Regulations on salary and investment in effect from mid-July 2016

1. Statutory pay rate to be increased as of May 01, 2016

The statutory pay rate of VND 1,210,000 per month shall take effect as of May 01, 2016.

Such prominent detail is stated in the Decree No. 47/2016/ND-CP on the statutory pay rate for state officials, state employees and armed forces’ personnel. The decree shall take effect on July 15, 2016.

Moreover, the Decree provides the following guideline for the said individuals entitled to a salary rate of 2.34 or lower and granted with additional pay as per the Decree No. 17/2015/ND-CP: />
- If their total salary based on grade, rank, position, title and allowances (if any) subject to the statutory pay rate of VND 1,210,000 per month is lower than the total sum of salary and additional pay subject to the statutory pay rate of VND 1,150,000 per month, they shall receive amount(s) that equalize the earning with their total remuneration in April 2016.

- Such amount(s) shall not constitute any contributions to social insurance, health insurance and unemployment insurance or allowances.

Decree No. 66/2013/ND-CP and Decree No. 17/2015/ND-CP shall lose effect on May 01, 2016.

2. Higher remuneration for state officials in General Department of Taxation and General Department of Customs

General Department of Taxation and General Department of Customs shall be authorized to spend the saving budget on essential contents, such as:

- Increase the average remuneration for state officials, state employees and workers in the General Department of Taxation and General Department of Customs at most 0.2-fold the salary rate that the Government defines for state officials and employees.

The spending shall be at the discretion of the heads of such bodies according to the occupational efficiency. The spending must be fair and reasonable, be agreed by the trade union and be announced to every employee.

- Grant the un-regulated benefit to officials and employees who voluntarily resign during workforce restructuring; provide aids to state officials, state employees and workers who face severe hardship or succumb to fatal diseases, etc.

Such content is defined in the Circular No. 76/2016/TT-BTC, in effect as of July 17, 2016. It applies to the budget period of 2016 to 2020.

3. Tardy registration of amendment to the certificate of business registration: Maximum fine of VND 15,000,000

Such content is defined in the Decree No. 50/2016/ND-CP on penalties against administrative violations of regulations on planning and investment (in effect as of July 15, 2016).

Furthermore, the enterprise committing such violation ought to apply for amendments to the certificate of business registration as per regulations.

Moreover, the Decree defines other prominent details, as follows:

- A fine of VND 10,000,000 to VND 20,000,000 shall be imposed for non-registration of amendments with the business registration authority when charter capital is not adequately contributed as registered.

- Business households employing 10 or more regular workers shall incur a fine of VND 3,000,000 to VND 5,000,000 and ought to register as an enterprise as per the 2014's Enterprise Law.