Official Increase of Statutory Pay Rate to 1,800,000 VND Starting from July 01, 2023: Who Will Receive the Statutory Pay Rate Increase from 2023?
Official Increase of the Statutory Pay Rate to 1,800,000 VND from July 01, 2023?
On the afternoon of November 11, the National Assembly voted to approve the state budget estimate for 2023 with 90.56% of delegates in favor.
The National Assembly agreed to increase the statutory pay rate for officials and public employees to 1.8 million VND per month from July 1, 2023, an increase of 20.8% compared to the current statutory pay rate (1.49 million VND per month).
From July 01, 2023, the statutory pay rate for officials and public employees will be increased to 1.8 million VND/month; pensions and social insurance allowances for those covered by the state budget will be increased by 12.5%, with additional support for retirees before 1995 with low benefits; the standard allowance for meritorious individuals will be increased to ensure it is not lower than the poverty line in urban areas, and spending on social security policies linked to the statutory pay rate will be increased by 20.8%.
From January 01, 2023, the professional preference allowance for preventive medicine and grassroots health workers will be increased according to Conclusion No. 25-KL/TW dated December 30, 2021, of the Politburo.
Continue to implement specific financial and income mechanisms for agencies and units that are applying special financial and income mechanisms at Central level as prescribed by the competent authority for certain government agencies and units until a comprehensive reform of the wage policy is implemented.
Who Will Benefit from the Statutory Pay Rate Increase from 2023?
According to the provisions of Article 2 of Decree 38/2019/ND-CP, the following subjects will receive a salary increase:
- Officials from central to district levels as stipulated in Clauses 1 and 2, Article 4 of the Law on Officials 2008.- Commune-level officials as stipulated in Clause 3, Article 4 of the Law on Officials 2008.- Officials in public service providers as specified in the Law on Public Employees 2010.- Individuals working under labor contract policies ranked according to Decree No. 204/2004/ND-CP dated December 14, 2004, of the Government of Vietnam on wage policies for officials, public employees, and armed forces, including those working under labor contract policies in agencies and units of the Communist Party, the State, and socio-political organizations as specified in Decree No. 68/2000/ND-CP dated November 17, 2000, of the Government of Vietnam on implementing labor contracts for certain jobs in state administrative agencies and public service providers, and Decree No. 161/2018/ND-CP dated November 29, 2018, of the Government of Vietnam, amending and supplementing some regulations on recruiting officials and public employees, promoting officials, and ranking public employees, and on implementing labor contracts for certain jobs in state administrative agencies and public service providers.- Individuals working under staffing in associations supported by the state budget as specified in Decree No. 45/2010/ND-CP dated April 21, 2010, of the Government of Vietnam on the organization, activities, and management of associations.- Officers, professional soldiers, non-commissioned officers, soldiers, and defense civil servants, labor contract personnel within the Vietnam People's Army.- Officers, salaried non-commissioned officers, conscripts, non-commissioned officers, conscript soldiers, police officers, and labor contract personnel within the People's Public Security.- Individuals working in the cipher organization.- Non-specialized personnel at commune level, hamlets, and residential groups.
Official Increase of the Statutory Pay Rate to 1,800,000 VND from July 01, 2023? (Image from the Internet)
Postponement of the Wage Reform Implementation under Resolution 27-NQ/TW?
Based on the guiding viewpoints and objectives of Resolution 27-NQ/TW of 2018 which established a timeline for wage reform. However, in the past two years, our country has been severely affected by the COVID-19 pandemic. To share the burden with the Communist Party and the State, the wage increase has been postponed, allocating these resources for pandemic prevention and control to safeguard the lives and property of the people.
Recently, at the Fourth Session of the 15th National Assembly, the Resolution passed by the National Assembly clearly stated that a comprehensive reform of the wage policy as per Resolution No. 27-NQ/TW dated May 21, 2018, of the Seventh Plenum of the 12th Central Committee will not be implemented in 2023.
Resolution 27-NQ/TW of 2018 also highlights the importance of wage reform as follows:
Wage policy is an especially important policy in the socio-economic policy system. Wages must genuinely be the main source of income to ensure the livelihood of the employees and their families; fair wages are an investment in human resource development, incentivizing increased labor productivity and work efficiency, contributing significantly to social progress and justice, political, and social stability; and promoting and enhancing the quality of growth and sustainable development.
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