Salaries for Civil Servants in 2018 Increased by 90,000 VND

Effective from July 1, 2018, the statutory pay rate will be adjusted from VND 1.3 million/month to VND 1.39 million/month (increased by VND 90,000). Concurrently, the pension, social insurance allowances, monthly allowances for beneficiaries ensured by the state budget, and preferential allowances for those with meritorious services will also be adjusted to increase along with the statutory pay rate.

The cost of adjusting pensions, social insurance allowances, monthly allowances according to regulations, and preferential allowances for those with meritorious services will be ensured by the central budget. For some localities with financial difficulties unable to balance sources, the central budget will partially support the additional salary increase.

According to Decision 1916, the Prime Minister directs:

- Ministries, ministerial-level agencies, agencies under the Government of Vietnam, and other central agencies are to proactively arrange expenditure tasks associated with the reorganization of the apparatus, streamline staff, strive to increase revenues in accordance with regulations, and ensure the self-balancing source for the adjustment of the statutory pay rate to VND 1.3 million/month from January 1, 2018, to June 30, 2018, and to VND 1.39 million/month from July 1, 2018;- Centrally affiliated provinces and cities continue to implement mechanisms to create resources for salary reform in 2018 from a part of the retained revenues according to the policies of agencies and units. Concurrently:- Save 10% of regular expenditures (excluding salary, allowances according to salary, salary-related expenditures, and human expenses according to policies);- 50% of the increase in local budget revenue (excluding land levy and lottery revenue); and- Residual funds for salary reform from 2017, if any.- The Minister of Finance is responsible for the 10% savings target on regular expenditures in 2018 to create resources for salary reform for each centrally affiliated province and city according to regulations.- After ensuring the requirements for salary reform, localities will proactively use their salary reform resources to implement policies and social security policies issued by the Central Government. The central budget will additionally support the budgets of certain localities for the shortfall in financial requirements according to regulations.

During the 2018-2020 period, localities with a regulated proportion of divided revenues allocated to the central budget, in cases where it is determined that the financial resources for salary reform and social security policies for the entire process are ensured and do not request central budget support, will be permitted to use the surplus salary funds to invest in projects in accordance with the law.

Read the full text of Decision 1916/QD-TTg.

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