the difference if the total salary according to rank, grade, position, title, and salary allowances (if any) calculated by the statutory pay rate of 1,210,000 VND/month is lower than the total salary, the additional salary received in April 2016 calculated by the statutory pay rate of 1,150,000 VND/month.

   This difference is not used to calculate social insurance, health insurance, unemployment insurance, and other salary allowances.

   Decree 47/2016/ND-CP replaces Decree 66/2013/ND-CP and Decree 17/2015/ND-CP.

2. Guidelines for salary calculation for military personnel

   This content is prescribed in Circular 77/2016/TT-BQP implementing the statutory pay rate or military rank allowance from the state budget in agencies and units under the Ministry of National Defense effective from July 25, 2016.

   Salary from May 1, 2016 = statutory pay rate 1,210,000 VND/month x current salary coefficient.

   See more guidelines for calculating military rank allowances (including retained difference coefficient, if any) and allowances, supports in Circular 77/2016/TT-BQP.

3. Additional income for public employees under the General Department of Taxation and Customs

   From July 17, 2016, Circular 76/2016/TT-BTC regulating the financial management mechanism and personnel for the General Department of Taxation (GDT) and General Department of Customs (GDC) for the period 2016-2020 takes effect.

   GDT and GDC are allowed to use savings funds to:

   - Provide additional support besides the general policies for:- Voluntary early retirement policies during labor arrangement and reorganization;- Public employees, officials, and workers facing special difficulties or suffering from serious diseases;- Other special cases;- Supplement income for officials, public employees, and workers on average up to 0.2 times the salary level for officials and public employees (including rank, grade, position salary, and allowances, excluding public service allowances, night work, or overtime pay);- Reward organizations and individuals inside and outside the General Department of Taxation and Customs for their achievements contributing to tax and customs management activities; collective welfare expenses.

   Apply the provisions of Circular 76/2016/TT-BTC for the fiscal years from 2016-2020.

4. Doing business when the enterprise registration certificate is revoked: Fine up to 30 million VND

   According to Decree 50/2016/ND-CP stipulating administrative penalties in the field of planning and investment, fines of 20-30 million VND are imposed in the following cases:

   - Intentionally valuating capital contributions incorrectly from actual values;- Continuing business activities after the enterprise registration certificate (ERC) has been revoked;- Operating business in the form of an enterprise without registering to establish an enterprise.

   Additionally, enterprises can be fined up to 15 million VND in the case of delayed registration of changes in the ERC content.

   See detailed content in Decree 50/2016/ND-CP effective from July 15, 2016.

5. Investment support for agricultural co-operative office buildings

   This content is prescribed in Circular 15/2016/TT-BNNPTNT which guides the conditions and criteria for enjoying investment support in developing the infrastructure of agricultural co-operatives effective from July 25, 2016.

   The regulation lists the types of infrastructure eligible for support:

   - Office buildings;- Drying yards, warehouses, agricultural supply stores;- Processing workshops;- Water and electricity facilities, markets;- Irrigation works, internal road works in crop production, forestry, and salt production fields;- Infrastructure works for aquaculture and seafood farming areas.

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