What is the statutory pay rate?

According to Clause 1, Article 3 of Decree 72/2018/ND-CP regarding statutory pay rate for officials and public employees and armed forces, it specifies that the statutory pay rate is used as a basis:

- To calculate salary levels in salary scales, allowances, and implement other policies as prescribed by law for the subjects specified in Article 2 of this Decree;

- To calculate operational fees, living expenses according to the law;

- To calculate deductions and policies entitled according to the statutory pay rate.

=> Currently, there is no specific regulation defining what a statutory pay rate is, therefore, based on the calculation basis for the statutory pay rate, we provide the following understanding: The statutory pay rate is the salary level used as the basis to calculate salary levels in salary scales, allowances, and the implementation of various policies as prescribed by law for the specified subjects (the statutory pay rate is also understood as the lowest salary level).

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