New policies on salary and payroll take effect from July

Basic salary from July 1 is 1.8 million VND/month

The Government issued Decree No. 24/2023/ND-CP dated May 14, 2023, stipulating the basic salary for cadres, civil servants, public employees and armed forces. Accordingly, from July 1, the basic salary of 1.8 million VND/month will be applied to 9 groups of subjects.

Specifically, the beneficiaries of salaries and allowances prescribed in this Decree include: Cadres and civil servants from the central to district levels prescribed in Clause 1 and Clause 2, Article 4 of the Law on Cadres and Civil Servants 2008 (amended and supplemented in the Law amending and supplementing a number of articles of the Law on Cadres and Civil Servants and the Law on Public Employees 2019).

Commune-level cadres and civil servants are specified in Clause 3, Article 4 of the 2008 Law on Cadres and Civil Servants (amended and supplemented in the Law amending and supplementing a number of articles of the Law on Cadres and Civil Servants and the Law on Public Employees in 2019).

Civil servants in public service units as prescribed in the Law on Civil Servants 2010 (amended and supplemented in the Law on amending and supplementing a number of articles of the Law on Cadres, Civil Servants and the Law on Civil Servants 2019).

Những chính sách mới về tiền lương, biên chế có hiệu lực từ tháng 7 - 1 — From July 1, the basic salary of 1.8 million VND/month will be applied to 9 groups of subjects.

People who work under the labor contract regime prescribed in Decree No. 111/2022/ND-CP of the Government on contracts for certain types of work in administrative agencies and public service units are eligible or have an agreement in the labor contract to apply salary classification according to Decree No. 204/2004/ND-CP of the Government on salary regime for cadres, civil servants, public employees and armed forces.

People working within the payroll quota at associations are supported by the state budget for operating expenses according to the provisions of Decree No. 45/2010/ND-CP of the Government regulating the organization, operation and management of associations (amended and supplemented in Decree No. 33/2012/ND-CP).

Officers, professional soldiers, non-commissioned officers, soldiers, workers, defense officials and contract workers of the Vietnam People's Army.

Officers, salaried non-commissioned officers, non-commissioned officers, conscripts, police workers and contract workers of the People's Public Security.

People working in key organizations.

Non-professional activists at commune, village and residential group levels.

New policy on streamlining staff

In addition to the increase in basic salary, in July, Decree No. 29/2023/ND-CP dated June 3, 2023 of the Government regulating staff streamlining also received much attention.

Decree No. 29 takes effect from July 20 and applies until December 31, 2030. This Decree replaces Decree No. 108/2014/ND-CP dated November 20, 2014, Decree No. 113/2018/ND-CP dated August 31, 2018, Decree No. 143/2020/ND-CP dated December 10, 2020.

The Decree has many new points on the policy of streamlining the payroll, early retirement, and determining the age of enjoying the early retirement policy for cadres, civil servants, and public employees is determined according to the actual retirement age of each person (stipulated in Appendix I, Appendix II of Decree No. 135/2020/ND-CP) to ensure compliance with the provisions of Conclusion No. 08-KL/TW dated June 15, 2021 of the Politburo on the age of appointment and introduction of candidates.

The Decree also adjusts the conditions for enjoying early retirement policy for female commune-level cadres and civil servants with 15 years and less than 20 years of social insurance contributions, ensuring compliance with the provisions of Point a, Clause 1, Article 219 of the 2019 Labor Code.

At the same time, 2 policies are added to encourage cadres, civil servants, public employees at district and commune levels and part-time workers at commune, village and residential group levels who are redundant due to administrative unit rearrangement to immediately quit their jobs according to the requirements of Resolution No. 595/NQ-UBTVQH15.

Specifically, regarding the early retirement policy , the Decree stipulates that commune-level cadres and civil servants who are at least 10 years younger than the maximum retirement age and at least 5 years younger than the retirement age prescribed by law and have paid social insurance for 20 years or more, in addition to receiving pensions according to regulations, are also entitled to a subsidy of 1.5 months of average salary for each year of early retirement compared to the retirement age.

Subsidized 5 months of average salary for the first twenty years of work, with full payment of mandatory social insurance. From the twenty-first year onwards, for each year of work with mandatory social insurance, a subsidy of 1/2 month of salary is granted.

For subjects of streamlining redundant staff due to rearrangement of administrative units at district and commune levels. District and commune-level cadres, civil servants and public employees who are redundant due to rearrangement of administrative units, in addition to enjoying one of the policies as in other cases of streamlining staff, are entitled to an additional allowance.

Specifically, if cadres, civil servants and public employees take leave within 12 months from the date of decision by competent authority, each month of leave before the end of the term will receive a subsidy equal to 1/2 month of current salary.

If the leave is after 12 months from the date of the arrangement decision of the competent authority until before the end of the term, each month of leave before the end of the term will receive a subsidy equal to 1/4 of the current salary.

For subjects who retire before the end of their term, the number of months of benefits is calculated by the number of months of leave before the retirement date mentioned above.

For part-time workers at the commune, village, and residential group levels holding elected and non-elected positions, each month of leave before the end of the term is entitled to a subsidy equal to half of the current monthly allowance.

For subjects whose retirement date is before the end of the arrangement roadmap, the number of months of receiving benefits is calculated by the number of months of retirement before the retirement date mentioned above.

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