Review of highlighted events of 2017 in the labor – salary sector

As the year 2017 has gone by, are you sure that you have not ignored any regulatory policies regarding labor, salary, social security, health insurance and unemployment insurance?  Let Dan Luat forum help you have a quick look at these policies!

1. Base pay rate applied to public officers, servants and employees

From January 1, 2017 to June 30, 2017: VND 1,210,000/month
From July 7, 2017 to June 30, 2018: VND 1,300,000/month.

Calculation of pay and allowance rate from July 1, 2017 to December 31, 2017:

Statutory pay rate applied from July 1, 2017 = Base pay rate equaling VND 1,300,000/month x current pay coefficient

- With respect to allowances calculated on the basis of base pay rate:
Statutory pay rate applied from July 1, 2017 = Base pay rate equaling VND 1,300,000/month x current allowance coefficient

- With respect to total allowance calculated by % of current pay rate plus leadership-based allowance and out-of-payroll seniority-based allowance (if any):
Allowance rate applied from July 1, 2017 = (Pay rate applied from July 1, 2017 + Leadership-based allowance rate applied from July 1, 2017 (if any) + Out-of-payroll seniority-based allowance rate applied from July 1, 2017 (if any) x % of prescribed allowance.

- With respect to allowances represented in specific monetary amounts as prescribed, current regulations on these allowances will remain in force.
From July 1, 2018 onwards: VND 1,390,000/month.

Legal basis: Decree No. 47/2017/ND-CP, Circular 02/2017/TT-BNV and the Resolution No. 49/2017/QH14 on the 2018 state budget plan

2. Region-specific minimum pay rate applied in 2017

Region I: VND 3,750,000/month.
Region II: VND 3,320,000/month.
Region III: VND 2,900,000/month.
Region IV: VND 2,580,000/month.

In the upcoming time of 2018, region-specific minimum pay rate will be applied as follows:

Region I: VND 3,980,000/month.
Region II: VND 3,530,000/month.
Region III: VND 3,090,000/month.
Region IV: VND 2,760,000/month.

Legal basis: Decree No.153/2016/ND-CP, Decree No. 141/2017/ND-CP.

3. Reduction in the rate of social security contribution paid by employers made from June 1, 2017 

Instead of the contribution rate equaling 1% of the payroll or 1% of the base pay rate which is paid as social security contribution to the Fund for occupational accident and disease insurance, from June 1, 2017, that contribution rate have been reduced to 0.5%.  

Legal basis: Decree No. 44/2017/ND-CP.

4. Adjustment in retirement pensions and social security benefits made from July 1, 2017

The rate of retirement pension, social security benefit and monthly benefit of June 2017 has been increased by 7.44% from that date.

The formula is specified as follows:

The rate of retirement pension, social security benefit and monthly benefit as from July 2017 = the rate of retirement pension, social security benefit and monthly benefit of June 2017 x 1.0744.

Monthly benefit rate applied from July 1, 2017 = Rate of benefit received in June 2017 x 1.0744 

Legal basis: Decree No. 76/2017/ND-CP, Circular 18/2017/TT-BLDTBXH and Circular No. 242/2017/TT-BQP.

5. Pay scale and allowances applied to national defence personnel  

* Pay scale:

CATEGORY, GROUP AND PAY COEFFICIENT			PAY GRADE
			1	2	3	4	5	6	7	8	9	10
Category A	Group 1	Pay coefficient	3.50	3.85	4.20	4.55	4.90	5.25	5.60	5.95	6.30	6.65
	Group 2	Pay coefficient	3.20	3.55	3.90	4.25	4.60	4.95	5.30	5.65	6.00	6.35
Category B	Pay coefficient		2.90	3.20	3.50	3.80	4.10	4.40	4.70	5.00	5.30	5.60
Category C	Pay coefficient		2.70	2.95	3.20	3.45	3.70	3.95	4.20	4.45	4.70	4.95

* Allowances:

- Out-of-payroll seniority-based allowance;
- Regional allowance;
- Special allowance;
- Hazard and danger allowance;
- Responsibility allowance;
- Official duty allowance;
- Allowances or perks paid to personnel working in areas facing severe socio-economic hardship.

Legal basis: Decree No. 19/2017/ND-CP.

6. Repeal of statutory requirement for submitting Identity card or Citizen’s Identification card to apply for employment support loans  

This regulation is applied to documentation requirements that both employees and employers must satisfy to apply for loans for employment generation, maintenance and expansion. 

Legal basis: 2017 Resolution No.93/NQ-CP.

7. Repeal of statutory requirement for submitting the birth certificate to apply for parental benefits

Specifically, the following documents are not required to apply for social security and health insurance benefits, including: 

- Copy of the birth certificate or copy of the proof of birth; copy of the death certificate in case of neonatal death; copy of the death certificate in case of maternal death, all of which are not required to apply for parental benefits.

- Copy of the death certificate or the death notice or copy of the Court’s decision on declaration of death which has been legally enforceable, all of which are required to apply for death benefit or benefits to which retired teachers who have not yet been paid seniority-based allowances are entitled.

- Copy of the permanent residence book obtained at the latest arrival place; copy of ID card/passport previously required to be submitted by bearers who are currently receiving monthly retirement pensions or social security benefits, or those who are expected to receive monthly payment of retirement pensions or social security benefits, to apply for registration of their referral between provinces.    

- Birth certificate submitted to apply for registration of adjustment in personal identity information by bearers who are currently receiving monthly payment of retirement pensions or social security benefits, or registration of modification and cancellation of the decision on or termination of entitlement to social security benefits.  

- Death certificate or death notice submitted to obtain permission to trace back and receive monthly payment of retirement pension or social security benefit or one-off payment of social security benefit which deceased bearers have not received in certain months. 

    

- Birth certificate of children under 6 of age submitted in case of use of health care services covered by health insurance or direct payment for healthcare costs covered by health insurance. 

Legal basis: 2017 Resolution No.125/NQ-CP.

8. Change in the benchmark for calculation of grants and benefits offered to revolutionary contributors

The benchmark amount is VND 1,417,000.

Legal basis: Decree No. 70/2017/ND-CP.

9. Change in assessment and classification of public officers, servants and employees

Click here to read more details.

Legal basis: Decree No. 88/2017/ND-CP.

10. Instructions for issuing work permits online

Step 1: Type an applicant’s information and send the application for work permit online.

Note: Application documents must be available in the .pdf, .doc, .docx or .jpg format provided that entire contents of the printed version of these documents are kept unchanged, and may be converted from printed versions to electronic versions.   

Step 2: The issuing authority informs the processing result within 05 working days of receipt of these application documents. 

Step 3: If the processing result confirms that these documents are accepted, employers are required to submit, whether directly or by post, original copies of these documents for verification and depositing purposes in accordance with regulations in force.  

 

Step 4: Return original documents and issue work permits within 8 working hours of the issuing authority's receipt of these original documents.

Legal basis: Circular No. 23/2017/TT-BLDTBXH. 

11. New guidelines for structuring pay grades of public administrative personnel that are provided in the Circular No. 05/2017/TT-BNV 

 

Click here to read more details.

12. Chart of pay grades of national defence personnel relative to service time length during which their social security contributions have been made

Category	Group	Grade 1	Grade 2	Grade 3	Grade 4	Grade 5	Grade 6	Grade 7	Grade 8	Grade 9	Grade 10
CATEGORY A	Group 1
	Updated pay coefficient	3.50	3.85	4.20	4.55	4.90	5.25	5.60	5.95	6.30	6.65
	Service time length during which social security contributions have been paid (year)		2	4	7	10	13	16	19	22	25
	Group 2
	Updated pay coefficient	3.20	3.55	3.90	4.25	4.60	4.95	5.30	5.65	6.00	6.35
	Service time length during which social security contributions have been paid (year)		2	4	6	9	12	15	18	21	24
CATEGORY B	Updated pay coefficient	2.90	3.20	3.50	3.80	4.10	4.40	4.70	5.00	5.30	5.60
	Service time length during which social security contributions have been paid (year)		2	4	6	8	11	14	17	20	23
CATEGORY C	Updated pay coefficient	2.70	2.95	3.20	3.45	3.70	3.95	4.20	4.45	4.70	4.95
	Service time length during which social security contributions have been paid (year)		2	4	6	8	10	12	15	18	21

Legal basis: Circular No. 207/2017/TT-BQP. 

13. Pay scale for corresponding military cryptographic ranks

No.	Military cryptographic ranks	Pay coefficient
1	Grade 1 equivalent to the pay coefficient applied to the Second Lieutenant rank	4.20
2	Grade 2 equivalent to the pay coefficient applied to the First Lieutenant rank	4.60
3	Grade 3 equivalent to the pay coefficient applied to the Senior Lieutenant rank	5.00
4	Grade 4 equivalent to the pay coefficient applied to the Captain rank	5.40
5	Grade 5 equivalent to the pay coefficient applied to the Major rank	6.00
6	Grade 6 equivalent to the pay coefficient applied to the Lieutenant Colonel rank	6.60
7	Grade 7 equivalent to the pay coefficient applied to the Senior Lieutenant rank	7.30
8	Grade 8 equivalent to the pay coefficient applied to the Colonel rank	8.00
9	Grade 9 equivalent to the pay coefficient applied to the Major General rank	8.60
10	Grade 10 equivalent to the pay coefficient applied to the Lieutenant General rank	9.20

Legal basis: Circular No. 07/2017/TT-BNV. 

14. Chart showing difference in salary paid to officers who are designated as professional soldiers

Officers		Senior professional soldiers
	Pay coefficient	Group 1		Group 2
Military ranks		Pay grade	Pay coefficient	Pay grade	Pay coefficient
Lieutenant Colonel	6.60	9	6.65	9	6.45
- 1st pay increase	7.00	10	7.00	10	6.80
- 2nd pay increase	7.40	11	7.35	11	7.15
Major	6.00	8	6.30	8	6.10
- 1st pay increase	6.40	9	6.65	9	6.45
- 2nd pay increase	6.80	10	7.00	10	6.80
Captain	5.40	6	5.60	6	5.40
- 1st pay increase	5.80	7	5.95	7	5.75
- 2nd pay increase	6.20	8	6.30	8	6.10
Senior Lieutenant	5.00	5	5.25	5	5.05
- 1st pay increase	5.35	6	5.60	6	5.40
- 2nd pay increase	5.70	7	5.95	7	5.75
First Lieutenant	4.60	4	4.90	4	4.70
Second Lieutenant	4.20	3	4.55	3	4.35

Legal basis: Circular No. 208/2017/TT-BQP. 

15. From now to end of 2020, officers given support for their social security contributions

- The support policy will cover 100% of costs incurred from payment of monthly salaries and social security contributions during the period when officers and professional soldiers who work for national defence and security military enterprises take their pre-retirement leaves.   

- The support policy will cover 70% of costs incurred from payment of monthly salaries and social security contributions during pre-retirement leaves of officers and professional soldiers who work for national defence economic enterprises adopting the organizational and personal structure like military organizations (i.e. having divisions specializing in politics, investigation or inspection; warfare and military training); are assigned reserve force tasks; perform tasks in areas which have strategic importance in the national defence and security sector if these enterprises make business loss.  

Legal basis: Circular No. 182/2017/TT-BQP. 

16. Calculation of salary and time in service for entitlement to social security benefits

With regard to monthly salary used as the basis for calculation of one-off payment of benefits: 

There are 2 calculation methods, including:

- Social security benefit is calculated based on the average rate of salaries paid in months of payment of social security contribution that constitute 05 final years before professional soldiers, national defence engineering workers and administrative officers retire; 

- Social security benefit is calculated based on salary paid in the month preceding the time when professional soldiers, national defence engineering workers or administrative officers, are demobilized, resigned, die while on duty or pass away; 

Note: Monthly salary used as the basis for calculation of one-off payment of social security benefit comprises salary classified by category, group and grade with respect to professional soldiers and national defence engineering workers; group, sub-group and grade with respect to national defence administrative officers, leadership position allowance, out-of-payroll seniority allowance and professional seniority allowance, and the retained differential factor. 

     

With regard to time in service used as the basis for calculation of payment of benefits:

There are 2 calculation methods:

- Such time includes time in military service (including time in service as an officer, professional soldier, non-commissioned officer, soldier, national defence engineering worker and administrative officer) and time during which social security holders performing service at entities having state-funded salaries paid social security contributions before performing services in military forces, except time during which they worked at entities paying social security contributions for them but they already received demobilization or resignation benefits;

      

- Such time includes time in military service (including time in service as an officer, professional soldier, non-commissioned officer, national defence engineering workers and administrative officers) when social security holders directly or indirectly engage in wars or carry out assigned duties at underprivileged areas or in particular industries; 

        

Note: Time in service, if interrupted without one-off payment of benefit made (in case of demobilization or resignation), will be accrued.

Legal basis: Circular No. 162/2017/TT-BQP. 

17. Requirements that public officers and employees must satisfy to be eligible for postgraduate education  

- Public officers:

+ Work for at least 03 years (excluding the internship period) and 02 consecutive years during which they are good at performing their assigned duties prior to being sent to participate in postgraduate education programs;  

+ Not more than 40 years of age from the first time when they were sent to take postgraduate education; 

+ Agree to make a commitment to work for their host entities after completing postgraduate programs within a period which is at least 2 times as much as the training period; 

+ Ensure that the major they are going to study is relevant to their work position.

- Public employees:

+ Have already completed their internship (if any);

+ Agree to make a commitment to work for their host entities after completing postgraduate programs within a period which is at least 2 times as much as the training period; 

+ Ensure that the major they are going to study is relevant to their work position.

If they apply for postgraduate education programs offered under foreign cooperation agreements which the Vietnam Government is a signatory or accedes, in addition to the abovementioned, they must satisfy other requirements set out by these programs.  

   

Legal basis: Decree No. 101/2017/ND-CP.

18. High-achieving students paid 100% of salary during internship at governmental bodies

 

For the purpose of recruitment of high-achieving students and young scientists, the Decree No. 140/2017/ND-CP provides preferential treatment given to these students and scientists by enforcing regulations on recruitment form and salary payment under which they are paid 100% of salary and extra pay during their internship period.

Reading in Vietnamese: Điểm lại sự kiện nổi bật trong lĩnh vực lao động – tiền lương năm 2017