Officially increase basic salary from July 1 for 9 groups of subjects

Accordingly, from July 1, 2023, the basic salary of 1.8 million VND/month will be applied to 9 groups of subjects.

Decree No. 24/2023/ND-CP dated May 14, 2023 stipulating the basic salary for cadres, civil servants, public employees and armed forces

This Decree stipulates the basic salary level applicable to cadres, civil servants, public employees, salary and allowance earners and employees (collectively 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.

9 applicable subjects

People receiving salaries and allowances prescribed in this Decree include:

1. Cadres and civil servants from the central to district level as prescribed 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).

2. Commune-level cadres and civil servants specified in Clause 3, 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).

3. 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).

4. People who work under the labor contract regime prescribed in Decree No. 111/2022/ND-CP of the Government on contracts for certain types of work in administrative agencies and public service units in cases where they are eligible or have an agreement in the labor contract to apply salary classification according to Decree No. 204/2004/ND-CP of the Government on salary regime for cadres, civil servants, public employees and armed forces.

5. People working within the staffing quota at associations are supported by the state budget for operating expenses according to the provisions of Decree No. 45/2010/ND-CP of the Government regulating the organization, operation and management of associations (amended and supplemented in Decree No. 33/2012/ND-CP).

6. Officers, professional soldiers, non-commissioned officers, soldiers, workers, defense officials and contract workers of the Vietnam People's Army.

7. Officers, salaried non-commissioned officers, non-commissioned officers, conscripts, police workers and contract workers of the People's Public Security.

8. People working in key organizations.

9. Non-professional activists at commune, village and residential group levels.

From July 1, 2023, the basic salary is 1.8 million VND/month

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

Continue to implement the special financial and income mechanism for agencies and units that are implementing the special financial and income mechanisms at the central level prescribed by competent authorities for a number of state administrative agencies and units until the overall reform of salary policy is implemented according to Resolution No. 27-NQ/TW dated May 21, 2018 of the 7th Conference of the 12th Central Executive Committee; the monthly salary and additional income increase is calculated based on the basic salary of 1.8 million VND/month from July 1, 2023 according to the special mechanism, ensuring that it does not exceed the average salary and additional income increase in 2022 (excluding the salary and additional income increase due to the adjustment of the salary coefficient according to the rank and grade when upgrading the rank and grade).

The Government submitted to the National Assembly for consideration to adjust the basic salary in accordance with the state budget capacity, consumer price index and economic growth rate of the country.

Implementation costs

Ministries, ministerial-level agencies, government agencies, and other central agencies:

a) Use 10% of the regular expenditure savings (excluding salaries, salary allowances, salary-related expenses and human expenses according to the regime) in the 2023 budget estimate, which is increased compared to the 2022 budget estimate assigned by the competent authority;

b) Administrative agencies and public service units that collect fees shall make provisions to create a source for salary reform from a portion of the fee revenue retained according to prescribed regulations after deducting expenses directly related to service provision and fee collection activities;

c) Use unused funds to implement salary reform in 2022 to carry over (if any).

Provinces and centrally-run cities:

a) Use 10% of the regular expenditure savings (excluding salaries, salary allowances, salary-related expenses and human expenses according to the regime) in the 2023 budget assigned by competent authorities;

b) Use 70% of the increase in local budget revenue compared to the estimate (excluding: land use fees; lottery; revenue from equitization and divestment of state-owned enterprises managed by localities; one-time land rent advanced by investors for compensation, site clearance and revenue from handling public assets at agencies, organizations and units decided by competent authorities to be used for investment expenditures according to regulations; revenue from protection and development of rice-growing land; 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; environmental protection fees for wastewater; 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;

c) Use unused funds to implement salary reform in 2022 to carry over (if any);

d) Use at least 40% of the retained revenue according to the 2023 regime after deducting costs directly related to service provision and fee collection. Particularly, for revenue from the provision of medical examination and treatment services, 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 Ministry of Finance's guidance on the needs and sources for salary reform implementation 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 cost of implementing salary reform for civil servants and employees in public service units of groups 1 and 2 shall be self-guaranteed by the units according to the provisions of Decree No. 60/2021/ND-CP of the Government stipulating the financial autonomy mechanism of public service units and documents amending, supplementing and replacing Decree No. 60/2021/ND-CP (if any).

This Decree comes into force from July 1, 2023.

According to VGP