Statutory Pay Rate for Officials and Public Employees and Armed Forces

From July 1, 2018, the statutory pay rate uniformly applied is 1,390,000 VND/month.

The statutory pay rate is used as a basis for:

- Calculating salaries in pay scales, allowances, and implementing other policies in accordance with the law for specified subjects;- Calculating operational fees and living expenses as prescribed by law;- Calculating deductions and benefits based on the statutory pay rate.

According to Decree 72/2018:

- Ministries, ministerial-level agencies, government-attached agencies, and other central agencies, based on the allocated state budget estimates, shall continue to implement policies to create resources for wage reform by thoroughly saving expenses in connection with the reorganization of the apparatus, streamlining staff, and promoting financial autonomy of public service providers, striving to increase revenue sources as prescribed and using the unused funds for wage reform in 2017 carried over (if any) to ensure self-balance of the increased expenditure requirements due to the adjustment of the 2018 statutory pay rate.- Provinces, centrally-run cities:- Use 10% savings on regular expenditure (excluding salary expenses, allowances based on salary, salary-like expenses, and human-related expenditure according to policies) from the 2018 budget estimate compared to the 2017 estimate allocated by competent authorities;- Use 50% of the increased local budget revenue (excluding land levy revenue and lottery revenue) implemented compared to the 2017 estimate allocated by the Prime Minister of the Government of Vietnam;- Utilize the unused wage reform funds from 2017 carried over (if any);- Use the remaining funds (if any) after ensuring the needs for wage adjustment up to the 1,300,000 VND/month statutory pay rate, those sources are:- 10% savings on regular expenditure (excluding salary expenses, allowances based on salary, salary-like expenses, and human-related expenditure according to policies) according to the estimate allocated by competent authorities in 2017, combined with thorough expense saving associated with reorganization of the apparatus, staff streamlining, and promoting financial autonomy of public service providers.- A portion of retained revenue according to policies of administrative agencies, public service providers.- 50% of increased local budget revenue (excluding land levy revenue and lottery revenue) from the 2018 budget estimate compared to the 2017 estimate allocated by the Prime Minister of the Government of Vietnam.- For some financially struggling localities, after implementing the regulations mentioned above, if there is still a shortage of resources for wage reform in 2018, the central budget will supplement the shortfall for the localities to implement.

See more Decree 72/2018/ND-CP effective from July 1, 2018.

-Thao Uyen-

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