Guidance on Salary and Allowance Calculation for Officials according to the New Statutory Pay Rate, Effective from July 1, 2024 in Vietnam

Guidance on Salary and Allowance Calculation for Officials according to the New Statutory Pay Rate, Effective from July 1, 2024 in Vietnam​ (Image from Internet)

On July 5, 2024, the Minister of Home Affairs Vietnam issued Circular 07/2024/TT-BNV guiding the implementation of the statutory pay rate for salary and allowance beneficiaries in agencies, organizations, and public service providers of the Communist Party, the State, the Vietnam Fatherland Front, socio-political organizations, and associations.

1. Group of officials applying the new statutory pay rate calculation for salaries and allowances in Vietnam

Officials, public employees, and workers as specified in Clauses 1, 2, 3, 4, 5, 8, and 9 of Article 1 Circular 07/2024/TT-BNV will apply the new statutory pay rate calculation for salaries and allowances from July 1, 2024, specifically:

- Officials receiving salaries from the state budget working in the agencies of the Communist Party, the State, the Vietnam Fatherland Front, and socio-political organizations at the central level; in provinces, centrally-run cities; in districts, district-level towns, cities under a province, cities under a centrally-run city; and in special administrative-economic units.

- Public officers receiving salaries from the salary fund of public service providers as prescribed by law (including cases specified in Clause 19, Article 1 Law amending and supplementing several articles of the Law on Public Officials and Public Employees and the Law on Public Employees in 2019).

- Officials and public employees assigned by competent authorities to work at associations, non-governmental organizations of Vietnam, projects, and international organizations based in Vietnam while still receiving salaries according to the salary table issued with Decree 204/2004/ND-CP.

- Salary earners working within the staff allocation as assigned by competent authorities at associations assigned by the Communist Party, the State with tasks receiving state budget financial support in accordance with Decree 45/2010/ND-CP (amended and supplemented by Decree 33/2012/ND-CP).

- Officials at commune, ward, commune-level towns, and non-specialized personnel at the commune level, in hamlets, and residential groups as prescribed in Decree 33/2023/ND-CP.

- Individuals working under labor contract policies as prescribed in Decree 111/2022/ND-CP regarding contracts for certain types of work in administrative agencies and public service providers to whom the salary arrangements according to Decree 204/2004/ND-CP apply or are agreed upon in the labor contract.

- The following subjects are applied Circular 07/2024/TT-BNV to calculate and determine the level of social insurance contribution and benefits, and to resolve policies related to salaries as prescribed by law:

+ Officials and public employees studying, interning, working, receiving treatment, or convalescing (both domestically and internationally) who are on the payroll list of agencies of the Communist Party, the State, socio-political organizations, public service providers, and associations receiving state budget financial support for activities;

+ Individuals in the probationary or trial period (including commune-level officials in the probationary period) in agencies of the Communist Party, the State, socio-political organizations, public service providers, and associations receiving state budget financial support for activities;

+ Officials and public employees being temporarily suspended from work, detained, or under custody.

(Clause 1, Article 3 Circular 07/2024/TT-BNV)

2. Guidelines for calculating salaries and allowances for officials according to the new statutory pay rate from July 1, 2024 in Vietnam

Salaries and allowances for officials under section 1 will be based on the current salary coefficient and allowances as prescribed in documents by competent authorities of the Communist Party and the State on salary policies for officials, public employees, and armed forces, the statutory pay rate specified in Decree 73/2024/ND-CP to calculate the salary levels, allowances, and the amount of the reserved differential coefficient (if any) as follows:

- Formula for calculating salary:

Salary implemented from July 1, 2024 = Statutory pay rate of VND 2,340,000/month x Current salary coefficient

- Formula for calculating allowances:

+ For allowances calculated according to the statutory pay rate:

Allowance implemented from July 1, 2024 = Statutory pay rate of VND 2,340,000/month x Current allowance coefficient

+ For allowances calculated as a percentage of the current salary plus leadership allowance and seniority allowance beyond the scale (if any):

Allowance implemented from July 1, 2024 = [Salary implemented from July 1, 2024 + Leadership allowance implemented from July 1, 2024 (if any) + Seniority allowance beyond the scale implemented from July 1, 2024 (if any)] x Percentage of allowance as prescribed

+ For allowances specified by a specific monetary amount, the current regulations remain unchanged.

- Formula for calculating the monetary amount of the reserved differential coefficient (if any):

Monetary amount of the reserved differential coefficient implemented from July 1, 2024 = Statutory pay rate of VND 2,340,000/month x Current reserved differential coefficient (if any).

(Clause 1, Article 3 Circular 07/2024/TT-BNV)

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