6 salary and insurance policies change from July 1

(Baonghean.vn) - The increase in basic salary from July 1, 2017 has led to many adjustments in favor of workers. In addition, July 1 is also the time when many other preferential policies take effect.

1.Civil servant and public employee salaries increased from 1,210,000 VND to 1,300,000 VND

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Decree 47/2017/ND-CP will take effect from July 1, 2017. Accordingly, the basic salary applied to cadres, civil servants and public employees will increase from 1,210,000 to 1,300,000 VND (about 90,000 VND, equivalent to 7.4%).

There are 9 groups of subjects entitled to receive salaries and allowances according to this Decree. The basic salary will be used as the basis for calculating salaries in salary tables, allowances and implementing other regimes; calculating operating expenses and living expenses according to the provisions of law; calculating deductions and regimes enjoyed according to the basic salary.

2. Pensions expected to increase by 7.44%

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A draft Decree on pension adjustment is being submitted to the Government for approval by the Ministry of Labor, Invalids and Social Affairs. If there are no changes, the Decree will be issued and take effect from July 1, 2017.

It is known that the draft Decree stipulates that pensions, social insurance benefits and monthly allowances will increase by 7.44% for groups of subjects receiving pensions, social insurance benefits and monthly allowances before July 1, 2017 for many groups of subjects.

3. Increase family health insurance premium to 7.3%

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According to the provisions of the Law on Health Insurance, the level of participation in family health insurance is built on the "base" of basic salary.

Specifically, the provisions at Point G, Clause 1, Article 2 of Decree 105/2014/ND-CP guiding the Law on Health Insurance clearly state: “Family health insurance participants will pay monthly health insurance premiums at 4.5% of the basic salary. From the second to fourth person, the premiums will be 70%, 60% and 50% of the first person's participation level, respectively. From the fifth person onwards, the participation level will be only 40% of the first person's participation level.”

Therefore, after July 1, 2017, the basic salary will increase from VND 1,210,000 to VND 1,300,000, which means an increase of about 7.3% in the family health insurance premium.

4. Increase maternity allowance by 7.4%

Maternity allowance will increase when basic salary increases from July 1, 2017.

From July 1, 2017, the one-time allowance upon childbirth or adoption (hereinafter referred to as maternity allowance) will increase by approximately 7.4% compared to the current level.

According to Article 38 of the Law on Social Insurance 2014, the one-time allowance upon giving birth or adopting a child is stipulated as follows: Female employees giving birth or employees adopting a child under 6 months old are entitled to a one-time allowance for each child equal to 2 times the basic salary in the month the female employee gives birth or the month the employee adopts the child.

In case of giving birth but only the father participates in social insurance, the father is entitled to a one-time allowance equal to 2 times the basic salary in the month of birth for each child. Therefore, the maternity allowance is also adjusted accordingly, that is, an increase of 7.4%.

5. Increase compulsory and voluntary social insurance contributions

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Vietnam Social Security has just issued Official Dispatch 2159/BHXH-BT guiding the contribution level to the Occupational Accident and Disease Insurance Fund and collecting social insurance, health insurance, and unemployment insurance according to the new basic salary level.

Accordingly, the basic salary of 1,300,000 VND/month will be the basis for calculating the salary for compulsory social insurance, health insurance, unemployment insurance, and occupational accident and disease insurance from July 1, 2017.

The subjects of application are employees participating in compulsory social insurance, health insurance, unemployment insurance, occupational accident and disease insurance under the subjects specified in Article 2 of Decree No. 47/2017/ND-CP. People working abroad under contracts specified in the Law on Vietnamese employees working abroad under contracts and people enjoying spouse benefits at Vietnamese representative agencies abroad specified in Point g, Clause 1, Article 2, Clause 4, Article 123 of the Law on Social Insurance 2014...

In addition, the monthly income of voluntary social insurance participants to calculate voluntary social insurance contributions from July 1, 2017 also changed: The highest level is 26,000,000 VND/month (1,300,000 VND/month x 20 times).

6. Increase a series of business expenses for officials and civil servants

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Circular 40/2017/TT-BTC issued by the Ministry of Finance regulating the regime of business travel expenses and conference expenses takes effect from July 1, 2017. A series of new levels of business travel expenses, accommodation allowances, actual payments, monthly business travel expenses... have been issued in an increasing direction.

Circular 40/2017/TT-BTC stipulates that the subjects of application are cadres, civil servants, public employees, and contract workers as prescribed by law working at state agencies, public service units, political organizations, socio-political organizations, and associations using funds supported by the state budget...

Accordingly, cadres, civil servants, public employees and workers on the mainland who are sent on business trips to the sea or islands are entitled to a residence allowance of VND 250,000/person/actual day at sea or islands (applied to both working days at sea or islands and days of travel to and from sea or islands).

In which, payment in the form of lump sum: For leaders at the Ministerial, Deputy Ministerial level and leadership positions with a position allowance coefficient of 1.25 or higher, the lump sum level is 1,000,000 VND/day/person, regardless of the place of work.

Peace

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