The Differential in Salaries of Officials and Public Employees

Decree 47 stipulates the subjects entitled to salaries and allowances, including:

- Officials and public employees, public employees in public service providers;- Persons working under labor contract policies with salaries classified according to salary policies for officials, public employees, and armed forces including:- Persons working under labor contract policies in the agencies and units of the Communist Party, the State, and socio-political organizations;- Persons working under labor contract policies within the number of workers approved by the competent authority in public non-business units as decided by the Prime Minister of the Government of Vietnam.- Persons working within the staffing quotas in associations supported by state budget for operational funding;- Officers, professional soldiers, non-commissioned officers, conscripts and defense workers, public employees, laborers on contract within the Vietnam People’s Army;- Officers, salaried non-commissioned officers, non-commissioned officers, conscripts, public security workers and laborers on contract in the People’s Public Security;- Persons working in cryptographic organizations;- Non-specialized activists at the commune, village, and residential group level.

Decree 47 stipulates that from May 1, 2016, the statutory pay rate is 1,210,000 VND/month and is used as the basis for calculating the following amounts:

- Calculating salaries in salary tables, allowance levels, and implementing other policies;- Calculating operational allowances, subsistence allowances according to the provisions of law;- Calculating deduction amounts and policies enjoyed according to the statutory pay rate.

Subjects with a salary coefficient of 2.34 or lower, who have received an additional salary increase according to Decree 17/2015/ND-CP:

The differential amount to be enjoyed is calculated as = April salary – May salary

On the condition that: April salary > May salary. In which:

- April salary = Total salary according to rank, grade, position, title, any salary allowances (if any), and additional salary according to Decree 17/2015/ND-CP calculated according to the statutory pay rate of 1,150,000 VND/month.- May salary = Total salary according to rank, grade, position, title, and any salary allowances (if any) calculated according to the statutory pay rate of 1,210,000 VND/month.

Thus, in addition to the May salary, the subjects mentioned above are also entitled to an additional differential amount. This differential amount is not included in the calculation of social insurance, health insurance, unemployment insurance, and various types of salary allowances.

More details can be found in Decree 47/2016/ND-CP effective from July 15, 2016, replacing Decree 17/2015/ND-CP and Decree 66/2013/ND-CP.

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