To increase statutory pay rate in Vietnam to VND 1.8 million/month from July 01, 2023

This Decree provides statutory pay rates applicable to officials and public employees, individuals receiving wages, allowances, and workers (collectively referred to as wage and allowance beneficiaries) working in agencies, organizations, and public service providers of the Communist Party, the State, the Vietnam Fatherland Front, socio-political organizations, and socio-political associations supported by the state budget for operational funding at the central level, province, centrally affiliated cities (provincial level), counties, districts, district-level towns, centrally affiliated cities, and commune-level towns (communal level), specialized administrative-economic zones, and the armed forces.

9 Applicable Subjects

The wage and allowance beneficiaries in Vietnam  regulated by this Decree include:

1. Officials from the central to county level as stipulated in Clauses 1 and 2 of Article 4 of the Law on Public Officials and Civil Servants 2008 (amended and supplemented by the Law on Amending and Supplementing Certain Provisions of the Law on Public Officials and Civil Servants and the Law on Public Employees 2019).

2. Officials at the communal level as stipulated in Clause 3, Article 4 of the Law on Public Officials and Civil Servants 2008 (amended and supplemented by the Law on Amending and Supplementing Certain Provisions of the Law on Public Officials and Civil Servants and the Law on Public Employees 2019).

3. Employees at public service providers as stipulated by the Law on Public Employees 2010 (amended and supplemented by the Law on Amending and Supplementing Certain Provisions of the Law on Public Officials and Civil Servants and the Law on Public Employees 2019).

4. Individuals working under employment contract policies as stipulated by Decree No. 111/2022/ND-CP of the Government on contracts for certain types of work in administrative agencies and public service providers in cases where wage grading according to Decree No. 204/2004/ND-CP on wage policies for officials, public employees, and armed forces is applied or agreed upon in the labor contract.

5. Individuals working within the staff allocation of socio-political organizations supported with operating funds from the state budget according to Decree No. 45/2010/ND-CP (amended and supplemented by Decree No. 33/2012/ND-CP).

6. Officers, professional soldiers, non-commissioned officers, soldiers, defense workers, and contract labor within the Vietnam People's Army.

7. Officers, salaried non-commissioned officers, non-commissioned officers, conscripted soldiers, police workers, and contract labor within the People's Police.

8. Individuals working in cryptographic organizations.

9. Non-specialized individuals working at the communal level, village, and neighborhood level.

From July 1, 2023, the statutory pay rate in Vietnam is 1.8 million VND/month

The Decree clearly states that the statutory pay rate is used as a basis for: Calculating wages in salary scales, allowances, and implementing other policies according to legal provisions for the applicable subjects; calculating operational and living expenses according to legal provisions; calculating deductions and policies based on the statutory pay rate.

The Government continues to implement the special financial and income mechanisms for agencies and units implementing special financial and income mechanisms at the central level, as stipulated by competent authorities for certain state administrative agencies, until comprehensive wage policy reforms are implemented according to Resolution No. 27-NQ/TW dated May 21, 2018, of the Seventh Conference of the Central Executive Committee, Twelfth Session; the monthly salary and additional income are calculated according to the statutory pay rate of 1.8 million VND/month starting from July 1, 2023, under the special mechanism that ensures it does not exceed the average salary and additional income in 2022 (excluding the part of salary and additional income adjusted by wage coefficient upon promotion or grade elevation).

The Government of Vietnam presents to the National Assembly the adjustment of the statutory pay rate in line with the state budget's capabilities, consumer price index, and the country's economic growth rate.

Implementation Funding

Ministries, ministerial-level agencies, agencies under the Government, and other central agencies:

a) Utilize 10% of the savings from recurrent expenses (excluding expenses on wages, allowance supplements, expenses with salary characteristics, and human-related expenses according to policies) in the 2023 estimate compared to the 2022 estimate assigned by competent authorities;

b) Administrative agencies and public service providers that collect fees implement the creation of sources for reforming wages from a portion of the collected fees retained according to policy regulations after deducting expenses directly related to service provision and fee collection;

c) Use the unused wage reform funds from 2022 transferred forward (if any).

Provinces and centrally administered cities:

a) Utilize 10% of the savings from recurrent expenses (excluding expenses on wages, allowance supplements, expenses with salary characteristics, and human-related expenses according to policies) in the 2023 estimate assigned by competent authorities;

b) Utilize 70% of the local budget revenue increase compared to the estimate (excluding: land levy; lottery; proceeds from the divestment and equitization of locally managed state enterprises; prepaid one-time land rental for compensation, clearance; proceeds from handling public assets at agencies, organizations, units decided to be used for investment according to regulations; proceeds from the protection and development of rice cultivation land; entrance fees from historical, world heritage sites; bridge, road, ferry, seaport charges; environmental protection charges for mineral extraction and wastewater; revenues from communal public land and communal public property; rental, lease-purchase, sale of state-owned houses) granted by the Prime Minister;

c) Use the unused wage reform funds from 2022 transferred forward (if any);

d) Use a minimum of 40% of the revenue retained according to the policies in 2023 after deducting expenses directly related to service delivery and fee collection. Particularly for revenues from medical examination, treatment services, preventive medicine, and other health services of public health establishments, a minimum of 35% is used. The range of retained revenues is implemented according to the guidelines of the Ministry of Finance regarding the needs and resources for implementing wage reform in 2023.

The central budget supplements the financial resources needed due to the adjustment of the statutory pay rate in 2023 for Ministries, ministerial-level agencies, agencies under the Government, other central agencies, and provinces, and centrally administered cities after the implementation of the above provisions.

The funding for the wage reform of public employees and workers in groups 1 and 2 public service providers is ensured by the units themselves according to Decree No. 60/2021/ND-CP on the financial autonomy mechanism of public service providers and documents amending, supplementing, and replacing Decree No. 60/2021/ND-CP (if any).

This Decree comes into effect in Vietnam from July 1, 2023.

Khanh Linh

According to the Government of Vietnam Electronic Information Portal

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