Prime Minister Nguyen Xuan Phuc signed a document assigning resources for salary reform in 2021.

Accordingly, Decision No. 1950/QD-TTg clearly states that ministries, central and local agencies continue to implement current regulations on creating sources for salary reform in 2021 from: a portion of revenue retained according to the regime of agencies and units; saving 10% of additional regular expenditure (excluding salaries, salary allowances, salary-related items and human expenses according to the regime);

Sources for implementing salary reform until the end of 2020 with remaining balance transferred (if any); 70% of the increased revenue source implemented bylocal budgetcompared to the 2020 budget estimate; 50% of the 2021 local budget revenue increase compared to the 2020 budget estimate to create a source for salary reform in 2021 and accumulate for the 2021-2025 period.

The Prime Minister supports the central budget for localities that cannot balance resources according to regulations to implement salary policies according to the basic salary level of 1.49 million VND/month.

When determining the increase in local budget revenue (excluding land use fees and lottery fees) to calculate expenditures for salary reform, some additional revenues associated with specific expenditure tasks shall be excluded, including: 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;

Collecting fees for protection and development of rice-growing land; fees for visiting historical sites and world heritage sites; fees for using infrastructure works, service works, and public utilities in border gate areas; environmental protection fees for mineral exploitation; environmental protection fees for wastewater; collecting from public land funds, collecting profits, and public assets in communes; and collecting fees for renting, leasing, and selling state-owned houses.

Prime MinisterAssign the Minister of Finance to determine and assign the target of saving 10% of the additional regular expenditure in 2021 to create a source for salary reform for each ministry, central agency and each province and centrally-run city according to regulations; determine the amount of increased central budget revenue to submit to competent authorities; the amount of increased budget revenue for each locality, as a basis for notifying localities for implementation.

The Prime Minister supports the central budget for localities that cannot balance resources according to regulations to implement salary policies according to the basic salary level of 1.49 million VND/month.

Localities after ensuring sufficient demandsalary, localities proactively use the remaining salary reform resources to implement social security policies and regimes issued by the Central Government. The central budget supports localities to ensure resources to implement salary and social security policies issued by the Central Government according to the support principles of the 2017-2020 period (including localities that have committed to ensuring the need for salary reform and social security policies until the end of 2020, but the 2021 budget lacks resources).

Localities with central budget regulations, in case of determining to ensure funding sources for salary reform and implementation of social security policies issued by the Central Government for the entire roadmap until 2025, without requesting central budget support, are allowed to submit to the Prime Minister for consideration and decision on the use of this surplus salary source to invest in development investment projects according to the provisions of Resolution No. 86/2019/QH14 dated November 12, 2019 of the National Assembly.