Changes in salaries of officials, civil servants, employees need to know

I.For the public sector

1. Basic salary in 2019

- From now until June 30, 2019: VND 1,390,000/month (Clause 2, Article 3, Decree 72/2018/ND-CP dated May 15, 2018)

- From July 1, 2019: VND 1,490,000/month (Clause 8, Article 4, Resolution 70/2018/QH14 dated November 9, 2018).

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2. From 2021, abolish the basic salary and build 5 new salary tables

Instead of regulating the basic salary and benefit coefficient for subjects in the state sector, the upcoming plan will be to abolish this, replacing it with a basic salary equal to a specific amount in the following 5 salary tables:

- 1 salary table for positions applied to cadres, civil servants, and public employees holding leadership positions (elected and appointed) in the political system from the central to communal level.

- 1 professional and technical salary table according to civil servant ranks and professional titles of civil servants applied generally to civil servants and public employees who do not hold leadership positions.

- 3 salary scales for armed forces, including:

+ 1 salary table for military officers, police officers and non-commissioned officers (according to position, title and military rank or grade);

+ 01 salary table for professional military personnel and police technical specialists;

+ 01 salary table for defense workers and police workers (in which the salary correlation between armed forces and administrative civil servants is maintained as at present).

(Item b,c Point 3.1 Clause 3 Part II Resolution 27-NQ/TW dated May 21, 2018).

3. Moving towards abolishing 05 current allowances

The list of allowances that will be abolished includes:

- Seniority allowance (except for military, police, and cryptography to ensure salary correlation with cadres and civil servants);

- Leadership position allowance (by leadership positions in the political system to implement salary classification);

- Allowance for party work, political and social organizations;

- Public service allowance (included in basic salary);

- Hazardous and toxic allowances (due to including hazardous and toxic working conditions in occupational allowances).

Simultaneously:

- Combining preferential allowances by profession, responsibility allowances by profession and toxic and dangerous allowances applied to civil servants and public employees of professions and jobs with higher than normal working conditions and with appropriate preferential policies of the State.

- Merge special allowances, attraction allowances and long-term work allowances in areas with particularly difficult socio-economic conditions into work allowances in particularly difficult areas.

- New regulations on allowances according to administrative unit classification for commune, district and provincial levels.

(Item d, Point 3.1 Clause 3 Part II Resolution 27-NQ/TW dated May 21, 2018).

4. Abolish non-salary expenses of officials, civil servants and public employees originating from the state budget.

Some of the expenses include: Meeting allowances; allowances for drafting legal documents, projects; seminars...

(Clause 4 Part III Resolution 27-NQ/TW dated May 21, 2018)

II. For the business sector

1. Regional minimum wage in 2019

- Level 4,180,000 VND/month, applied to enterprises operating in areas in region I;

- Level 3,710,000 VND/month, applied to enterprises operating in areas in region II;

- Level 3,250,000 VND/month, applied to enterprises operating in areas in region III;

- Level 2,920,000 VND/month, applied to enterprises operating in areas in region IV.

2. Will add regulations on regional minimum hourly wages

In addition to perfecting the policy on monthly regional minimum wages, the Government will also supplement regulations on hourly regional minimum wages to increase the coverage of minimum wages and meet the flexibility of the labor market.

(Item a, Point 3.2 Clause 3 Part II Resolution 27-NQ/TW dated May 21, 2018).

3. Adjust regional minimum wages according to roadmap

- From 2018 to 2020: adjust the regional minimum wage so that by 2020 the minimum wage ensures the minimum living standard of workers and their families.

- From 2021 to 2025 and vision to 2030: periodically adjust regional minimum wages based on recommendations of the National Wage Council; the State does not directly intervene in enterprises' wage policies.