Statutory Pay Rate Levels

The base salary rate is used as a basis for:

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

State agencies, public service providers, state-owned enterprises, etc., apply the statutory pay rate for the following subjects:

- Officials, officers from the Central Government to the communal level.- Public employees in public service providers.- Individuals working under labor contract policies in agencies and units of the Communist Party, the State, and socio-political organizations.

The statutory pay rate is adjusted based on the state budget capacity, the consumer price index, and the country's economic growth rate, and therefore, does not change in a fixed cycle.

According to the provisions of Decree 47/2016/ND-CP, from May 1, 2016, the base salary rate is 1,210,000 VND/month.

However, it is necessary to distinguish the statutory pay rate from the regional minimum wage. The regional minimum wage is the lowest wage used as the basis for enterprises (DN) and employees to negotiate and pay wages and is applied to employees working at organizations such as enterprises established, managed, and operated under the Law on Enterprises; cooperatives, unions of cooperatives, cooperative groups, farms, households, individuals, and other organizations in Vietnam that employ laborers under labor contracts; foreign agencies, international organizations, foreign individuals in Vietnam that hire employees under labor contracts...

However, in some cases, employees in state agencies can still negotiate to receive wages according to regional minimum wage policies such as:

- Individuals working under labor contract policies in public service providers;- Individuals working in staffing quotas supported by the state budget in specific associations;- Officers, professional soldiers, non-commissioned officers, conscripts, defense workers, and public employees and contract laborers in the Vietnam People's Army;- Officers, salaried non-commissioned officers, non-commissioned officers and soldiers serving fixed terms; workers, staff in public security, and contract laborers in the People's Public Security;- Individuals working in cipher organizations;- Non-specialized individuals working at the communal, village, and urban neighborhood levels.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE