Identifying resources to implement the 2019 salary reform policy

The Circular provides regulations on the implementation of the source creation mechanism to implement the salary and allowance regime in 2019.

Ministries, central agencies and localities continue to implement the mechanism of creating sources for salary reform according to regulations in conjunction with restructuring the apparatus, streamlining the payroll, improving the level of financial autonomy of public service units, striving to increase revenue sources according to regulations to reserve resources to adjust the basic salary to 1.49 million VND/month from July 1, 2019.

When allocating and assigning budget estimates to affiliated units, ministries and central agencies; when allocating and assigning budget estimates to lower-level budgets, People's Committees of provinces and centrally run cities must determine to save 10% of regular expenditures in 2019 (excluding salaries, salary-based allowances, salary-based items and human expenses according to the regime) according to regulations to create a source for salary reform, ensuring that it is not lower than the level assigned by the Ministry of Finance.

People's Committees at all levels, when allocating and assigning budgets to affiliated units, do not include the 10% savings on regular expenditures mentioned in this clause (excluding public service units implementing financial mechanisms according to the provisions of Decree No. 16/2015/ND-CP dated February 14, 2015 of the Government, Decree No. 54/2016/ND-CP dated June 14, 2016 of the Government regulating the autonomy mechanism of public science and technology organizations and state agencies implementing the autonomy mechanism, self-responsibility for the use of payroll and administrative management expenses according to Decree No. 130/2005/ND-CP dated October 17, 2005 of the Government and Decree No. 117/2013/ND-CP dated October 7, 2013 of the Government amending and supplementing a number of articles of Decree No. 130/2005/ND-CP dated October 17, 2005 of the Government and Decree No. 117/2013/ND-CP dated October 7, 2013 of the Government amending and supplementing a number of articles of Decree No. 130/2005/ND-CP dated October 17, 2005 of the Government). 130/2005/ND-CP) to implement salary reform in 2019.

The Circular stipulates that the sources for implementing salary reform in 2019 of localities include: 50% of the increase in local budget revenue in 2018 compared to the estimate (excluding land use fees and lottery) assigned by the Prime Minister; 50% of the increase in local budget revenue (excluding land use fees and lottery) estimated in 2018 compared to the estimate in 2017 assigned by the Prime Minister; 50% of the increase in local budget revenue (excluding land use fees and lottery) estimated in 2019 compared to the estimate in 2018 assigned by the Prime Minister; 50% of local budget expenditures are reduced to support regular activities in the administrative sector (due to streamlining the payroll and innovating and rearranging the apparatus of the streamlined political system, operating effectively and efficiently) and public service units (due to innovating the organizational and management system, improving the quality and efficiency of public service units); Unused sources for salary reform in 2018 are transferred; 10% of regular expenditure savings (excluding salaries, salary allowances, salary-related items and expenses for people according to the regime) are estimated for 2017 assigned by competent authorities; 10% of regular expenditure savings (excluding salaries, salary allowances, salary-related items and expenses for people according to the regime) are estimated for 2018, increasing compared to the estimated expenditure for 2017; 10% savings on regular expenses (excluding salaries, salary allowances, salary-related expenses and human expenses according to the regime) in the 2019 expenditure estimate compared to the 2018 expenditure estimate; Use at least 40% of the retained revenue according to the 2019 regime.

The adjustment of the basic salary aims to improve the lives of officials, employees and workers. Illustration

As for the revenue from the provision of medical examination and treatment services, preventive medicine and other medical services of public health facilities, a minimum of 35% is used. The scope of retained revenue deductions is implemented according to the guidance of the Ministry of Finance on the needs and sources for implementing salary reform in 2019.

After balancing the resources to implement the above salary reform, localities shall proactively use their remaining salary reform resources to implement social security policies and regimes issued by the Central Government (correspondingly reducing the central budget portion that must be supported according to the regime) according to the provisions of Decision No. 579/QD-TTg dated April 28, 2017 of the Prime Minister.

The Central budget supports the need for additional salary adjustment for ministries, central agencies and localities with difficult budgets after balancing the salary adjustment source but not yet meeting the need to implement salary reform according to the prescribed regime.

Circular 119/2018/TT-BTC takes effect from January 20, 2019.