Vietnam: Statutory pay rate in 2022 and 03 things you need to know

Vietnam: Statutory pay rate in 2022 and 03 things you need to know (source: internet)

1. Employees on statutory pay rate in Vietnam

Employees on statutory pay rate in Vietnam include:

- Public officials and public employees from central echelon to district level prescribed in Clause 1 and Clause 2 Article 4 of Law on Cadres and Civil Servants 2008;

+ Cadres are Vietnamese citizens who are elected, approved and appointed to hold posts or titles for a given term of office in agencies of the Communist Party of Vietnam, the State, socio-political organizations at the central level, in provinces and centrally run cities (below collectively referred to as provincial level), in districts, towns and provincial cities (below collectively referred to as district level), included in the payrolls and salaried from the state budget.

+ Civil servants are Vietnamese citizens who are recruited and appointed to ranks, posts or titles in agencies of the Communist Party of Vietnam, the State, socio-political organizations at the central, provincial and district levels; in People’s Army agencies and units, other than officers, professional military personnel and defense workers; in People’s Police offices and units other than officers and professional non-commissioned officers, and in the leading and managerial apparatuses of public non-business units of the Communist Party of Vietnam, the State and socio-political organizations (below collectively referred to as public non-business units), included in the payrolls and salaried from the state budget; for civil servants in the leading and managerial apparatuses of public non-business units, they are salaried from the salary funds of these units according to law.

- Public officials and public employees at commune level prescribed in Clause 3 Article 4 of Law on Cadres and Civil Servants 2008;

Cadres of communes, wards and townships (below collectively referred to as commune level) are Vietnamese citizens who are elected to hold posts for a given term of office in People’s Council standing bodies and People’s Committees, as Party secretaries and deputy secretaries, and as heads of socio-political organizations. Commune-level civil servants are Vietnamese citizens who are recruited to hold specialized titles in commune-level People’s Committees, included in the payrolls and salaried from the state budget.

- Public employees working in public sector entities prescribed in Law on Public Employees 2010.

- Contract employees who are paid as prescribed in Decree 204/2004/ND-CP, including: Contract employees in agencies of the Communist Party, the Government, socio-political organizations prescribed in Decree No. 68/2000/ND-CP and Decree 161/2018/ND-CP.

- Employees on state regular payroll in state-funded associations as defined in Decree 45/2010/ND-CP 

- Commissioned officers, professional soldiers, non-commissioned officers, soldiers and national defense workers and public employees, contract employees in the People's Army of Vietnam.

- Commissioned officers, non-commissioned officers on payroll, non-commissioned officers, police officers, public security workers and contract employees in the People’s Police of Vietnam.

- Employees in cryptography organizations.

- Part-time workers in communes, hamlets or neighborhoods.

(Article 2 of Decree 38/2019/ND-CP)

2. What is the purpose of statutory pay rate in Vietnam?

According to Article 3 of Decree 38/2019/ND-CP, the statutory pay rate is the basis for:

- Determining the levels of salaries in payrolls, allowances and other benefits as per the law with regard to individuals as defined Section (1)

- Determining subsistence allowances as per the law;

- Determining contributions and benefits concerning the statutory pay rate.

3. Statutory pay rate in 2022 in Vietnam

According to the provisions of Clause 2, Article 3 of Decree 38/2019/ND-CP, from July 1, 2019, the statutory pay rate is VND 1,490,000 per month.

The Government shall request the National Assembly to consider adjusting statutory pay rate in conformity with the capacity of the state budget, consumer price index and national economic growth rate.

Diem My

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