Joint Circular No. 27-LB/TT guiding the implementation of housing allowance included in salary

CIRCULAR

OF THE MINISTRY OF LABOUR - INVALIDS AND SOCIAL AFFAIRS - FINANCE - JOINT CIRCULAR NO. 27-LB/TT DATED DECEMBER 31, 1992

 CONSTRUCTION REGARDING THE INCORPORATION OF HOUSING ALLOWANCE INTO SALARYIMPLEMENTATION GUIDELINES

IMPLEMENTING Decision No. 118/TTg dated November 27, 1992 of the Prime Minister on rental prices for housing and incorporating housing allowance into salary, the Ministry of Labour - Invalids and Social Affairs - Finance - Construction hereby guides the implementation of incorporating housing allowance into salary as follows:

I. APPLICABLE OBJECTS FOR INCORPORATING HOUSING ALLOWANCE INTO SALARY

- Workers and officials working in administrative units, public service units, and state-owned enterprises (including contractual workers, workers and officials studying while receiving salary, and village and ward cadres receiving salary).

1. Scope of application:

- Persons receiving salary in armed forces.

- Retirees, those who have stopped working due to loss of working capacity, work-related accidents, or occupational diseases and are receiving monthly allowances.

2. LEVELS OF INCORPORATING HOUSING ALLOWANCE INTO SALARY:

The above-mentioned objects, whether renting state-owned housing or not, shall enjoy housing allowance as follows: (see table below)

For retirees, those who have stopped working due to loss of working capacity, work-related accidents, or occupational diseases, the basis for determining the level of incorporating housing allowance into salary is the salary grade or position received before retirement, loss of working capacity, work-related accident, or occupational disease.

In the case of retirees receiving pension according to a fixed rate, the fixed pension rate belongs to the group of salary levels specified. If the fixed pension rate is lower than the minimum wage of 220 dong, they will receive housing allowance according to the group of salary levels below 242 dong as specified above.

Group of salary levels (grades, positions)

a. Sources of funds.

- For objects in the administrative and public service sectors, armed forces receiving salary, retirees, and those who have stopped working due to loss of working capacity, work-related accidents, or occupational diseases, the funds are provided by the state budget according to the current system of budget management.

- For workers and officials in state-owned enterprises (including factories under the Ministry of National Defence, Ministry of Public Security, and other types of enterprises with business accounting), the aforementioned housing allowance is included in the unit price of salary. In the interim, while the state has not announced a new inflation adjustment factor for calculating the unit price of salary, the housing allowance is calculated based on actual labor presence and accounted for in cost or circulation fees.

- For workers and officials on leave due to illness, maternity, work-related accidents, or occupational diseases and receiving social insurance benefits, the housing allowance is paid from the social insurance fund. Until the social insurance fund does not deduct the housing allowance, the unit prepares a budget and pays it out.

b. Payment methods:

- The housing allowance is directly paid together with the monthly salary or allowance to the applicable objects.

- For the administrative and public service sectors, armed forces receiving salary, the competent authority or unit establishes a budget based on the applicable objects and sends it to the financial department for review and disbursement along with regular funding.

- For retirees, those who have stopped working due to loss of working capacity, work-related accidents, or occupational diseases and are entitled to housing allowance, the Department of Labour - Invalids and Social Affairs compiles the number of objects and the amount of housing allowance for each district and county, which is then sent to the Department of Finance - Price Control for consolidation. Both departments coordinate to report to the Ministry of Labour - Invalids and Social Affairs and the Ministry of Finance for consideration and disbursement of funds for housing allowance along with the local monthly pensions and allowances.

II. SOME OBJECTS ELIGIBLE FOR HOUSING POLICY TAX EXEMPTION OR REDUCTION

1. Eligible objects and exemption levels for housing rent:

Cadres engaged in revolutionary activities before 1945; Heroes of the Armed Forces, Heroes of Labor, Class I invalids, Class I war invalids; main relatives of only children who are martyrs or main relatives of only children who are martyrs or higher, not receiving salary but receiving monthly allowances or subsidies and renting state-managed housing, are exempt from paying all housing rent (if directly allocated housing or the lease contract holder) or exempt from paying the portion within their own standard (if not directly allocated housing or the lease contract holder and there are other family members receiving salary living together).

In cases where the above objects receive salary and housing allowance as stipulated in Section I of this Circular, if the actual housing rent exceeds or equals the housing allowance incorporated into their salary and that of other family members, they only need to pay the exact amount of housing allowance received (for themselves and other family members); if the actual housing rent is less, they pay according to the lesser amount. In cases where the above objects do not reside themselves but sublet state-owned housing or use it for other purposes, they must fully pay the housing rent as prescribed and fulfill tax obligations for housing business operations as required by law.

2. Eligible objects and reduction levels for part of housing rent:

Some policy objects not receiving salary and housing allowance but receiving monthly allowances, if renting state-owned housing, are eligible for partial reduction in housing rent, including:

a) Class II invalids and Class II war invalids are reduced by 20,000 dong/month.

b) Class III invalids, Class IV invalids, and Class III war invalids are reduced by 13,000 dong/month.

c) Those who have made contributions to the country, main relatives of martyrs, main relatives of deceased workers and officials, and military personnel, receiving monthly allowances, retired rubber plantation workers receiving allowances at a fixed rate of 110 dong as stipulated in Joint Circular No. 1-TT/LB/CS dated January 10, 1987 of the Ministry of Finance - Invalids and Social Affairs and Circular No. 6-LĐTBXH/TT dated April 27, 1988 of the Ministry of Labour - Invalids and Social Affairs, are reduced by 9,000 dong/month.

c) Persons who have rendered meritorious service to the country, primary relatives of martyrs, primary relatives of deceased civil servants and military personnel, and retired rubber plantation workers receiving monthly allowances at the rate of 110 units as stipulated in Circular Joint No. 1-TT/LB/CS dated January 10, 1987, issued jointly by the Ministry of Finance and the Ministry of Labor, War Invalids and Social Affairs, and Circular No. 6-LDTBXH/TT dated April 27, 1988, issued by the Ministry of Labor, War Invalids and Social Affairs, shall be entitled to a reduction of 9,000 dong per month for rent.

||| In a household renting state-owned housing, if the actual rent is less than the total amount reduced for the eligible individuals, then the entire rent shall be waived.

3. For workers and officials who ceased employment pursuant to Decision No. 176-HĐBT and Decision No. 111-HĐBT, the following shall apply:

a) If they ceased employment before November 1, 1992 (the effective date of Decision No. 118-TTg),

b) If they ceased employment after November 1, 1992, then in the severance pay, the housing allowance shall be included and they must pay rent according to the regulations. This housing allowance shall be incorporated into the salary structure to calculate the one-time severance pay, for administrative and public service sectors funded by the State budget, and for production and business sectors it shall be accounted for in cost or circulation fees.

4. Method of implementing exemptions and reductions.

The State budget shall be responsible for handling the revenue loss resulting from the implementation of exemption and reduction policies for the subjects specified in Point 1, Point 2, and Point 3a of Section II above for organizations managing and operating state-owned housing funds, in accordance with specific guidelines issued by the Ministry of Finance.

(Issued together with Decision No. 206/1998/QĐ-NHNN6 dated June 11, 1998 of the Governor of the State Bank of Vietnam)

- This Circular takes effect from November 1, 1992.

- The initial lump-sum payment (1, 2, 3, or 4 months' salary) for retirees or those unable to work, calculated based on the October 1992 salary level, does not include the housing allowance.

- Workers, officials, and military personnel who died before November 1, 1992, but whose benefits were processed or their dependents received them after November 1, 1992, shall have the one-time lump-sum payment (4, 5, or 6 months' salary) also include the housing allowance as stipulated above.

- In cases of relocation, if the transfer agreement was signed before November 1, 1992, the new receiving unit shall pay the housing allowance from November 1, 1992.

- This housing allowance shall not be added to the base salary, rank salary, pension, or other allowances. Incorporating the housing allowance into the salary as provided in this Circular shall be uniformly applied nationwide. All provisions contrary to this Circular are hereby abolished. Any issues arising during implementation should be reported to the relevant ministries for study and resolution.