Vietnam: Guidelines for calculation of salary and allowance for officials and public employees based on the statutory pay rate

According to provisions of the Resolution No. 86/2019/QH14, the National Assembly of Vietnam assigned the Government to increase the statutory pay rate from VND 1.49 million/month to VND 1.6 million/month, and at the same time adjust pensions, social insurance benefits, and monthly allowances as prescribed (for object guaranteed by the state budget) and preferential allowances for people with revolutionary merits increased by the statutory pay rate from July 01, 2020.

However, due to the outbreak of the Covid-19 pandemic, according to Clause 7 Article 3 of the Resolution No. 128/2020/QH14 on the State budget estimate for 2021 approved by the National Assembly of Vietnam on November 12, 2020, the National Assembly also agreed that in 2021, no adjustment to the base salary and poverty line has been made. At the same time, in 2020, no adjustment of statutory pay rate, pension, social insurance allowance, monthly allowance (guaranteed by the state budget) and preferential allowance for people with meritorious services will be made. Concentrating resources for the prevention and control of the Covid-19 epidemic, overcoming the consequences of natural disasters, implementing the issued social security policies, ensuring national defense, security and foreign affairs.

Thus, according to the above provisions, the statutory pay rate in 2021 of officials and public employees will not increase and remain at VND 1.49 million/month. Therefore, with the maintenance of this statutory pay rate, salaries, allowances and subsidies of officials and public employees in 2021 will also be calculated as at present.

Specifically, according to Article 3 of the Circular No. 04/2019/TT-BNV of the Ministry of Home Affairs of Vietnam, calculation of salaries and allowances for officials and public employees and employees in Party and State agencies, socio-political organizations and public non-business units are specified as follows:

- Formula for calculating salary

- Formula for calculating allowance calculated according to statutory pay rate 2021

- Formula for calculating allowance calculated according to % of current salary plus (+) leadership allowance and extra-seniority allowance (if any)

- Formula for calculating amount calculated according to retained difference coefficient (if any)

- With regard to People’s Council deputies

Note: For allowances specified in a specific amount, they will remain the same according to current regulations.

Ty Na

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