What are the regulations on salary regimes of Vietnamese officials, public employees and employees in 2023? Is there any change compared to 2022?
What are the regulations on salary regimes of Vietnamese officials, public employees and employees in 2023?
Pursuant to Article 3 of Decree 38/2019/ND-CP stipulating as follows:
Statutory pay rate
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.
Article 2 of Decree 38/2019/ND-CP stipulates as follows:
Regulated entities
Employees on payroll prescribed in Article 1 hereof include:
1. Public officials and public employees from central echelon to district level prescribed in Clause 1 and Clause 2 Article 4 of Law on public officials and public employees 2008.
2. Public officials and public employees at commune level prescribed in Clause 3 Article 4 of Law on public officials and public employees 2008.
3. Public employees working in public sector entities prescribed in Law on Public Employees 2010.
4. Contract employees who are paid as prescribed in Government's Decree No. 204/2004/ND-CP dated December 14, 2004 on pay policy for public officials and public employees and armed forces’ personnel, including: Contract employees in agencies of the Communist Party, the Government, socio-political organizations prescribed in Government's Decree No. 68/2000/ND-CP dated November 17, 2000 on contracts of employment for certain positions in regulatory agencies and public sector entities and Government's Decree No. 161/2018/ND-CP dated November 29, 2018 on amendments to regulations on recruitment of public employees, pay grade advancement for public officials, promotion for public employees and contracts of employment for certain positions in regulatory agencies and public sector entities.
5. Employees on state regular payroll in state-funded associations as defined in Government's Decree No. 45/2010/ND-CP dated April 21, 2010 on organization, operation and management of associations.
6. Commissioned officers, professional soldiers, non-commissioned officers, soldiers and national defense workers and public employees, contract employees in the People's Army of Vietnam.
7. Commissioned officers, non-commissioned officers on payroll, non-commissioned officers, police officers, public security workers and contract employees in the People’s Police of Vietnam.
8. Employees in cryptography organizations.
9. Part-time workers in communes, hamlets or neighborhoods.
According to the above provisions, officials and public employees are the subjects of salary according to the statutory pay rate.
The monthly salary of officials and public employees will be determined based on the statutory pay rate, region-based allowances, seniority allowances, and benefits.
Therefore, if the statutory pay rate is high, the salary of officials and public employees will also increase.
Currently, the statutory pay rate of officials and public employees is 1,490,000 VND/month. However, the National Assembly has officially approved increasing the statutory pay rate from July 1, 2023 to VND 1,800,000/month.
Therefore, the salary in 2023 of officials and public employees will be divided into 02 milestones as follows:
- From January 1, 2023 to June 30, 2023
1,490,000 x salary coefficient
- From July 1, 2023 onward:
1,800,000 x salary coefficient
Accordingly, from July 1, 2023, the statutory pay rate will increase to VND 1,800,000 - an increase of 20,805%, so the salary of officials and public employees from July 1, 2023 will increase slightly. 20.805% compared to 2022.
What are the regulations on salary regimes of Vietnamese officials, public employees and employees in 2023? Is there any change compared to 2022?
Is there any change in the salary regimes of Vietnamese employees in 2023?
For employees, salary will be paid according to the agreement between the employee and the employer. However, the salary agreement must not be lower than the region-based minimum wage.
Currently, the region-based minimum wage is specified in Article 3 of Decree 38/2019/ND-CP as follows:
- Region I: the statutory minimum wage/month is 4,680,000 VND/month, the statutory minimum wage/hour is 22,500 VND/hour.
- Region II: the statutory minimum wage/month is 4,160,000 VND/month, the statutory minimum wage/hour is 20,000 VND/hour.
- Region III: the statutory minimum wage/month is 3,640,000 VND/month, the statutory minimum wage/hour is 17,500 VND/hour.
- Region I: the statutory minimum wage/month is 3,250,000 VND/month, the statutory minimum wage/hour is 15,600 VND/hour.
Accordingly, the employee's salary will be guaranteed to be higher than the region-based minimum wage in the place where the employee works. The employee's wages are not adjusted by the statutory pay rate, so an increase in the statutory pay rate in 2023 will not lead to fluctuations in the employee's 2023 salary.
What are the regulations on salary payment rules for Vietnamese employees?
According to Article 94 of the 2019 Labor Code, the principles of salary payment to employees are as follows:
- Employers shall directly, fully and punctually pay salaries to their employees. In the cases where an employee is not able to directly receive his/her salary, the employer may pay it through a person legally authorized by the employee.
- Employers must not restrict or interfere their employees’ spending of their salaries; must not force their employees to spend their salaries on goods or services of the employers or any particular providers decided by the employers.
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