Statutory pay rate for officials, public employees and armed forces in Vietnam as of July 01, 2024

Statutory pay rate for officials, public employees and armed forces in Vietnam as of July 01, 2024 (Internet image)

On 30/6/2024, Hanoi issued Decree 73/2024/ND-CP stipulating statutory pay rate and bonus regime for officials, public employees, and the armed forces.

Statutory pay rate for officials, public employees, and armed forces in Vietnam as of July 01, 2024

Article 3 of Decree 73/2024/ND-CP stipulates the statutory pay rate for officials, public employees and armed forces in Vietnam as follows:

* Base statutory pay rate used as a basis for:

• Calculating salaries in the salary tables, allowances, and implementing other regimes as prescribed by law for the subjects stipulated in Article 2 of Decree 73/2024/ND-CP;

• Calculating operation fees, subsistence fees as prescribed by law;

• Calculating deductions and regimes enjoyed according to the statutory pay rate.

* From July 01, 2024, the statutory pay rate is 2,340,000 VND/month.

* For agencies and units currently applying special financial and income mechanisms at central levels: Preserve the difference between salaries and additional monthly income in June 2024 of officials and public employees with the salary from July 01, 2024 after amending or abolishing the special financial and income mechanisms. During the period before amending or abolishing these mechanisms, implement monthly salaries and additional income based on the 2,340,000 VND/month statutory pay rate from July 01, 2024, ensuring it does not exceed the salaries and additional income enjoyed in June 2024 (excluding salaries and additional income due to adjustment of salary coefficients upon rank or grade promotion). If, according to the above principle, the salary and additional income from July 01, 2024 according to the special mechanism is lower than the salary as per the general regulations, then implement the general salary regime.

* The Government adjusts statutory pay rate after reporting to the National Assembly for consideration and decision based on the state budget's capacity, consumer price index, and the country's economic growth rate.

Funding for statutory pay rate for officials, public employees, and armed forces in Vietnam

Article 5 of Decree 73/2024/ND-CP stipulates the budget for implementing the statutory pay rate for officials, public employees, and the armed forces as follows:

* Ministries, central agencies, government-affiliated agencies, and other central agencies:

• Utilize 10% savings in regular expenditure (excluding salaries, allowances, salary-like payments, and personnel-related expenditures under the regime) in the 2024 budget compared to the 2023 budget allocation authorized;

• Utilize at least 40% of the retained earnings after costs directly related to service provision and fees collection in 2024. For earnings from public medical services, preventive health services, and other medical services at public health facilities, utilize at least 35% after deducting direct service and fees collection costs;

• Utilize unused wage reform funds from 2023 carried forward (if any).

* Provinces and centrally-run cities:

• Utilize 10% savings in regular expenditure (excluding salaries, allowances, salary-like payments, and personnel-related expenditures under the regime) in the 2024 budget compared to the 2023 budget allocation authorized;

• Utilize 10% savings in regular expenditure (excluding salaries, allowances, salary-like payments, and personnel-related expenditures under the regime) in the 2023 budget allocation;

• Utilize 50% of the increased local budget revenue in 2024 compared to the 2023 plan assigned by the Prime Minister of Vietnam (excluding: land use fees; lottery; state-owned enterprise equitization and capital divestment under local management; one-time land lease advance by investors for compensation and site clearance; and proceeds from handling public property at entities decided to be used for investment expenditure by competent authorities; rice land protection and development fees; fees for visiting world heritage sites, service, infrastructure, public utility projects in border gates area; mineral exploitation environmental protection fees; wastewater environmental protection fees; common land benefits and common property proceeds at communes; and rental, lease purchase, and sale of state-owned houses);

• Utilize 70% of the increased local budget revenue in 2023 compared to the plan assigned by the Prime Minister of Vietnam (excluding: land use fees; lottery; state-owned enterprise equitization and capital divestment under local management; one-time land lease advance by investors for compensation and site clearance; and proceeds from handling public property at entities decided to be used for investment expenditure by competent authorities; rice land protection and development fees; fees for visiting world heritage sites, service, infrastructure, public utility projects in border gates area; mineral exploitation environmental protection fees; wastewater environmental protection fees; common land benefits and common property proceeds at communes; and rental, lease purchase, and sale of state-owned houses);

• Utilize unused wage reform funds from 2023 carried forward (if any);

• Utilize at least 40% of the retained earnings after costs directly related to service provision and fees collection in 2024. For earnings from public medical services, preventive health services, and other medical services at public health facilities, utilize at least 35%.

* Central government supplements the missing budget due to statutory pay rate adjustments and the 2024 bonus regime for ministries, central agencies, government-affiliated agencies, other central agencies, and provinces, centrally-run cities after applying the provisions of Clauses 1 and 2 of Article 5 of Decree 73/2024/ND-CP.

* Budget for wage reform and bonus regime implementation for public employees, workers in public service providers Group 1, Group 2 as per self-sufficiency scheme in Decree 60/2021/ND-CP defining financial autonomy for public service providers and subsequent amendments, supplements, replacements (if any).

More details can be found in Decree 73/2024/ND-CP, which comes into force in Vietnam from July 01, 2024.

To Quoc Trinh

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