A series of new regulations on salaries and allowances for officials will come into effect starting from July 01, 2018. Among them, the following three important points need attention.
Article table of contents
1. Increase statutory pay rate to 1.39 million VND/month
Decree 72/2018/ND-CP officially took effect on July 1, 2018, providing for an increase in the statutory pay rate for official public employees from 1.3 million VND/month to 1.39 million VND/month, applicable to specific groups such as:
- Officials from central to district levels as stipulated in Clause 1 and Clause 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;- Public employees in public service providers as stipulated in the Law on Public Employees 2010;- Workers employed under labor contracts with salaries specified under Decree 204/2004/ND-CP;- Workers within budgetary staffing quotas in organizations receiving state budget support as stipulated in Decree 45/2010/ND-CP;- Officers, professional soldiers, non-commissioned officers, enlisted soldiers, defense workers, and public employees of the People's Army of Vietnam;- Officers, salaried non-commissioned officers, conscripted non-commissioned officers, conscripted soldiers, police workers, and labor contract employees of the People's Public Security;- Workers in cipher organizations;- Non-specialized activists at commune-level, in villages, and residential neighborhoods.
2. Apply new wage and allowance calculation based on the new statutory pay rate from July 1, 2018
To conform with the new statutory pay rate, the Draft Circular on Implementing the 2018 Statutory Pay Rate has updated the formulas for calculating wages and allowances for officials. To be specific:
Wage Calculation Formula
| (Wage as of July 1, 2018) = (1,390,000 VND/month) x (Current Salary Coefficient) |
Allowance Calculation Formula based on the statutory pay rate
| (Allowance as of July 1, 2018) = (1,390,000 VND/month) x (Current Allowance Coefficient) |
Allowance calculation formula in percentage of current wage plus leadership position allowance and seniority allowance beyond the frame
| Allowance as of July 1, 2018 = Wage as of July 1, 2018 + Leadership Position Allowance as of July 1, 2018 (if any) + Seniority Allowance beyond the frame as of July 1, 2018 (if any) x % Allowance Rate as stipulated |
Formula for calculating the amount of preserved differential coefficient (if any)
| Amount of preserved differential coefficient as of July 1, 2018 = Statutory Pay Rate 1,390,000 VND/month x Current Preserved Differential Coefficient (if any) |
Activity Fee Calculation Formula
| Activity Fee as of July 1, 2018 = Statutory Pay Rate 1,390,000 VND/month x Activity Fee Coefficient as stipulated |
3. Increase pension and allowance by 6.92% for 8 groups from July 1, 2018
In the Draft Decree on Adjusting Pensions, Social Insurance Allowances, and Monthly Allowances it is clearly stated that pensions will be adjusted to increase by 6.92% from July 1, 2018 for the following 8 groups:
- Officials, employees, public employees, workers; military personnel, public security personnel, and cipher workers currently receiving monthly pensions;- Commune-level officials as stipulated in Decree 92/2009/ND-CP, Decree 121/2003/ND-CP, and Decree 09/1998/ND-CP currently receiving monthly pensions and allowances;- Persons receiving monthly disability allowances as per the law, recipients of monthly allowances according to Decision 91/2000/QD-TTg dated August 4, 2000, Decision 613/QD-TTg dated May 6, 2010; rubber workers currently receiving monthly allowances;- Commune-level officials currently receiving monthly allowances as per Decision 130/CP dated June 20, 1975 by the Council of the Government of Vietnam and Decision 111-HDBT dated October 13, 1981 by the Council of Ministers;- Military personnel receiving monthly allowances under Decision 142/2008/QD-TTg dated October 27, 2008 and Decision 38/2010/QD-TTg dated May 6, 2010;- Public security personnel receiving monthly allowances under Decision 53/2010/QD-TTg dated August 20, 2010;- Military personnel, public security personnel, and cipher workers receiving salaries equivalent to military personnel and public security personnel currently receiving monthly allowances under Decision 62/2011/QD-TTg dated November 9, 2011;- Persons currently receiving monthly occupational accident and disease allowances.
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