In July, 2018, Decree No. 72/2018/ND-CP of Vietnam’s Government and Circular No. 06/2018/TT-BNV of the Ministry of Home Affairs of Vietnam officially come into force with notable contents related to officials.
Article table of contents
1. Increasing the statutory pay rate and actual pay for officials and public employees
From July 01, 2018, Decree No. 72/2018/ND-CP of Vietnam’s Government officially comes into force. This Decree increases the statutory pay rate from VND 1,300,000 to VND 1,390,000, applicable to officials, public employees and armed forces personnel.
In addition to increasing the statutory pay rate, allowances and wages of officials are also increased to correspond with the new statutory pay rate. In particular, increasing the actual salary received, one-time social insurance allowances, and the level of one-time retirement benefits, etc.
2. Applying new formula for calculating the amount of pay for officials
Formulas for calculating the amount of pay and allowance for officials are specified in Circular No. 06/2018/TT-BNV of the Ministry of Home Affairs of Vietnam. To be specific:
Formula for calculating amount of pay:
Formula for calculating amount of allowance calculated according to statutory pay rate:
Formula for calculating amount of allowance calculated according to current pay plus (+) leadership allowance and extra-seniority allowance (if any):
Formula for calculating compensating wage differential (if any):
View more details at Circular No. 06/2018/TT-BNV of the Ministry of Home Affairs of Vietnam, effective from July 15, 2018.
