Increase in statutory pay rate in Vietnam as of July 1, 2024

Increase in statutory pay rate in Vietnam as of July 1, 2024

From July 01, 2024, the statutory pay rate is 2,340,000 VND/month.

The statutory pay rate is used as a basis:

• To calculate the salary levels in the salary tables, allowances, and other regimes in accordance with the law for the subjects specified in Article 2 of Decree 73/2024/ND-CP;

• To calculate the operation fees and subsistence allowances according to the law;

• To calculate deductions and benefits based on the statutory pay rate.

For agencies and units currently applying specific financial mechanisms and special income at the central level: Continue to reserve the difference between the salary and additional income of June 2024 for cadres, officials, and public employees with the salary from 01 July 2024 after amending or abolishing special financial mechanisms and income. In the period before these mechanisms are amended or abolished, apply the monthly salary and additional income calculated based on the statutory pay rate of 2,340,000 VND/month from 01 July 2024, ensuring it does not exceed the salary and additional income of June 2024 (excluding the salary and additional income due to the adjustment of salary coefficients when upgrading grades or levels). If based on this principle, if the salary and additional income from 01 July 2024 under the special mechanism are lower than the salary under the general regulations, then apply the salary regime according to the general regulations.

The Government of Vietnam adjusts the statutory pay rate after reporting to the National Assembly for consideration and decision-making, in line with the state budget capabilities, consumer price index, and national economic growth rate.

Decree 73/2024/ND-CP takes effect from July 01, 2024.

Decree 24/2023/ND-CP prescribing statutory pay rate for officials, public employees and the armed forces in Vietnam. expires from July 01, 2024.

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