DECREE

ON STATUTORY PAY RATE FOR PUBLIC OFFICIALS AND PUBLIC EMPLOYEES AND ARMED FORCES’ PERSONNEL

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Labor Code dated June 18, 2012;

Pursuant to Resolution No. 70/2018/QH14 dated November 09, 2018 of the National Assembly on state budget estimates 2019;

At the request of the Minister of Home Affairs and Minister of Finance;

The Government promulgates a Decree on statutory pay rate for public officials and public employees and the armed forces.

Article 1. Scope

This Decree sets forth statutory pay rate for public officials and public employees, employees on payrolls, and employees (hereinafter referred to as employees on payroll) who have worked in public sector entities of the Vietnam Communist Party, the Government, or in state-funded socio-political organizations and associations that operate in the central, in central-affiliated cities and provinces (hereinafter referred to as provinces), in suburban districts, urban districts, district-level towns, provincial-affiliated cities, cities affiliated to central-affiliated cities (hereinafter referred to as districts), in commune, ward, or district-level towns (hereinafter referred to as communes), in special administrative and economic units and the armed forces.

Article 2. Regulated entities

Employees on payroll prescribed in Article 1 hereof include:

1. Public officials and public employees from central echelon to district level prescribed in Clause 1 and Clause 2 Article 4 of Law on public officials and public employees 2008.

2. Public officials and public employees at commune level prescribed in Clause 3 Article 4 of Law on public officials and public employees 2008.

3. Public employees working in public sector entities prescribed in Law on Public Employees 2010.

4. Contract employees who are paid as prescribed in Government's Decree No. 204/2004/ND-CP dated December 14, 2004 on pay policy for public officials and public employees and armed forces’ personnel, including: Contract employees in agencies of the Communist Party, the Government, socio-political organizations prescribed in Government's Decree No. 68/2000/ND-CP dated November 17, 2000 on contracts of employment for certain positions in regulatory agencies and public sector entities and Government's Decree No. 161/2018/ND-CP dated November 29, 2018 on amendments to regulations on recruitment of public employees, pay grade advancement for public officials, promotion for public employees and contracts of employment for certain positions in regulatory agencies and public sector entities.

5. Employees on state regular payroll in state-funded associations as defined in Government's Decree No. 45/2010/ND-CP dated April 21, 2010 on organization, operation and management of associations.

6. Commissioned officers, professional soldiers, non-commissioned officers, soldiers and national defense workers and public employees, contract employees in the People's Army of Vietnam.

7. Commissioned officers, non-commissioned officers on payroll, non-commissioned officers, police officers, public security workers and contract employees in the People’s Police of Vietnam.

8. Employees in cryptography organizations.

9. Part-time workers in communes, hamlets or neighborhoods.

Article 3. Statutory pay rate

1. The statutory pay rate is the basis for:

a) Determining the levels of salaries in payrolls, allowances and other benefits as per the law with regard to individuals as defined in Article 2 hereof;

b) Determining subsistence allowances as per the law;

c) Determining contributions and benefits concerning the statutory pay rate.

2. From July 1, 2019, the statutory pay rate is VND 1,490,000 per month.

3. The Government shall request the National Assembly to consider adjusting statutory pay rate in conformity with the capacity of the state budget, consumer price index and national economic growth rate.

Article 4. Funding

1. Ministries, ministerial-level agencies, Governmental agencies, other agencies of central government:

a) Use the saving funded by 10% of recurrent expenditures (excluding salaries, allowances, salary equivalents and other human-related costs) as per 2019's budget estimates as compared with 2018’s budget estimates given by competent authorities;

b) Use part of the retained revenues of administrative agencies and public sector entities;

c) Use the remaining funds for the 2018’s salary reform carried over (if any).

2. Provincial authorities shall:

a) Use the saving funded by 10% of recurrent expenditures (excluding salaries, allowances, salary equivalents and other human-related costs) as per 2019's budget estimates as compared with 2018’s budget estimates given by competent authorities;

b) Use 50% the increase in the local budget revenue in comparison with the 2018’s revenue estimate given by the Prime Minister (excluding revenues from land levies and lottery);

c) Use 50% of budget retrenchment for current administrative activities (due to cutting down of personnel on payroll and reshuffling of the political system towards a streamlined, efficient and effective system) and public service entities (due to fundamental changes in organization and management, quality improvement and operation effectiveness of public sector entities);

d) Use the remaining funds for the 2018’s salary reform carried over (if any);

dd) Use the remaining funds (if any) after adjustment of base salary to VND 1,390,000 per month, from the following resources:

- Use the saving funded by 10% of recurrent expenditures (excluding salaries, allowances, salary equivalents and other human-related costs) as per 2017's budget estimates given by competent authorities.

- Use the saving funded by 10% of recurrent expenditures (excluding salaries, allowances, salary equivalents and other human-related costs) as per 2018's budget estimates as compared with 2017’s budget estimates given by competent authorities.

- Use 50% the increase in the local budget revenue (excluding revenues from land levies and lottery) as per 2018’s budget estimates in comparison with the 2017’s revenue estimate given by the Prime Minister.

- Use 50% the increase in the local budget revenue (excluding revenues from land levies and lottery) as per 2019’s budget estimates in comparison with the 2018’s revenue estimate given by the Prime Minister.

- Use part of the retained revenues in 2019 of administrative agencies and public service entities.

3. The central government’s budget shall provide financial aids for Ministries, ministerial-level agencies, Governmental agencies, other agencies of central government and central-affiliated cities and provinces if their finances for the 2019’s salary reform are insufficient despite their implementation of provisions in Clause 1 and Clause 2 of this Article.

Article 5. Entry in force

1. This Decree comes into force as of July 1, 2019.

2. The Government's Decree No. 72/2018/ND-CP dated May 15, 2018 on statutory pay rate for public officials and public employees and armed forces’ personnel expires from effective date of this Decree.

Article 6. Guidelines and implementation

1. The Minister of Home Affairs provides guidelines for implementation of this Decree with regard to salary earners in bodies, organizations and agencies of the Vietnam Communist party and the Government, and political or social organizations and associations.

2. The Minister of National Defense, the Minister of Public Security shall provide guidelines for this Decree with regard to employees under their management.

3. The Minister of Finance:

a) Provide guidelines for determination of demands, sources and payment methods for adoption of the statutory pay rate as defined in this Decree;

b) Verify demands and finance budget deficit for adoption of the statutory pay rate of ministries, ministerial-level agencies, Governmental agencies, other agencies of central government and provinces as per this Decree, and summarize and report results of activities to the Prime Minister.

4. Ministers, Heads of ministerial-level agencies, Heads of governmental agencies, Chairpersons of provincial People's Committees shall implement this Decree./.