What are the sources for funding for the increase in base salary to 1.8 mil VND from July 1, 2023 in Vietnam?

What are the sources for funding for the increase in base salary to 1.8 mil VND from July 1, 2023 in Vietnam? (Internet image)

1. To increase base salary to 1.8 million from July 1, 2023 in Vietnam

Specifically, officially increase the base salary to 1.8 million from July 1, 2023, for cadres, civil servants, public employees, wage earners, allowances, and employees (collectively referred to as wage earners and allowances). working in agencies, organizations, non-business units of the Party, State, Vietnam Fatherland Front, socio-political organizations, and associations supported by the state budget to operate at the central level , in provinces and centrally run cities (provincial level), in districts, urban districts, towns, provincial cities, centrally run cities (district level), in communes, wards, and towns (commune level), in special administrative-economic units, and in the armed forces.

What are the sources for funding for the increase in base salary to 1.8 mil VND from July 1, 2023 in Vietnam?

According to Decree 24/2023/ND-CP, funding for the increase in base salary from July 1, 2023, is taken from the following sources:

- Ministries, ministerial-level agencies, government-attached agencies, and other central agencies:

+ Using 10% of savings in recurrent expenses (except for salaries, salary-based allowances, wages, and human expenses according to the regime) estimated in 2023, increased compared to the estimate in 2022, that have been assigned by a competent authority;

+ Fee-collecting administrative agencies and public non-business units shall make deductions to create a source of salary reform from a part of the retained fee revenue according to the prescribed regime after deducting expenses directly related to service provision and fee collection activities;

+ Use the unused source of salary reform in 2022 (if any).

- Provinces and cities directly under the Central Government:

+ Using 10% of savings in recurrent expenditures (except for salaries, salary-based allowances, wages, and human expenses according to the regime) estimated in 2023 already assigned by competent authorities;

+ Using 70% to increase local budget revenues compared to the estimate (excluding: collection of land use fees; construction lottery; collection of equity and divestment of state-owned enterprises under local management; one-time land rent advance by investors for compensation, site clearance, and collection from handling of public property at agencies, organizations, and units decided by competent authorities to pay for investment according to the law;

Collect money to protect and develop rice land; entrance fees to monuments and world heritage sites; fees for using infrastructure works, service works, and public utilities in the border gate area; environmental protection fees for mineral exploitation; environmental protection fees for wastewater; collect from the public land fund, collect yields and public property in the commune; and collect rent, lease purchase, and sale of state-owned houses) assigned by the Prime Minister;

+ Use the unused source of salary reform in 2022 (if any);

+ Use at least 40% of the collected amount left under the 2023 regime after deducting expenses directly related to service provision and fee collection activities. Particularly for the revenue from the provision of medical examination and treatment services, preventive medicine, and other medical services by public medical establishments, at least 35% shall be used. The scope of deduction of retained earnings is carried out according to the guidance of the Ministry of Finance on the needs and sources of wage reform in 2023.

Central budget to supplement the missing funding due to the adjustment of the base salary in 2023 for ministries, ministerial-level agencies, government-attached agencies, other central agencies, provinces, and centrally-run cities after implementing the above provisions.

Funds for the implementation of wage reform for public employees and employees in group 1 and group 2 public non-business units shall be covered by the units themselves according to the provisions of Decree 60/2021/ND-CP and documents amending and replacing Decree 60/2021/ND-CP (if any).

Decree 24/2023/ND-CP takes effect from July 1, 2023.

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