Ministry of Home Affairs proposes to increase basic salary for 9 groups of subjects

Adjusting the basic salary is very necessary.

The Ministry of Home Affairs said that, implementing Resolution No. 70/2018/QH14 dated November 9, 2018 of the National Assembly on the state budget estimate for 2019, the Government issued Decree No. 38/2019/ND-CP dated May 9, 2019 adjusting the basic salary from VND 1,390,000/month to VND 1,490,000/month (an increase of 7.19%) from July 1, 2019.

From 2020 to present, due to the adverse impact of many domestic and international factors, especially the impact of the COVID-19 pandemic, there have been no conditions to continue adjusting the basic salary level according to the provisions of Clause 3, Article 3 of Decree No. 38/2019/ND-CP mentioned above and to implement salary reform according to Resolution No. 27-NQ/TW dated May 21, 2018 of the 7th Central Conference, Session XII.

Accordingly, the basic salary of 1,490,000 VND/month will remain unchanged from July 1, 2019 to present.

Compared to the regional salary of employees in the enterprise sector, the salary of VND 1,490,000/month (applied to those receiving budget salary) only reaches 37.89% of the average regional minimum wage in 2022 (VND 3,932,500/month), leading to many difficulties in the lives of cadres, civil servants, public employees and armed forces.

Therefore, the development of a Government Decree adjusting the basic salary from VND 1,490,000/month to VND 1,800,000/month (an increase of 20.8%, effective from July 1, 2023) is necessary to contribute to improving the lives of cadres, civil servants, public employees and armed forces.

9 subjects are eligible for basic salary increase

This Decree stipulates the basic salary level applicable to cadres, civil servants, public employees, salary and allowance earners and employees (hereinafter referred to as salary and allowance earners) working in agencies, organizations and public service units of the Party, the State, the Vietnam Fatherland Front, socio-political organizations and associations receiving state budget support for their operations at the central level, in provinces and centrally run cities (provincial level), in districts, towns, provincial cities, and centrally run cities (district level), in communes, wards and towns (commune level), in special administrative-economic units and the armed forces.

People receiving salaries and allowances prescribed in Article 1 of this Decree include:

Firstly, cadres and civil servants from the central to district level are specified in Clause 1 and Clause 2, Article 4 of the Law on Cadres and Civil Servants 2008 (amended and supplemented in the Law amending and supplementing a number of articles of the Law on Cadres and Civil Servants and the Law on Public Employees 2019).

Second, commune-level cadres and civil servants are specified in Clause 3, Article 4 of the 2008 Law on Cadres and Civil Servants (amended and supplemented in the Law amending and supplementing a number of articles of the Law on Cadres and Civil Servants and the Law on Public Employees in 2019).

Third, civil servants in public service units as prescribed in the Law on Civil Servants 2010 (amended and supplemented in the Law on amending and supplementing a number of articles of the Law on Cadres, Civil Servants and the Law on Civil Servants 2019).

Fourth, people working under labor contracts in agencies, organizations, and units of the Party, the State, the Vietnam Fatherland Front, socio-political organizations, and armed forces (army, police, and cryptography) as prescribed in Decree No. 111/2022/ND-CP dated December 30, 2022 of the Government on contracts for certain types of work in administrative agencies and public service units are being classified according to Decree No. 204/2004/ND-CP dated December 14, 2004 of the Government on salary regimes for cadres, civil servants, public employees, and armed forces.

Fifth, employees working within the payroll quota in associations are supported by the state budget for operating expenses as prescribed in Decree No. 45/2010/ND-CP dated April 21, 2010 of the Government regulating the organization, operation and management of associations.

Sixth, officers, professional soldiers, non-commissioned officers, soldiers and workers, national defense officials of the Vietnam People's Army. Seventh, salaried officers, non-commissioned officers, non-commissioned officers, conscripts, police workers of the People's Public Security. Eighth, people working in key organizations. Ninth, people working part-time at the commune level, in villages and residential groups.

The basic salary is used as a basis for: Calculating salary levels in salary tables, allowance levels and implementing other regimes according to the provisions of law for the subjects specified in Article 2 of this Decree; Calculating operating expenses and living expenses according to the provisions of law; Calculating deductions and regimes enjoyed according to the basic salary level.

Funding for basic salary increase

Regarding the budget for implementing the increase in basic salary, the draft clearly states: Ministries, ministerial-level agencies, government agencies, and other central agencies use the 10% savings source for regular expenditures (excluding salary expenditures, salary allowances, salary-related expenses, and human resources expenditures according to the regime) in the 2023 budget estimate, which is increased compared to the 2022 budget estimate assigned by competent authorities; a part of the revenue is retained according to the regime of administrative agencies and public service units; use the unused 2022 salary reform fund to carry over (if any).

Provinces and centrally-run cities use 10% of regular expenditure (excluding salary, salary allowances, salary-related expenses and human expenses according to the regime) estimated for 2023 in excess of the 2022 estimate assigned by competent authorities;

Use 70% of the increase in local budget revenue in 2022 compared to the estimate (excluding land use fees; one-time land rent collected in advance by investors for compensation and site clearance; collection of money for protection and development of rice-growing land; revenue from handling public assets at agencies, organizations and units decided by competent authorities to be used for investment expenditures according to regulations; lottery; fees for visiting relic sites and world heritage sites; fees for using infrastructure works, service works, public utilities in border gate areas; environmental protection fees for mineral exploitation; revenue from public land funds, revenue from profits, public assets at communes and revenue from leasing, hire-purchase, and sale of state-owned houses) assigned by the Prime Minister;

Use unused resources to implement salary reform in 2022;

Use at least 40% of the retained revenue according to the 2023 regime. Particularly for the revenue from providing medical examination, treatment, preventive medicine and other medical services of public health facilities, use at least 35%. The scope of deducting the retained revenue is implemented according to the guidance of the Ministry of Finance on the needs and sources for implementing salary reform in 2023.

The Central budget supplements the remaining funding source due to the adjustment of the basic salary level in 2023 for ministries, ministerial-level agencies, government agencies, other central agencies and provinces and centrally run cities after implementing the above regulations.

The Decree takes effect from July 1, 2023 and replaces Decree No. 38/2019/ND-CP.

According to Vietnamnet