Where to get money for salary increase?
The Ministry of Finance is seeking public comments on the draft Circular guiding the determination of needs and sources for adjusting the basic salary level for cadres, civil servants and public employees in 2023.
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According to the draft, the funding sources for adjusting the basic salary level in 2023 of ministries and central agencies include:
Unused sources for salary reform by the end of 2022 will be transferred to 2023 (if any).
Use at least 40% of the revenue retained under the 2023 regime. Particularly for revenue from providing medical examination and treatment services, preventive medicine and other medical services of public health facilities, use at least 35%.
Use the savings source of 10% of regular expenditure (excluding salary expenditure, salary allowances, salary-related expenses and human expenses according to the regime) estimated for 2023, increasing compared to the estimated budget for 2022 assigned by competent authorities.
Funding sources for implementation of provinces and centrally run cities
The funding sources for adjusting the basic salary level and adjusting the allowances for retired commune cadres of provinces and centrally run cities include:
Use the 10% savings source for regular expenses (excluding salary expenses, salary allowances, salary-related expenses and human expenses according to the regime) of the 2023 budget assigned by the competent authority.
Use 70% of the increased local budget revenue in 2022 compared to the estimate assigned by the Prime Minister (excluding increased revenue from the following revenues: land use fees; lottery; one-time land rent advanced by investors for compensation and 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; revenue from public land funds, revenue from profits, public assets at communes and revenue from leasing, hire-purchase, and sale of state-owned houses).
Use unused funds to implement salary reform in 2022 to carry over (if any).
Use at least 40% of the revenue retained under the 2023 regime; specifically, for revenue from providing medical examination and treatment services, preventive medicine and other medical services of public health facilities, use at least 35%.
The Central budget supports the need for additional salary adjustment for ministries, central agencies and localities with difficult budgets after balancing the salary adjustment source but not yet meeting the need to implement salary reform according to the prescribed regime.