New way to calculate salary and allowances from July 1

Salaries and allowances of cadres, civil servants, public employees and armed forces are calculated based on the new basic salary of 1.8 million VND/month, from July 1.

On June 26, the Ministry of Home Affairs issued a circular guiding the implementation of basic salary levels for agencies, organizations, public service units, socio-political organizations and associations.

Accordingly, the salaries of cadres, civil servants, public employees, and armed forces are calculated by multiplying the new basic salary (1.8 million VND) by the salary coefficient.

For allowances calculated based on the basic salary, the calculation formula is 1.8 million VND multiplied by the allowance coefficient.

For allowances calculated as a percentage of current salary, leadership position allowance, and seniority exceeding the framework, it is calculated by the sum of the new salary, leadership position allowance, and seniority exceeding the framework, multiplied by the percentage of allowance received.

Allowances specified in specific monetary amounts remain unchanged according to current regulations.

The reserve difference coefficient amount is 1.8 million VND multiplied by the reserve difference coefficient.

For those working in key organizations in Party and State agencies, socio-political organizations not under the scope of the Ministry of National Defense and Public Security, the calculation of salary and allowances, and the reserve coefficient will follow the above formula.

Officials carry out administrative procedures for people at the People's Committee of Thu Duc City, Ho Chi Minh City, August 2022. Photo: Quynh Tran — Officials carry out administrative procedures for people at the People's Committee of Thu Duc City, Ho Chi Minh City, August 2022. Photo: *Quynh Tran*

For People's Council delegates at all levels, the activity fee is calculated by multiplying the activity fee coefficient by 1.8 million VND.

For non-professional workers in communes, villages, and residential groups, from July 1, the allowance fund will be allocated from the State budget to each commune, village, and residential group level.

For those working in key organizations under the management of the Ministry of National Defense and the Ministry of Public Security, salaries and allowances are implemented according to the instructions of the Ministers of these ministries.

According to the Government 's decree dated May 14, nine groups will receive salary increases. The first group is officials and civil servants from the central to district levels. The second group is officials and civil servants at the commune level. The third group is civil servants in public service units.

Group four is people who work under labor contracts in administrative agencies and public service units that are subject to application or have agreements in the contract.

Group five are people working within the staffing quota at associations that receive operating funding from the state budget. Group six are officers, professional soldiers, non-commissioned officers, soldiers, workers, defense officials and labor contracts in the Vietnam People's Army.

Group seven includes officers, salaried non-commissioned officers, non-commissioned officers, conscripts, police workers and contract workers of the people's police.

Group eight are people working in key organizations. Group nine are non-professional workers at the commune, village, and residential group levels.

The way to calculate salaries for these groups is to multiply the base salary by the coefficient, plus allowances. A person who has just graduated from university and is working with a salary coefficient of 2.34 will receive a salary of 2.34 x 1.8 million VND, equal to 4.212 million VND.

The basic salary is used as the basis for calculating salaries in payrolls, allowances, living expenses, health insurance, social insurance, and pensions. In November 2022, the National Assembly agreed to increase the basic salary for officials, civil servants, and public employees from VND 1.49 million to VND 1.8 million per month (an increase of 20.8%) from July 1, 2023.

Along with that, pensions, social insurance benefits, and pre-1995 retirees also increased by 12.5% and increased by 20.8% the expenditure on social security policies linked to the basic salary.