Changes in regulations on raising salary levels for cadres, civil servants, and public employees in Vietnam

Changes in regulations on raising salary levels for cadres, civil servants, and public employees in Vietnam

Circular 03/2021/TT-BNV amending and supplementing several articles on the regime of regular wage increase and wage increase before the deadline, and overtime allowance regime for cadres, civil servants, public employees, and employees has been published on June 29, 2021, by the Ministry of Home Affairs. So, what are the changes in regulations on raising salary levels for cadres, civil servants, and public employees in Vietnam?

Circular 03/2021/TT-BNV takes effect from August 15, 2021.

According to Circular 03, there will be major changes on the regime of regular wage increase and wage increase before the deadline compared to Circular No. 08/2013/TT-BNV dated July 31, 2013.

Changes in regulations on raising salary levels for cadres, civil servants, and public employees in Vietnam
Changes in regulations on raising salary levels for cadres, civil servants, and public employees in Vietnam. Source: hoian.gov

The changes are listed as follows:

Regarding the regulated entities 

Previously, Circular 08/2013/TT-BNV stipulates that one of the entities to be applied is “Those who work under the labor contract regime are paid according to the salary table prescribed by the State in state agencies and public non-business units according to the current provisions of law”.

Circular 03 amends the wordings of the provision into “Those who work under the labor contract regime in administrative agencies and public non-business units which have an agreement in the labor contract to arrange wages according to 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.”

Increase 01 more case counted in the time to consider raising the regular wage level

The case that is added to the time to consider raising the regular wage level is the period of time that cadres, civil servants, public employees, and employees participate in active service in accordance with the Law on Military Service.

Increase 04 more cases that are not counted in the time to consider raising the regular wage level

04 more cases that are not counted in the time to consider raising the regular wage level are:

  • The probationary period (including the case of receiving 100% of the salary of the civil servant rank and professional title of the probationary public employee).
  • The time when cadres, civil servants, public employees, and employees deserted during their military service.
  • The probation period for cadres, civil servants, public employees, and employees who are sentenced to prison but given suspended sentences.
  • Time off from work until reaching retirement age according to current regulations of law.

Amend the standard for the regular wage increase for officials and civil servants

The standard for the regular wage increase for officials and civil servants delete the term “but with limited capacity or higher” and change the rest of the provision.

From now on, the standard will be “Evaluated and graded by competent authorities at the level of task completion or higher”.

Amend the regulation on the extended period for consideration of regular wage increase

One of the changes is that the term ’employees’ is added into one of the provisions. Accordingly, from now on, the provision will be “Cadres, civil servants, and employees who are disciplined, reprimanded, shall have an extended period (for consideration of regular wage increase) of 06 months.”

Additional changes are: 

  • Officials who are disciplined with a warning (previously Circular 08/2013/TT-BNV stipulates “Officials and employees who are disciplined with a warning”), shall have an extended period of 06 months.
  • Officials who are disciplined and reprimanded (previously Circular 08/2013/TT-BNV stipulates “Officials and employees who are disciplined and reprimanded”), shall have an extended period of 03 months.

Amend the regulation on the number of times to have wage increase before the deadline due to excellent performance in task performance

The provisions stipulate that there will be “No two consecutive wage increases before the deadline due to excellent performance in tasks”

Accordingly, it will not be possible to raise the wage level two times in a row before the deadline due to excellent achievements in performing tasks, regardless of whether the wage increase is in the same rank or the same title.

ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.

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