Guidance on determining financial needs for implementing statutory pay rates and bonus policies in Vietnam under Decree 73

Guidance on determining financial needs for implementing statutory pay rates and bonus policies in Vietnam under Decree 73 (Internet image)

On August 20, 2024, the Minister of Finance issued Circular 62/2024/TT-BTC guiding the determination of needs, sources, and methods for implementing statutory pay rate and bonus policies according to Decree 73/2024/ND-CP and adjustments to monthly allowances for retired commune officials according to Decree 75/2024/ND-CP.

Guidance on determining financial needs for implementing statutory pay rates and bonus policies in Vietnam

According to Article 3 of Circular 62/2024/TT-BTC, the determination of budget needs for implementing statutory pay rate and bonus policies according to Decree 73/2024/ND-CP and the adjustment of allowances for retired commune officials according to Decree 75/2024/ND-CP is guided as follows:

(1) The determination of the subjects officials and public employees, armed forces, and workers eligible for the statutory pay rate and bonus policies according to Decree 73/2024/ND-CP is implemented according to the guidance of the Ministry of Home Affairs and competent authorities, noting:

- The total number of officials and public employees, armed forces, and workers receiving salaries from the state budget to determine budget needs for implementing statutory pay rate and bonus policies according to Decree 73/2024/ND-CP in 2024 is the actual number as of July 1, 2024, within the number of staff approved by the competent authority (or approved);

- Do not compile the number of subjects exceeding the staff quota assigned (or approved) by the competent authority for 2024; agencies and units are responsible for handling the surplus staff according to the law;

- Do not compile the number of subjects who are working under contractual policies as stipulated at point d, clause 1, Article 2 of Decree 73/2024/ND-CP; agencies, units allocate budget estimates assigned by the state and other legal sources to pay these subjects according to the provisions of Article 12 of Decree 111/2022/ND-CP on contracts for some types of work in administrative agencies and public service providers.

(2) The budget needs of ministries, central agencies, and provinces, centrally-run cities are determined to include the following policies:

- Budget needs for implementing statutory pay rate and bonus policies according to Decree 73/2024/ND-CP for the subjects mentioned in (1), including salaries, allowances, contributions according to policies (social insurance, unemployment insurance, health insurance, trade union funding) and the bonus fund as prescribed. The method of determining salaries, allowances, and the bonus fund is implemented according to the guidance of the Ministry of Home Affairs and competent authorities in Vietnam.

- Paying health insurance for relatives of officers, professional soldiers, non-commissioned officers, soldiers in the Ministry of Defense; relatives of workers and public employees in defense (under units with budget ensured by the state); relatives of officers, professional non-commissioned officers, cadets of the Public Security of the People, non-commissioned officers, soldiers serving limited terms in the Public Security of the People, police workers, and relatives of those doing cryptography work.

- Responsibility allowances for members of the Party committees at all levels according to Regulation 169-QD/TW in 2008; monthly allowances for activities of the Party committees at the provincial level according to Regulation 09-QD/VPTW in 2017.

- Operating costs of members of the People's Council at all levels.

- Support allowance funds for non-specialized activities in communes, wards, commune-level towns, villages, and residential clusters according to the state budget allocation.

- Besides the aforementioned content, the budget needs of provinces, and centrally-run cities, including the part funded by the state budget to implement:

+ Staff reduction policies, early retirement policies, retirement when reaching the age quotas for local management subjects according to the provisions of Decree 29/2023/ND-CP on staff reduction, Decree 26/2015/ND-CP stipulating policies for officials who do not meet the age requirements for re-election or appointment to positions in the Communist Party, the State, and political-social organizations, and instructions from competent authorities.

+ Additional allowance adjustment budget for retired commune officials is determined based on the actual number as of July 1, 2024, the additional allowance stipulated in Decree 75/2024/ND-CP and the guidance of the Ministry of Home Affairs on adjusting monthly allowances.

+ Additional budget (from the statutory pay rate of 1.49 million VND/month to the statutory pay rate of 1.8 million VND/month) to implement salary payments, allowances, and contributions for the additional number of teachers according to the Decision of the Central Organizing Committee on the allocation of staff in 2024.

(3) The budget needs for implementing allowance and subsidy policies calculated based on salary, rank, grade, or statutory pay rate issued by the Government of Vietnam, the Prime Minister of the Government of Vietnam, and guided by the ministries, central agencies after July 1, 2024 (if any) shall be compiled into the budget needs for implementing wage reform in 2024 and the source implementation according to the provisions of Circular 62/2024/TT-BTC.

(4) Central administrative agencies are working on abolishing special financial and income mechanisms according to Resolution 104/2023/QH15 and Resolution 142/2024/QH15, to be conducted according to Article 4 of Circular 62/2024/TT-BTC.

More details can be found in Circular 62/2024/TT-BTC which comes into force in Vietnam from August 20, 2024.

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