What is the statutory pay rate for officials and public employees in 2020 in Vietnam? How does it compare with the statutory pay rate for officials and public employees in previous years? Are there any notable details about the statutory pay rate in 2020? Lawnet will address this issue in the article below.
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On the afternoon of November 12, 2019, the National Assembly of Vietnam approved the Resolution on the state budget estimates for 2020, in which the statutory pay rate is officially increased to 1.6 million VND/month from July 1, 2020. Compared to the statutory pay rates of previous years, the statutory pay rate for 2020 has two notable features:
1. The highest increase in the statutory pay rate to date in Vietnam
Specifically, with the statutory pay rate set at 1.6 million VND/month from July 1, 2020, the statutory pay rate for 2020 will be the highest to date (currently 1,490,000 VND/month). Thus, the statutory pay rate for 2020 will be 110,000 VND/month higher than the current statutory pay rate, which is also the highest increase in recent years (the increase in previous years ranged from 60,000 VND/month to 100,000 VND/month).
This statutory pay rate is used as the basis to:
- Calculate the salary levels in salary scales, allowances and implement other policies as prescribed by law;
- Calculate activity fees, living expenses according to legal regulations;
- Calculate the deductions and policies enjoyed based on the statutory pay rate.
With this increase in the statutory pay rate, the monthly salary and allowances calculated according to the statutory pay rate of officials and public employees will also be correspondingly increased.
2. The statutory pay rate for 2020 is the last statutory pay rate to be applied in Vietnam
Specifically, according to Section 3.1.c, Part II of Resolution 27-NQ/TW, from 2021, the current statutory pay rate and salary coefficient will be abolished, and a basic salary amount in the new salary scale will be established. 2020 will be the last year officials and public employees receive salary based on coefficients and the last year the statutory pay rate is applied.
From 2021, the salaries of officials and public employees will be calculated based on various factors, one of which is the average lowest salary in different regions of the enterprise sector.
Nguyen Trinh
- Key word:
- statutory pay rate
- official
- public employee
- Vietnam
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