One-time Allowance Regime for Conversion of Time in the Military

Circular 162 stipulates that the additional time due to conversion shall be counted for receiving policies as a one-time allowance, with every added year due to conversion being entitled to an allowance equivalent to one month's salary of the month immediately preceding the cessation of service in the Army, or death in service.

Example: Comrade Do Van B, First Lieutenant of professional military personnel (salary coefficient 4.45), has served in the Army for 11 years and 3 months (counted with a professional seniority of 11%); of which he served for 3 years (from July 2013 to June 2016) in the Spratly Islands, an area with a regional allowance coefficient of 1.0 and a special allowance rate of 100% (an area subject to a conversion rate of 1 year being equivalent to 1 year and 4 months; the additional time calculated for receiving the allowance is 1 year). In June 2017, Comrade B retired from active duty. The salary for May 2017 (statutory pay rate of 1,210,000 VND/month) of Comrade B is:

- Rank salary (coefficient 4.45): 1,210,000 VND x 4.45 = 5,384,500 VND.- Professional seniority allowance (11%): 5,384,500 VND x 11% = 592,295 VND.- Total monthly salary of Comrade B: 5,384,500 VND + 592,295 VND = 5,976,795 VND.- Upon retirement, Comrade Do Van B is entitled to a one-time allowance for the converted time as follows: 5,976,795 VND x 1 year x 1 month = 5,976,795 VND.

See details of Circular 162/2017/TT-BQP effective from June 25, 2017.

-Thao Uyen-

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