Vietnam: Who are the 09 subjects that will receive a statutory pay rate increase from July 1, 2023? How much is the statutory pay rate increased?
Who can increase the statutory pay rate from July 1, 2023?
Pursuant to Decree No. 24/2023/ND-CP stipulating the subjects eligible to apply the statutory pay rate as a basis for calculating the salary level in the salary tables, allowances and other regimes according to the provisions of the law for the specified subjects; calculation of the operating and living expenses according to the provisions of law; calculation of deductions and entitlements according to the statutory pay rate as follows:
- Cadres and civil servants from the central to the district level specified in Clauses 1 and 2, Article 4 of the 2008 Law on Cadres and Civil Servants in Vietnam.
- Commune-level cadres and civil servants specified in Clause 3, Article 4 of the 2008 Law on Cadres and Civil Servants in Vietnam.
- Public employees in public service providers as prescribed in the 2010 Law on Public Employees in Vietnam.
- People who perform jobs under the employment contract regime specified in the Government's Decree No. 111/2022/ND-CP on contracts for performance of tasks of administrative bodies and public service providers in the case of application or agreement in the employment contract to apply salary ranking according to Decree No. 204/2004/ND-CP of the Government on salary regime for cadres, civil servants, public employees and force armed.
- People working in the payroll quotas at associations are supported by the state budget for operating expenses according to the provisions of Decree No. 45/2010/ND-CP of the Government on organization, operation and management of associations.
- Officers, professional soldiers, non-commissioned officers, soldiers, workers, defense officers and contract workers of the Vietnam People's Army.
- Officers, salaried non-commissioned officers, non-commissioned officers, conscripts, public security workers and contract workers of the People's Police.
- People working in cipher organizations.
- Part-time workers at commune, village and residential groups.
Thus, from the above regulation, it can be seen that the subjects applying the statutory pay rate this time are individuals who are working in the category of cadres, civil servants and public employees who are entitled to the salary rate according to the state regulations.
Vietnam: Who are the 09 subjects that will receive a statutory pay rate increase from July 1, 2023? How much is the statutory pay rate increased? (Image from the Internet)
How much is the statutory pay rate increased?
Pursuant to the provisions of Article 3 of Decree No. 38/2019/ND-CP as follows:
Statutory pay rate in Vietnam
1. The statutory pay rate is the basis for:
a) Determining the levels of salaries in payrolls, allowances and other benefits as per the law with regard to individuals as defined in Article 2 hereof;
b) Determining subsistence allowances as per the law;
c) Determining contributions and benefits concerning the statutory pay rate.
2. From July 1, 2019, the statutory pay rate is VND 1,490,000 per month.
3. The Government shall request the National Assembly to consider adjusting statutory pay rate in conformity with the capacity of the state budget, consumer price index and national economic growth rate.
Thus, the current statutory pay rate applied is VND 1,490,000/month.
Article 3 of Decree No. 24/2023/ND-CP stipulates as follows:
Statutory pay rate in Vietnam
1. Statutory pay rate used as a basis:
a) Calculating the salary level in the salary tables and allowances and implementing other regimes as prescribed by law for the subjects specified in Article 2 of this Decree;
b) Calculating the level of operation fees and subsistence expenses according to the provisions of law;
c) Calculating deductions and entitlements according to the statutory pay rate.
2. From July 1, 2023, the statutory pay rate is VND 1,800,000/month.
3. Continue to implement the specific financial and income mechanisms for agencies and units that are implementing the specific financial and income mechanisms at the central level as prescribed by competent authorities for a number of State administrative agencies and units until the overall reform of the salary policy is implemented in accordance with Resolution No. 27-NQ/TW dated May 21, 2018 of the Seventh Conference of the 12th Central Committee; monthly salary and additional income calculated at the statutory pay rate of VND 1,800,000/month from July 1, 2023 according to a specific mechanism that ensures that the average salary and additional income do not exceed the average additional salary and income in 2022 (excluding the salary and additional income due to the adjustment of the salary coefficient by grade or grade when raising or raising ranks).
4. The Government proposes to the National Assembly to consider adjusting the statutory pay rate in accordance with the state budget capacity, consumer price index and economic growth rate of the country.
According to the above regulations, from July 1, 2023, the statutory pay rate applied will be VND 1,800,000/month. This means that the statutory pay rate will be increased to VND 310,000/month from July 1, 2023.
If the statutory pay rate is increased, will the employees at the company or enterprise increase their salary accordingly?
As mentioned in the above content, the subjects of application of the statutory pay rate are individuals who are working in the category of cadres, civil servants and public employees who are entitled to the salary rate prescribed by the state sector.
For employees in non-state companies and enterprises, the statutory pay rate is not applicable. The salary of the employee will be according to the agreement of the employee and the employer. However, the agreed salary must not be lower than the regional minimum wage in the place where the employee works.
Therefore, this increase in statutory pay rate does not affect the salary of employees at non-state companies and enterprises.
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