Bonus regime for officials and public employees in Vietnam as of July 1, 2024

Bonus regime for officials and public employees in Vietnam as of July 1, 2024 (Internet image)

On 06/30/2024, Hanoi issued Decree 73/2024/ND-CP stipulating the statutory pay rate and the bonus regime for officials, public employees, and armed forces.

Bonus regime for officials and public employees in Vietnam as of July 1, 2024

Article 4 of Decree 73/2024/ND-CP stipulates the bonus regime as follows:

- Implementing the bonus regime based on unexpected work achievements and annual evaluation results for the subjects specified in clause 2 of Article 2 of Decree 73/2024/ND-CP.

- The bonus regime stipulated in clause 1 of Article 4 of Decree 73/2024/ND-CP is used to give unexpected bonuses based on work achievements and annual bonuses based on the evaluation results of job completion of each pay recipient in the organization. The head of the armed forces unit as per the Ministry of Defense, Ministry of Public Security; the head of the agency authorized to manage or delegated management authority of officials; and the head of the public service provider are responsible for developing specific regulations to implement the bonus regime for the subjects on the agency's payroll list; to send it to the direct superior management agency for management inspection and public disclosure within the organization.

- The bonus regulations of the organization specified in clause 2 of Article 4 of Decree 73/2024/ND-CP must include the following contents:

- Scope and subjects of application;

• Criteria for awards based on unexpected work achievements and annual evaluation results of job completion for wage earners within the organization;

• Specific bonus amounts for each case, not necessarily tied to the wage rank coefficient of each person;

• Bonus consideration procedures and processes;

• Other management requirements of the organization (if necessary).

- The annual bonus fund stipulated in this Article is outside the reward fund as per the Law on Emulation and Reward, determined as 10% of the total salary fund (excluding allowances) according to the position, title, rank, and military rank of the subjects on the organization payroll.

By the end of January 31 of the following year, if the organization does not use up the annual bonus fund, it cannot be transferred to the next year's bonus fund.

Decree 73/2024/ND-CP comes into effect from July 1, 2024.

New statutory pay rate in Vietnam after increases under Decree 73/2024/ND-CP

According to Article 3 of Decree 73/2024/ND-CP:

- The statutory pay rate is used as a basis:

• To calculate the salary levels in the salary scales, allowance levels, and other regimes as per the regulations for the subjects specified in Article 2 of Decree 73/2024/ND-CP;

• To calculate operation fees, living expenses as per the regulations;

• To calculate deductions and regimes based on the statutory pay rate.

- From July 1, 2024, the statutory pay rate is VND 2,340,000/month.

- For agencies and units applying specific financial mechanisms and incomes at the central level: Continue to maintain the difference between the salary and the increased income of June 2024 for officials and public employees with the salary from July 1, 2024, after revising or repealing the specific financial and income mechanisms. While not yet revised, apply the monthly salary and increased income calculated on the statutory pay rate of VND 2,340,000/month under the specific mechanism from July 1, 2024, ensuring that it does not exceed the salary and increased income enjoyed in June 2024 (excluding the salary and increased income adjustment due to the promotion or increase in rank). If, according to this principle, the salary and increased income from July 1, 2024 are lower than the salary per general regulations, apply the general salary regime.

- The Government will adjust the statutory pay rate after reporting to the National Assembly for consideration, corresponding to the state budget's capability, consumer price index, and economic growth rate.

Le Nguyen Anh Hao

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE