What is statutory pay rate? Statutory pay rate in Vietnam, 2022

Statutory pay rate only applied to certain entities according to the provisions of law. So What is statutory pay rate? Who can apply the statutory pay rate and what is the current statutory pay rate?


What is statutory pay rate? Statutory pay rate in Vietnam, 2022 (Illustration)

1. What is statutory pay rate in Vietnam?

According to Clause 1, Article 3 of Decree 38/2019/ND-CP, the statutory pay rate is the basis for:

a) Determining the levels of salaries in payrolls, allowances and other benefits as per the law with regard to individuals as defined in Article 2 of Decree 38/2019/ND-CP;

b) Determining subsistence allowances as per the law;

c) Determining contributions and benefits concerning the statutory pay rate.

2. Regulated entities in Vietnam

Article 2 of Decree 38/2019/ND-CP stipulates 09 cases eligible for the applycation of statutory pay rate as follows:

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

- Public officials and public employees at commune level prescribed in Clause 3 Article 4 of Law on public officials and public employees 2008.

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

- Contract employees who are paid as prescribed in Government's Decree 204/2004/ND-CP dated December 14, 2004 on pay policy for public officials and public employees and armed forces’ personnel, including: Contract employees in agencies of the Communist Party, the Government, socio-political organizations prescribed in Decree 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.

3. Current statutory pay rate in Vietnam

According to 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.

Statutory pay rate will be considered to adjust based on the capacity of the state budget, consumer price index and national economic.

(Statutory pay rate for entities receiving salary or military rank allowance from the state budget in agencies and units under the Ministry of National Defense of Vietnam is guided by Circular 79/2019/TT-BQP)

Nhu Mai

 

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