Adjustment to base salary from July 1, 2023 in Vietnam

Adjustment to base salary from July 1, 2023 in Vietnam (Source: internet)

Adjustment to base salary from July 1, 2023 in Vietnam

The content is mentioned in the Report on the results of the implementation of the socio-economic development plan in 2022 and the projected socio-economic development plan in 2023.

Continue to implement preferential policies for people with meritorious services to the revolution; provide social assistance and ensure social security; and increase the rate of participation in social insurance and health insurance.

Completing and effectively implementing policies on labor and wages, in which the base salary will be adjusted from July 1, 2023.

Submitting to the Central Committee for promulgation a resolution on a number of social policy issues for the period of 2023–2030 and a vision for 2045.

Effectively deploying the National Target Program on Sustainable Poverty Reduction in the 2021–2025 period will achieve the goal of multi-dimensional and inclusive poverty reduction, bringing into play the internal resources of people and communities to rise out of poverty.

Base salary is expected to increase to 1,800,000 VND/month in Vietnam.

At the meeting with voters on the morning of October 13, the leaders of the Can Tho City People's Committee and the National Assembly deputies initially explained and absorbed the opinions and recommendations of the compatriots and voters. The Prime Minister further clarified a number of specific issues mentioned by voters.

The Prime Minister said that the implementation of wage reform was implemented in accordance with Resolution 27 of the Central Committee, but due to the impact of many factors, especially the impact of the COVID-19 epidemic, it has not been implemented.

Previously, on October 9, 2022, at the 6th Central Conference, the Party Central Committee assigned the Politburo to direct the government's Party Personnel Committee to complete the report on the salary adjustment plan for submission to the XV National Assembly for consideration and decision.

Currently, agencies are proposing a plan in the direction of raising the base salary of public sector cadres, civil servants, and public employees to 1.8 million VND (currently 1.49 million VND, an increase of about 20.8%), with an estimated time of implementation of 1/7/2023. At the same time, increase the allowance level for a number of occupations and fields accordingly. (See more).

Currently, the base salary is implemented according to Decree 38/2019/ND-CP at 1,490,000 VND/month and this level has been applied since July 1, 2019 until now.

Base salary used as a basis:

- To calculate the salary in the salary tables, allowance levels and implement other regimes as prescribed by law for the subjects specified in Article 2 of Decree 38/2019/ND-CP;

- To calculate the activity fee and subsistence fee according to the provisions of law;

- To calculate deductions and benefits according to the base salary.

Roadmap to adjust salary of civil servants under Resolution 27 in Vietnam

According to Resolution 27, the proposed roadmap for salary reform for civil servants is as follows:

- From 2021, apply a new uniform salary system for cadres, civil servants, public employees, and armed forces in the entire political system.

- In 2021, the lowest salaries of cadres, civil servants, and public employees will be equal to the average lowest salaries in the regions of the business sector.

- Periodically raise the salary level in line with the consumer price index, economic growth, and the state budget's capacity.

- By 2025, the lowest salaries of cadres, civil servants, and public employees will be higher than the average lowest salary of all regions of the business sector.

- By 2030, the lowest salary of cadres, civil servants, and public employees shall be equal to or higher than the lowest salary of the highest region of the enterprise sector.

However, due to the impact of many factors, especially the impact of the COVID-19 epidemic, salary reform for civil servants has not been implemented.

Chau Thanh

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