Basic salary increased to 1.8 million VND, who will benefit?

The Ministry of Home Affairs is drafting a document to submit to the Government and a draft decree regulating salary levels for cadres, civil servants, public employees and armed forces to adjust the level from 1.49 million VND/month to 1.8 million VND/month.

The basic salary will increase for officials, civil servants, public employees and armed forces. In the photo: an agency in Ho Chi Minh City. Photo: Duyen Phan

Accordingly, the basis for adjusting the basic salary is to comply with Resolution 69 of the National Assembly on increasing the basic salary.

At the same time, with the current basic salary of 1.49 million VND/month, the Ministry of Home Affairs assessed that although it has increased by 7.19% compared to before, this salary only reached 37.89% compared to the average level in 2022 of more than 3.9 million VND/month. This reality leads to many difficulties in the lives of cadres, civil servants, public employees and armed forces.

On that basis, the Government's draft decree on increasing the basic salary, the basic salary is adjusted from 1.49 million VND/month to 1.8 million VND/month from July 1, 2023, which is an increase of 20.8% compared to the current salary.

This salary is expected to apply to the following specific subjects:

1. Cadres and civil servants from the central to district levels are regulated in the Law on Cadres and Civil Servants and the Law on Public Employees.

2. Commune-level cadres and civil servants as prescribed in the Law on Cadres and Civil Servants and the Law on Public Employees.

3. Officials in public service units.

4. Employees working within the staffing quota of associations are supported with operating expenses according to Decree 45 of the Government regulating the organization, operation and management of associations.

5. Officers, professional soldiers, non-commissioned officers, soldiers, workers, and defense officials of Vietnam.

6. Officers, salaried non-commissioned officers, non-commissioned officers, conscripts, workers, and policemen of the People's Public Security.

7. People working in key organizations.

8. Non-professional workers at commune, village and residential group levels.

According to the draft, the basic salary will be used as the basis for calculating salaries in the payroll, allowances and implementing other regimes according to regulations.

At the same time, calculate operating expenses, living expenses, deductions and bonuses based on the basic salary.

To implement the increase in basic salary, the draft decree also stipulates the implementation costs.

Specifically, ministries, ministerial-level agencies, government agencies and central agencies will use the savings source of 10% of the estimated regular expenditure for 2023.

In addition, a portion of the revenue retained under the regime and unused 2022 salary reform funds (if any) will be used.

For provinces and centrally run cities, in addition to the 10% savings on regular expenditures, 70% of the increase in local budget revenue in 2022 compared to the estimate will be used. At the same time, unused salary reform funds in 2022 will be used, and at least 40% of the revenue retained under the 2023 regime will be used.

The Central budget will supplement the missing funding source due to the adjustment of the basic salary level in 2023 for ministries, ministerial-level agencies and government agencies, other central agencies, provinces and centrally run cities.

As planned, this week the Ministry of Home Affairs will meet with relevant ministries and branches to collect opinions to complete the draft before submitting it to the Government for approval.