The basic salary of 1.3 million VND per month will be applied from July 1.

According to Decree 47/2017/ND-CP regulating the basic salary for cadres, civil servants, public employees and armed forces, which has just been issued by the Government, from July 1, 2017, the basic salary is 1,300,000 VND/month (instead of the old level of 1,210,000 VND/month).

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, public service units of the Party, the State, socio-political organizations and associations receiving State budget support for operating expenses at the Central level, in provinces and centrally run cities, in districts, towns, provincial cities, centrally run cities (district level), in communes, wards and towns (commune level), in special administrative-economic units and the armed forces.

The beneficiaries of the above salaries and allowances include cadres and civil servants from the central to district levels as prescribed in Clauses 1 and 2, Article 4 of the 2008 Law on Cadres and Civil Servants; commune-level cadres and civil servants as prescribed in Clause 3, Article 4 of the 2008 Law on Cadres and Civil Servants; and civil servants in public service units as prescribed in the 2010 Law on Civil Servants.

The Decree also stipulates that the person entitled to the above salary and allowances is the person working under a labor contract with salary classified according to Decree No. 204/2004/ND-CP dated December 14, 2004 of the Government on salary regime for cadres, civil servants, public employees and armed forces.

These are people working under labor contracts in agencies and units of the Party, the State, and socio-political organizations prescribed in Decree No. 68/2000/ND-CP dated November 17, 2000 of the Government on implementing the contract regime for certain types of work in State administrative agencies and public service units; people working under labor contracts among the number of employees approved by competent authorities at public service units according to the decision of the Prime Minister.

People working within the staffing quota in associations receiving State budget support 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; officers, professional soldiers, non-commissioned officers, soldiers and workers, defense officials, contract workers of the Vietnam People's Army; officers, salaried non-commissioned officers, non-commissioned officers, conscripts, police workers and contract workers of the People's Public Security; people working in cryptographic organizations; people working part-time at the commune level, in villages and residential groups.

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 the above subjects; calculating operating expenses and living expenses according to the provisions of law; calculating deductions and regimes enjoyed according to the basic salary level.

The basic salary is adjusted based on the State budget capacity, consumer price index and the country's economic growth rate.

Ministries, ministerial-level agencies, Government agencies, and other central agencies shall, within the assigned State budget estimates, strive to increase revenue sources and use the unused 2016 salary reform funds transferred (if any) to balance the resources for adjusting the basic salary level in 2017.

Provinces and centrally run cities use the savings of 10% of regular expenditures (excluding salary, salary allowances, salary-related expenses and human expenses according to the regime) according to the estimates assigned by competent authorities in 2017 of administrative agencies and public service units; use a part of the retained revenue according to the regime of administrative agencies and public service units.

In addition, use 50% of the increased local budget revenue compared to the 2016 estimate assigned by the Prime Minister (excluding land use fees and lottery fees); unused funds for implementing salary reform in 2016 will be transferred (if any).

For some localities with difficult budgets, after implementing the above regulations but still lacking resources to implement salary reform in 2017, the central budget will supplement the shortage for the locality to implement.

The Decree takes effect from July 1, 2017./.

According to Vietnamplus