Official: 09 subjects whose statutory pay rate will be increased to 1.8 million VND/month from July 1, 2023 in Vietnam

Statutory pay rate will be increased to 1.8 million VND/month from July 1, 2023

On 14/5/2023, the Goverment issued the Decree 24/2023/NĐ-CP on increasing statutory pay rate for officials, public employees and the armed forces.

Pursuant to Clause 2 Article 3 of the Decree 38/2019/NĐ-CP stipulating statutory pay rate 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.

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Pursuant to Clause 2 Article 3 of the Decree 24/2023/NĐ-CP stipulating statutory pay rate from from July 1, 2023 as follows:

Statutory pay rate

1. The statutory pay rate shall be used as 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 of this Decree;

b) Determining the levels of subsistence allowances as per the law;

c) Determining contributions and benefits concerning the statutory pay rate.

2. From July 01, 2023, the statutory pay rate is VND 1.800.000 per month.

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As regulations above, statutory pay rate will be increased to 1.8 million VND/month from July 1, 2023 (an increase of 20.8% compared to the statutory pay rate of 1,490,000 VND/month).

Who are eligible for an increase of statutory pay rate to 1.8 million VND/month in Vietnam?

Pursuant to Article 2 of the Decree 24/2023/NĐ-CP stipulating 09 subjects whose statutory pay rate will be increased to 1.8 million VND/month as follows:

- 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.

- Public officials and public employees at commune level prescribed in Clause 3 Article 4 of Law on public officials and public employees 2008.

- Public employees working in public sector entities prescribed in Law on Public Employees 2010.

- 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.

- 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.

- Commissioned officers, professional soldiers, non-commissioned officers, soldiers and national defense workers and public employees, contract employees in the People's Army of Vietnam.

- 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.

- Employees in cryptography organizations.

- Part-time workers in communes, hamlets or neighborhoods.

Proposing of calculation of the salary for cadres, civil servants and public employees when the statutory pay rate increases

At Point a, Clause 1, Article 3 of the Draft Circular guiding the implementation of the base salary for salary and allowance beneficiaries in agencies, organizations and public non-business units of the Party and State, The Fatherland Front, socio-political organizations and associations stipulating calculation methods as follows:

Firstly, calculation of salary for cadres, civil servants and public employees

Second, calculation of allowances for cadres, civil servants and public employees

For allowances calculated according to the base salary, the allowance level will be calculated as follows:

For the allowances calculated as % of the current salary plus the allowance for the leadership title and the extra-seniation allowance (if any), it will be calculated as follows:

For allowances equal to a specific amount, the current regulations shall apply.

Third, calculation of the amount of the reserve differential coefficient

Fourth, calculation of the activity fee level of People's Council deputies at all levels

Note: The draft Circular guiding the implementation of the base salary for salary and allowance beneficiaries in agencies, organizations and public non-business units of the Party, State, Fatherland Front and organizations political - social and associations are still collecting opinions and being put into effect in practice.

Best regards!