Headlines 28/09/2017 09:57 SA

New regulations on labour and salary coming into force as of the beginning of October, 2017

Hồng Phương

The following regulations on labour and salary are the most noticeable ones which are coming into force as of October 01 - 10, 2017:

1. Regulation on time to consider raising salary grades for officers

This is the most noticeable content of the Circular No. 208/2017/TT-BQP (which is coming into force as from October 10, 2017) providing guidelines for arrangement of salaries for officers, national defense workers and public employees, non-commissioned officers, and soldiers who are appointed as professional servicemen.

According to this Circular, there is a change in the regulation of the Circular No. 152/2007/TT-BQP dated September 25, 2007 on time to consider raising salary grades for professional servicemen who are officers. To be specific:

- Time to consider raising salary grade for a professional serviceman shall be calculated from the date (month, year) on which the decision on appointment of the rank of professional serviceman or the decision on raise of salary for officer is signed.

Pursuant to regulation in the Circular No. 152/2007/TT-BQP time to consider raising salary shall be determined based on the difference between the salary coefficient of professional servicemen and that of officers.

Additionally, the Circular No. 208/2017/TT-BQP provides regulations on arrangement of salaries for defense workers who are appointed as professional servicemen.

2. Regulations on online submission of explanation about demand for employment of foreign workers

This is the most noticeable regulation in the Circular No. 23/2017/TT-BLDTBXH (which is coming into force as from October 02, 2017) regarding guidance on online issuance of work permit to foreign workers in Vietnam.

According to this Circular, at least 20 days before the planned date for employment of foreign workers, the employer must electronically submit the declaration and explanation about his/her demand for employment of foreign workers.

Presently, the submission of such declaration and explanation about demand for employment of foreign workers must be completed within duration of 30 days before the planned date for employment of foreign workers in accordance with regulations in the Circular No. 40/2016/TT-BLDTBXH dated October 25, 2016.

Thus, the employer is required to electronically complete and submit the explanation about demand for employment of foreign workers within a time limit shorter than that set forth for submission of paper explanation.  

3. Health insurance benefits for persons who are appointed to attending overseas science and technology training courses

The Circular No. 88/2017/TT-BTC providing guidance on financial mechanism for implementation of the Scheme for providing domestic and overseas training courses for human resources in science and technology with funding from state budget is coming into force as from October 07, 2017.

According to this Circular, persons who are appointed to attend overseas science and technology training courses shall have their health insurance benefits ensured through the Government’s subsidies granted for covering health insurance premiums. To be specific:

- The Government shall grant a person, who is appointed to attend an overseas training course in science and technology, a subsidy which is used to pay his/her health insurance premiums, and equal to the payable amount of health insurance premiums set forth by the host country’s government (in USD or currency of the host country) but not exceed USD 1,000/person/year.

- If a person is appointed to attend a science and technology training course in a country where the payable amount of health insurance premiums is higher than the maximum level of subsidy mentioned above, the Ministry of Science and Technology shall consider and consult the Ministry of Finance to make final decision on the level of subsidy granted in this case.

- If a person is appointed to attend an overseas science and technology training course wants to buy a health insurance benefits package whose premiums are higher than the subsidy levels set forth in this Circular, he/she shall himself/herself pay the difference.

4. Compensation for damage by improper determination of the retirement fund’s net asset value (NAV)

This regulation is introduced in the Circular No. 86/2017/TT-BTC which provides guidance on the implementation of the Government’s Decree No. 88/2016/ND-CP on voluntary supplemental retirement program and is coming into force as from October 01, 2017.

According to this Circular, the retirement fund management company that improperly determines the retirement fund’s NAV or individual retirement accounts’ balance resulting in damage suffered by fund participants must:

- Make compensation for damage suffered by fund participants in accordance with regulations in Article 23 of the Government’s Decree No. 88/2016/ND-CP dated July 01, 2016;

- The margin of error at which the compensation is payable is calculated in accordance with the regulations on determination of the retirement fund’s NAV and balances of individual retirement accounts provided that it must not be lower than 0.75% of the retirement fund’s NAV.

Within three working days from the valuation date, the retirement fund’s NAV must be published on websites of the retirement fund management company and its retirement agents.

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