Method of payment for the adjustment of the base salary according to Decree 24/2023/ND-CP in Vietnam

Method of payment for the adjustment of the base salary according to Decree 24/2023/ND-CP in Vietnam
Trần Thanh Rin

Method of payment for the adjustment of the base salary according to Decree 24/2023/ND-CP in Vietnam is specified in Circular 50/2023/TT-BTC dated 17/7/2023 issued by the Ministry of Finance.

Method of payment for the adjustment of the base salary according to Decree 24/2023/ND-CP in Vietnam

Method of payment for the adjustment of the base salary according to Decree 24/2023/ND-CP in Vietnam (Internet image)

On July 17, 2023, the Minister of Finance of Vietnam issued Circular 50/2023/TT-BTC guiding the determination of needs, sources, and spending methods, adjusting the base salary according to Decree 24/2023/ND-CP, and adjusting monthly allowances for commune cadres who have retired under Decree 42/2023/ND-CP.

Method of payment for the adjustment of the base salary according to Decree 24/2023/ND-CP in Vietnam

The method of payment for the adjustment of the base salary according to Decree 24/2023/ND-CP is specified in Article 6 ofCircular 50/2023/TT-BTC, specifically as follows:

- Ministries and central agencies shall direct and guide units to actively use prescribed funding sources to pay additional salaries for cadres, civil servants, public employees, and employees in accordance with the prescribed regime.

- For the provinces and centrally-run cities with larger sources of funding than the need for funding to adjust the base salary according to Decree 24/2023/ND-CP, proactively use the local salary reform sources to supplement funding sources for budget estimation units at their own level and the budgets of their subordinates that lack sources.

- For localities that need more funding to implement the regime under Decree 24/2023/ND-CP than the funding source prescribed in Circular 50/2023/TT-BTC:

+ While waiting for the competent authority to supplement funds, the superior budget shall temporarily provide funding for the inferior budget, which has not had enough sources. The localities shall send documents to the Ministry of Finance to temporarily provide funding for implementation. The amount of the provisionally allocated funding shall be reduced unless the competent authority provides sufficient funding for implementation according to regulations.

+ Budget-using units can actively use the assigned 2023 budget estimate and the remaining revenue according to the regime to promptly pay salaries, allowances, and additional allowances for subjects as prescribed in Circular 50/2023/TT-BTC; report to the superior governing body on the need for funds missing (if any) for handling according to regulations.

- Accounting and finalization: The accounting and settlement of funds for the implementation of salaries, allowances, and allowances for the subjects specified in Circular 50/2023/TT-BTC shall comply with the provisions of the State Budget Law and current legal documents.

Funding sources for adjusting the base salary in centrally affiliated cities in Vietnam

According to Clause 2, Article 3 of Circular 50/2023/TT-BTC, the funding source for adjusting the base salary according to Decree 24/2023/ND-CP of the provinces and centrally-run cities is:

(i) Using a savings of 10% of recurrent expenditure (excluding wages, salary-based allowances, and human expenses under the regime), the 2023 estimate has been assigned by the competent authority.

(ii) Using 70% source to increase local budget revenue in 2022 compared with the estimate assigned by the Prime Minister

This does not include:

+ Collection of land use levy, collection of lottery, equitization and divestment of state-owned enterprises under local management, collection of one-time land rent advanced by investors for compensation, ground clearance, and collection from handling of public property at agencies, organizations, and units decided by competent agencies to use for investment expenditures according to regulations;

+ Collecting money for the protection and development of rice land; entrance fees to monuments and world heritage sites;

+ Fees for using infrastructure, service works, and public utilities in the border gate area; environmental protection fees for mineral exploitation;

+ Environmental protection fee for wastewater; collecting from the public land fund; collecting yields and public property in the commune; and collecting rent, lease purchase, and sale of state-owned houses.

(iii) Use funds for wage reform that have not been used up until the end of 2022 (if any).

(iv) Use at least 40% of the proceeds left under the 2023 regime after deducting costs directly related to service provision and fee collection.

Particularly for the revenue from the provision of medical examination and treatment services, preventive medicine, and other medical services by public health facilities, at least 35% shall be used after deducting expenses directly related to service provision and fee collection.

The scope of deduction of collected numbers shall comply with the instructions at (iii).

More details can be found in Circular 50/2023/TT-BTC, effective as of August 31, 2023.

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