Increase statutory pay rate starting from July 1, 2017, is one of the important issues mentioned in Resolution 27/2016/QH14 of the National Assembly on the state budget estimate for 2017. To implement this content, the Ministry of Home Affairs has submitted a proposal regarding the issuance of a Decree by the Government of Vietnam stipulating the statutory pay rate for officials and public employees, as well as the armed forces.
Article table of contents
According to Resolution 27/2016/QH14, the statutory pay rate is adjusted from 1,210,000 VND/month to 1,300,000 VND/month. The adjustment of pensions, social insurance allowances, and preferential allowances for people with meritorious services will increase in line with the statutory pay rate from July 1, 2017.
The central budget ensures funding for the adjustment of pensions, social insurance allowances (for beneficiaries guaranteed by the state budget), and preferential allowances for people with meritorious services; it supports part of the additional salary for some localities with difficult budgets that cannot balance the sources as per the regulations of the Government of Vietnam.
The draft Decree is published along with the Draft Submission stipulating the statutory pay rate applicable to officials and public employees, salary recipients, and allowances and workers in agencies, organizations, and public service units of the Communist Party, the State, socio-political organizations, and associations supported by the state budget for activities at the central level, in provinces, centrally-run cities, in districts, towns, district-level cities, provincial-level cities, centrally-run cities (district level), in communes, wards, commune-level towns (commune level), in special administrative-economic units, and armed forces.
Subjects eligible for salary and allowances
Salary and allowance recipients include the following subjects:
- Officers and officials from the central to district level according to Clauses 1 and 2, Article 4 of the Law on Officers and Officials 2008; commune-level officials according to Clause 3, Article 4 of the Law on Officers and Officials 2008.- Public employees in public service providers pursuant to the Law on Public Employees 2010.- Individuals working under labor contract policies with salaries determined according to Decree 204/2004/ND-CP, including:- Individuals working under labor contract policies in agencies and units of the Communist Party, the State, and socio-political organizations pursuant to Decree 68/2000/ND-CP;- Individuals working under labor contract policies within the employed count approved by competent authorities at public service units as per the Prime Minister's decision of the Government of Vietnam.- Individuals working within the staffing quota in associations supported by the state budget for activities as stipulated in Decree 45/2010/ND-CP;- Officers, professional soldiers, non-commissioned officers, compulsory soldiers, workers, and national defense public employees, and contract laborers within the Vietnam People's Army.- Officers, salary-earning non-commissioned officers, non-commissioned officers, compulsory soldiers, workers, and contractual laborers within the Vietnam People's Public Security.- Individuals working in the cryptographic organization.- Non-specialized activists at the commune level, in hamlets, and residential groups.
Application of the new statutory pay rate from July 1, 2017
From July 1, 2016, the base salary rate is 1,300,000 VND/month. The statutory pay rate is used as the basis:
- To calculate the salary in salary scales, allowances, and implement other policies in accordance with the law for the above-mentioned subjects;- To calculate operation fees and living expenses as per legal regulations;- To calculate the deductions and policies enjoyed according to the statutory pay rate.
If approved, the above decree will take effect from July 1, 2017, replacing Decree 47/2016/ND-CP which stipulates the statutory pay rate for officials and public employees and the armed forces.
