Good News: In 2020, the Statutory Pay Rate for Vietnamese Officials and Public Employees May Increase to 1.6 Million Dong

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►►► SEE MORE: Salaries of officials and public employees increased the most in 2020

To be specific, in the Report on the evaluation of the 2019 State budget implementation, the State budget estimate and the plan to allocate the 2020 Central budget, the Government of Vietnam proposed to increase the statutory pay rate in 2020 to 1.6 million VND/month, and the majority of opinions in the Finance - Budget Committee agreed with this proposal.

Thus, if the salary increase is approved by the National Assembly, the statutory pay rate in 2020 will be 110,000 VND/month higher than the current statutory pay rate (currently 1,490,000 VND/month) and will be the highest salary rate ever. The monthly salary and allowances calculated according to the statutory pay rate of officials and public employees will also increase correspondingly. Furthermore, this increase in the statutory pay rate will lead to several impacts as follows:

- Increase in social insurance subsidies;

- Increase in minimum monthly pension;

- Increase in health insurance contributions for many subjects;

- Increase in rewards for Communist Party members;

- ...

However, under Section 3.1.c Part II of Resolution 27-NQ/TW, from 2021, the statutory pay rate and current salary coefficient will be abolished, and a basic salary will be established as a specific amount in the new salary scale. 2020 will be the last year officials and public employees receive salaries according to the coefficient, and it will also be the last year applying the statutory pay rate. From 2021, there will be 05 new salary scales for officials and public employees, specifically:

- 01 position-based salary scale applicable to officials and public employees holding leadership positions.

- 01 professional and occupational salary scale according to the rank of officials and job titles of public employees, which is commonly applied to officials and public employees not holding leadership positions.

- 03 salary scales for the armed forces, including:

+ 01 salary scale for military officers, police officers, and police non-commissioned officers (according to positions, titles, and military ranks or police ranks).

+ 01 salary scale for professional soldiers, technical police specialists.

+ 01 salary scale for defense, police workers (keeping the salary correlation of the armed forces compared to administrative officials as present).

Additionally, the appraisal agency also suggested increasing the official duty allowance and giving more attention to increasing the salaries of those receiving pensions before 1993.

Nguyen Trinh

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