Circular 10/2023/TT-BNV providing guidance on statutory pay rate for officials and public employees.
Increase in statutory pay rate for officials and public employees starting July 1, 2023, correct?
On May 24, 2023, the Government of Vietnam issued Decree 24/2023/ND-CP, which includes changes to the statutory pay rate in clause 2, Article 3 of Decree 24/2023/ND-CP.
Article 3 of Decree 24/2023/ND-CP stipulates the statutory pay rate as follows:
- The statutory pay rate used as a basis to:
+ Calculate the salary in the salary tables, the allowances, and other policies per the legal provisions for the subjects specified in Article 2 of Decree 24/2023/ND-CP;
+ Calculate the operational fees and living allowances as prescribed by law;
+ Calculate the deductions and other policies based on the statutory pay rate.
- From July 1, 2023, the statutory pay rate is 1,800,000 VND/month.
- Continue implementing the special financial and income mechanisms for agencies and units that are currently implementing the special financial and income mechanisms at the central level as regulated by competent authorities for certain state administrative agencies until a comprehensive wage policy reform is carried out as per Resolution 27-NQ/TW of 2018 of the seventh Central Committee's plenary session, 12th term; the monthly increased salary and income level calculated based on the statutory pay rate of 1,800,000 VND/month from July 1, 2023, per the special mechanism must ensure it does not exceed the average increased salary and income level of 2022 (excluding the increased salary and income from adjusting the salary coefficient by rank when getting promoted).
Thus, from July 1, 2023, the statutory pay rate increases from 1,490,000 to 1,800,000.
Circular 10/2023/TT-BNV guides the statutory pay rate for officials and public employees? (Image from the Internet)
How is the statutory pay rate for officials and public employees calculated in the latest Circular from July 1, 2023?
On June 26, 2023, the Ministry of Home Affairs issued Circular 10/2023/TT-BNV guiding the implementation of the statutory pay rate for salaried subjects, allowances in Communist Party, State, Vietnam Fatherland Front, political-social organizations, and public service provider organizations.
The Ministry of Home Affairs guides the calculation of salaries, allowances, and operational fees in Article 3 of Circular 10/2023/TT-BNV as follows:
For officials, public employees, and employees specified in clauses 1, 2, 3, 4, 5, 8, and 9, Article 1 of Circular 10/2023/TT-BNV:
Based on the current salary coefficient and allowances specified in the official documents of competent authorities in the Communist Party and State regarding the salary policies for officials, public employees, and armed forces, the statutory pay rate stipulated in Decree 24/2023/ND-CP is applied as follows:
- Formula for calculating the salary:
- Formula for calculating allowances:
- For allowances calculated based on the statutory pay rate:
- For allowances calculated as a percentage of the current salary plus leadership position and seniority allowances (if any):
- Allowances specified by a specific amount will remain as per current regulations.
- Formula for calculating the amount of the preserved differential coefficient (if any):
For People's Council deputies at all levels specified in clause 6, Article 1, Circular 10/2023/TT-BNV:
Based on the operational fee coefficient for People's Council deputies at all levels stipulated in current legislation to calculate operational fees using the following formula:
For non-specialized persons at the commune level, hamlets, and residential groups specified in clause 5, Article 1, Circular 10/2023/TT-BNV:
- From July 1, 2023, the allowance fund granted by the state budget for each commune, hamlet, and residential group as specified in clauses 5 and 6, Article 2 of Decree 34/2019/ND-CP of the Government of Vietnam is calculated based on the statutory pay rate of 1,800,000 VND/month. The specific allowance for these subjects will be implemented as per clauses 5 and 6, Article 2 of Decree 34/2019/ND-CP.
- From August 1, 2023, the allowance fund granted by the state budget for each commune, hamlet, and residential group specified in clauses 1 and 2, Article 34 of Decree 33/2023/ND-CP of the Government of Vietnam is calculated based on the statutory pay rate of 1,800,000 VND/month. The specific allowance for these subjects will be implemented as per clauses 1 and 2, Article 34 of Decree 33/2023/ND-CP.
For persons working in cryptographic organizations specified in clause 7, Article 1, Circular 10/2023/TT-BNV:
- Persons working in cryptographic organizations under the management of the Ministry of Defense and Ministry of Public Security will follow the guidance of the Minister of Defense and Minister of Public Security.
- Persons working in cryptographic organizations in Communist Party, State, and political-social organizations (not under the management of the Ministry of Defense and Ministry of Public Security) will calculate salaries, allowances, and preserved differential coefficient (if any) following the calculation method prescribed in clause 1, Article 3 of Circular 10/2023/TT-BNV.
Who is responsible for implementing the statutory pay rate from July 1, 2023?
The responsibility for implementing the statutory pay rate from July 1, 2023, is specified in Article 5 of Circular 10/2023/TT-BNV:
Execution Responsibility
1. The head of the agency or unit directly managing the subjects receiving salaries, allowances, and operational fees specified in Article 1 of this Circular, based on the number of subjects as of July 1, 2023, calculates the salary, allowances, preserved differential coefficient (if any), and operational fees according to the guidance in Circular 10/2023/TT-BNV.
2. Determining the needs, sources, and disbursement methods for implementing the statutory pay rate under Decree 24/2023/ND-CP follows the guidance of the Minister of Finance.
Thus, as per the above regulations, the head of the agency or unit directly managing the subjects receiving salaries, allowances, and operational fees specified in Article 1 of Circular 10/2023/TT-BNV, based on the number of subjects as of July 1, 2023, calculates the salary, allowances, preserved differential coefficient (if any), and operational fees according to the guidance in Circular 10/2023/TT-BNV.
Circular 10/2023/TT-BNV will take effect from July 1, 2023.
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