Increase basic salary for officials and civil servants

From May 1, 2016, the basic salary is 1.21 million VND/month. This is the content of Decree 47/2016/ND-CP regulating the basic salary for cadres, civil servants, public employees and armed forces, which has just been issued by the Government.

Decree regulating the basic salary 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, and 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; civil servants in public service units as prescribed in the 2010 Law on Civil Servants; and people working under labor contracts with salaries 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.

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, conscripts and workers, defense officials, contract workers of the Vietnam People's Army; salaried officers, non-commissioned officers, conscripts, police workers and contract workers of the People's Public Security; people working in key organizations and non-professional workers at the commune, village and residential group levels are also entitled to the above salary level.

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 according to the basic salary level. The basic salary level is adjusted based on the state budget capacity, consumer price index and economic growth rate of the country.

Ministries, ministerial-level agencies, government agencies, and other central agencies shall use the unused budget for salary reform in 2015 and arrange it within the assigned state budget estimates and revenue sources (if any) to balance the resources for adjusting the basic salary level in 2016.

Provinces and centrally-run cities use the 10% savings source for regular expenditures (excluding salary expenditures and other salary-related expenses) according to the 2016 budget estimates assigned by competent authorities of administrative agencies and public service units; use an additional 10% savings source for regular expenditures (excluding salary expenditures and other salary-related expenses) in addition to the above savings; use a part of the revenue source of administrative agencies and public service units.

In addition, use 50% of the increased local budget revenue, excluding land use fee revenue (including 50% of the increased revenue compared to the 2015 revenue estimate assigned by the Prime Minister and 50% of the increased revenue estimated in 2016 compared to the 2015 revenue estimate assigned by the Prime Minister); the unused budget source for implementing salary reform in 2015 is transferred.

For some poor localities with difficult budgets, after implementing the above regulations but still lacking resources to implement salary reform in 2016, the central budget will supplement the shortage for the locality to implement.

The Decree takes effect from July 15, 2016. The basic salary prescribed in this Decree is calculated from May 1, 2016./.

According to Vietnamplus