Salary equivalents not subject to 5% reduction in Vietnam in 2024

Salary equivalents not subject to 5% reduction in Vietnam in 2024

According to Resolution No. 119/NQ-CP, the Government of Vietnam stipulates the saving and reduction of 5% of the state budget recurrent expenditures; retained revenues, public revenues, and other revenues permitted for retention according to regulations assigned at the beginning of 2024 for recurrent expenditures of estimate units of ministries, central authorities, and People’s Committees of provinces and centrally affiliated cities after excluding the following 4 amounts: 

(1) Salaries, salary equivalents, and expenditures on humans. 

(2) Expenditures under international commitments; 

(3) Funding for the implementation of tasks of procurement and repair under contracts for the supply of goods and services that are concluded before the Government of Vietnam promulgates Resolution No. 119/NQ-CP (August 7, 2024) and to be continued in 2024; bidding packages with approved results of the selection of contractors before August 7, 2024. 

(4) Funding for the implementation of several political tasks and specific and important specialties not subject to the reduction. 

The salaries, salary equivalents, and expenditures on humans prescribed in (1) that are not subject to the 5% saving and reduction in 2024 are specifically as follows: 

- The 10% saving estimate used for salary reform in 2024 as assigned by competent authorities according to regulations;

- Salaries, allowances, salary-based contributions, and salary equivalents; 

- Funding for the implementation of regulations and policies on social security decided by competent authorities; expenditures on humans under regulations (including funding for payroll downsizing; scholarships, benefits, and policies for students; expenditures on support for educated persons with difficult circumstances; wages and expenditures on humans of statistical surveys and implementation of policies on forest protection and development; specific allowances of each industry, including cash and items; expenditures on tuition reduction, exemption as per regulation; funds for royalties and prizes concerning literature and art, etc.).

See more details in Resolution No. 119/NQ-CP, dated August 7, 2024. 

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