6 labor – salary policies starting from January 2023

Apart from being in a festive mood to greet the new year, the last days of the year are also the most stressful for many people. Most employees are preoccupied with shopping, taking care of their families, decorating their houses, and dealing with working pressure when tasks must be completed before the holidays. However, in addition to these concerns, businesses and employees must be aware of the labor-salary and social insurance policies that will go into effect in January 2023.

Female employees retire at the age of 56

According to the Labor Code 2019 and Decree 135/2020/ND-CP, the retirement age of employees is set to rise in accordance with the roadmap until males reach 62 in 2028 and women reach 60 in 2035. As a result, the retirement age will rise by 3 months for men and 4 months for women each year.

Employee retirement ages will be adjusted for the third time in 2023. Under 2023, the retirement age for male employees working in normal conditions is 60 years and 9 months. Female employees can retire at the age of 56.

According to the Ministry of Labour, Invalids, and Social Affairs, this is the typical retirement age, however there are still occasions where employees are retired 5 years sooner, or even 10 years earlier, for reasons such as: labor is decreased and lose capacity to work; doing exceptionally heavy, hazardous, or dangerous activities or jobs; performing particularly heavy, hazardous, or dangerous occupations or jobs; performing particularly difficult occupations or tasks…

One-time social insurance payment with digital signature

The process of settling one-time social insurance benefits using a pilot application of digital signature authentication integrated in mobile apps in 2022, as outlined in Decision 422/QD-TTg and Decision 3612/QD-BHXH.

Those who have one-time social insurance and have been awarded social insurance books in accordance with regulations are eligible for the pilot application.

To complete this procedure, employees must declare information completely and properly on Form No. 14A-HSB, which is available on the Public Service Portal, digitally sign Form No. 14A-HSB, and submit documents or reference documents from an individual’s electronic data management repository and uploading them to the Public Service Portal.

Employees are not required to declare and return data, documents, and papers that are already in the social insurance agency’s database or that have been digitized, saved, linked, and shared information by the responsible authority with the Public Service Portal, a one-stop electronic information system.

Guide to the Salary Structure of Bank Civil Servants

Circular 14/2022/TT-NHNN, which establishes codes, professional standards, and compensation classification for specialized banking government officials, goes into effect on January 1, 2023.

As a result, the appointment and grading of wages into the ranks of specialized banking government officials must be based on the civil servant’s work position, responsibilities, tasks, and professional specialty.

It is not permitted to combine wage increases or raise the rank of public servant while shifting from the rank of civil servant presently held to the rank of specialized civil servant in the banking business.

Regarding the salary arrangement, the Circular clearly states that the ranks of specialized civil servants in the banking sector shall apply Table 2 (Professional salary table for cadres and civil servants in state agencies) issued together with the Decree 204/2004/ND-CP as follows:

– The rank of Senior Controller of the Bank applies the salary scale of civil servants grade A3, group 1 (A3.1), from salary coefficient 6.20 to salary coefficient 8.00;

– The rank of Chief Controller of the Bank applies the salary scale for civil servants grade A2, group 1 (A2.1), from salary coefficient 4.40 to salary coefficient 6.78;

– The Bank Controllers rank applies the A1 salary scale for civil servants, from the salary coefficient 2.34 to the salary coefficient 4.98;

– The rank of Warehouse Manager and Bank Treasurer applies the A0 salary scale for civil servants, from a salary coefficient of 2.10 to a salary coefficient of 4.89;

– Employee level Currency – Treasury applies the salary scale of class B civil servants, from salary coefficient 1.86 to salary coefficient 4.06.

The change in salary ranking for civil servants from the ranks of specialized civil servants currently held to the ranks of specialized banking employees specified in Circular 14/2022/TT-NHNN must comply with the guidance in Clause 2, Section II of this Ministry of Home Affairs Circular 02/2007/TT-BNV dated May 25, 2007 guiding salary ranking when raising ranks, changing ranks, and changing types of civil servants and public employees.

Union fee and cost collection guidelines for 2023

Instruction 65/HD-TLD and Decision 5440/QD-TLD dated October 10, 2022 detail the content of instructions on collecting trade union fees and costs.

In which the salary fund used to determine the collection of trade union fees at units in 2023 is calculated using the average wage on which social insurance premiums are paid for the first 6 months of 2022, plus a growth factor (according to the data given by the social security department) multiplied by the number of employees eligible to union dues payment.

As the foundation for paying social insurance premiums for employees, the present amount of trade union contribution is 2% of the salary fund.

The amount of trade union dues received in 2023 is based on the real number of union members at grassroots trade unions (as compared to the General Confederation’s Organizing Committee) multiplied by the members’ salary and allowances.

Increase occupational incentive payments to preventive medicine and community health personnel

The next step is to raise occupational incentive allowances for preventive medicine and community health personnel.

This information is addressed in National Assembly Resolution 69/2022/QH15 on the state budget forecast for 2023.

As a result, beginning January 1, 2023, the Ministry of Health will enhance the occupational incentive allowance for preventive medicine and grassroots health workers in accordance with Conclusion 25-KL/TW dated December 30, 2021 of the Politburo committee.

Social insurance for redundant employees when reforming state-owned enterprises

Decree 97/2022/ND-CP establishing regulations for redundant personnel when changing ownership or reorganizing a one-member limited liability corporation in which the State owns 100% of the charter capital comes into effect on January 15, 2023.

The following is the policy for redundant workers who were last hired before April 21, 1998 or before April 26, 2002:

– Redundant workers whose ages are between full 01-05 years old in comparison to the retirement age and who have paid compulsory social insurance premiums for full 20 years or more are entitled to pension and the following regimes: 

+ No deduction for pension enjoyment rate due to early retirement; 

+ Allowance for 03 months’ salary/year (full 12 months, excluding odd months) to retire before the retirement age.

+ Assistance with social insurance premiums equal to 0.4 of the average monthly minimum wage for each working year.

– Redundant employees who are less than 1 year younger than the retirement age and have paid compulsory social insurance contributions for the full 20 years or more are eligible to a pension and perks such as: 

+ No reduction in pension enjoyment rate owing to early retirement;

+ An amount equivalent to 0.2 of the average monthly minimum wage with social insurance premiums for each working year.

– Redundant employees who attain retirement age but are unable to pay required social insurance contributions for up to 06 months in order to be eligible for pension should be paid once by the State to the retirement and survivorship fund for the amount of lost months…

As can be observed, these notes are not only for employees but also for enterprises to pay attention and update in order to fully comply with the State’s aforementioned rules.