How are salaries and allowances of civil servants and public employees calculated?

The above draft clearly states the applicable subjects including

1- Cadres and civil servants receiving salaries from the state budget working in Party, State, Fatherland Front agencies, socio -political organizations at the central level; in provinces and centrally run cities; in districts, towns, provincial cities, and centrally run cities; and in special administrative-economic units.

2- Officials receive salaries from the salary fund of public service units according to the provisions of law.

3- Cadres, civil servants and public employees are transferred or seconded to work at associations, non- governmental organizations, projects and international agencies and organizations located in Vietnam according to the decision of competent authorities.

4- Cadres, civil servants in communes, wards, towns and non-professional workers at the commune level, in villages and residential groups as prescribed in Decree No. 92/2009/ND-CP dated October 22, 2009 of the Government on titles, numbers, a number of regimes and policies for cadres, civil servants in communes, wards, towns and non-professional workers at the commune level and Decree No. 34/2019/ND-CP dated April 24, 2019 of the Government amending and supplementing a number of regulations on cadres, civil servants at the commune level and non-professional workers at the commune level, in villages and residential groups.

5- People's Council delegates at all levels receive activity fees according to current law provisions.

6- People working in key organizations.

7- The following subjects are also within the scope of application of this circular when calculating and determining the contribution level, enjoying social insurance regimes and resolving regimes related to salary according to the provisions of law.

- Cadres, civil servants, and public employees who go to school, do internships, work, receive treatment, or receive nursing care (domestic and foreign) and are on the payroll of Party and State agencies, socio-political organizations, public service units, and associations that receive state budget support for operating expenses.

- People who are in the probationary or internship period (including commune-level civil servant internship) in Party and State agencies, socio-political organizations, public service units and associations receiving state budget support for operating expenses.

- Officials, civil servants and public employees who are temporarily suspended from work, detained or imprisoned.

- Cases of working in Party, State, Fatherland Front agencies, socio-political organizations, public service units and associations receiving state budget support for operating expenses are signed labor contracts according to the salary table issued with Decree No. 204/2004/ND-CP dated December 14, 2004 of the Government on salary regime for cadres, civil servants, public employees and armed forces.

How to calculate salary, allowances and operating expenses according to the new basic salary

The Draft Circular clearly states the method of calculating salaries, allowances and activity fees for cadres, civil servants, public employees and employees specified in Clauses 1, 2, 3, 4 and 7 above: Based on the current salary and allowance coefficients stipulated in documents of competent agencies of the Party and State on salary regimes for cadres, civil servants, public employees and armed forces, the basic salary level for cadres, civil servants, public employees and armed forces is as follows:

a) Salary calculation formula: Salary effective from July 1, 2023 = Basic salary 1,800,000 VND/month x Current salary coefficient.

b) Formula for calculating allowance level:

- For allowances calculated based on the basic salary: Allowance level implemented from July 1, 2023 = Basic salary 1,800,000 VND/month x Current allowance coefficient.

- For allowances calculated as a % of current salary plus leadership position allowance and seniority allowance exceeding the framework (if any): Allowance level implemented from July 1, 2023 = Salary level implemented from July 1, 2023 + Leadership position allowance implemented from July 1, 2023 (if any) + Seniority allowance exceeding the framework implemented from July 1, 2023 (if any) x Percentage of allowances enjoyed according to regulations.

- For allowances specified in specific amounts, keep them according to current regulations.

c) Formula for calculating the amount of the reserve difference coefficient (if any): The amount of the reserve difference coefficient implemented from July 1, 2023 = Basic salary 1,800,000 VND/month x Current reserve difference coefficient (if any).

* The Government has also just issued Decree 24/2023/ND-CP increasing the basic salary to 1.8 million VND from July 1, 2023, replacing Decree 38/2019/ND-CP; which stipulates that from July 1, 2023, the basic salary of 1.8 million VND/month will be applied.

The 2023 basic salary is used as a basis:

+ Calculate salaries in payrolls, allowances and implement other regimes according to the law for specified subjects.

+ Calculate operating expenses and living expenses according to the law

+ Calculate deductions and benefits based on basic salary.

PRAGUE

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