Salary-related expenses not subject to 5% reduction in Vietnam in 2024

Salary-related expenses not subject to 5% reduction in Vietnam in 2024

According to Resolution 119/ND-CP, the Government of Vietnam stipulates the saving, reduction of 5% regular expenses of the state budget; revenue from fees deducted, income from public services, and other retained earnings according to policies assigned at the beginning of 2024 for regular spending by budgetary units under ministries, central agencies, and People's Committees of provinces and centrally-affiliated cities after excluding the following 04 items:

(1) Expenses on salaries, salary-based payments, and human-related expenses.

(2) Expenses according to international commitments;

(3) Funds for performing procurement tasks and repairs under contracts for supplying goods and services signed before the Government of Vietnam promulgated Resolution 119/ND-CP (August 07, 2024) and continue to be implemented in 2024; packages already approved for contractor selection results before August 07, 2024.

(4) Funds for performing specific, important political and professional tasks that are not subject to reduction.

Among those, expenses on salaries, salary-based payments, and human-related expenses in item (1) are not subject to the 5% saving and reduction in 2024, including:

- 10% saving for salary reform estimated for 2024 already assigned by the competent authority according to regulations;

- Payments for salaries, allowances, contributions based on salaries, salary-related expenses;

- Funds for implementing social security policies already decided by the competent authority; human-related expenses according to policies (including: funds for streamlining payroll; scholarships, policies for students; aid for individuals in difficulty; meal allowances, bonuses according to regulations, expert hiring fees, wages, and other human-related expenses; wages and other human-related expenses for statistical surveys, implementation of policies on forest protection and development; specific allowances for each sector either in cash or in-kind; funds for compensatory fee exemptions and reductions according to regulations; royalties, literary and artistic awards...).

See detailed content at Resolution 119/ND-CP dated August 07, 2024.

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