Who is eligible for an increase in base salary from July 1, 2023 according to Decree 24/2023/ND-CP in Vietnam?

Who is eligible for an increase in base salary from July 1, 2023 according to Decree 24/2023/ND-CP in Vietnam? (Internet image)

On May 14, 2023, the Government of Vietnam issued Decree 24/2023/ND-CP stipulating the base salary for cadres, civil servants, public employees, and the armed forces.

Who is eligible for an increase in base salary from July 1, 2023 according to Decree 24/2023/ND-CP in Vietnam?

Specifically, the people receiving salaries and allowances specified in Decree 24/2023/ND-CP include the following 09 subjects:

(1) Cadres and civil servants from central to district level are specified in Clauses 1 and 2, Article 4 of the Law on Cadres and Civil servants 2008 (amended in the Law amending a number of articles of the Law on Cadres and Civil servants and the Law on Public Employees in 2019).

(2) Commune-level cadres and civil servants specified in Clause 3, Article 4 of the Law on Cadres and Civil servants 2008 (amended in the Law amending a number of articles of the Law on Cadres and Civil servants and the Law on Public Employees in 2019).

(3) Officials in public non-business units as prescribed in the Law on Public Employees 2010 (amended in the Law amending a number of articles of the Law on Cadres and Civil servants and the Law on Public Employees in 2019).

(4) Persons who do jobs under the labor contract regime specified in the Government's Decree 111/2022/ND-CP on contracts for some types of work in administrative agencies and public non-business units in the cases where it is applicable.

Or there is an agreement in the labor contract to apply salary ranking according to Decree 204/2004/ND-CP of the Government on the salary regime for cadres, civil servants, public employees, and the armed forces.

(5) Those who work in the quotas of payrolls at associations are supported by the state budget for operating expenses according to the provisions of Decree 45/2010/ND-CP (amended and supplemented in Decree 33/2012/ND-CP).

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

(7) salaried officers and non-commissioned officers, non-commissioned officers, conscripts, public security workers, and contract workers of the People's Public Security.

(8) People working in cipher organizations.

(9) Part-time workers at commune, village, and residential levels.

Funding for the increase in base salary 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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