Tiếng Việt
中文 (中国)
From July 1, 2022, it is expected that Vietnam will implement salary reform in the spirit of Resolution 27-NQ/TW dated May 21, 2018. However, recently, the National Assembly has postponed the time of salary reform according to a decision in the 15th National Assembly of Vietnam. So then, what will the salary of cadres, civil servants, and public employees be in 2022?
Base salary
According to Decree 38/2019/ND-CP stipulating the base salary for cadres, civil servants, public employees, and the armed forces, the base salary is understood as the base for:
- Calculating salary levels in the salary tables, allowance levels and implementing other regimes as prescribed by law;
- Calculating the activity fee and subsistence fee according to the provisions of law;
- Calculating deductions and benefits according to the base salary.
The base salary from the beginning of the 21st century in Vietnam
The base salary over the years from 2004 to 2019 has continuously increased. Nonetheless, it should be noted that the increase between years is not equal, due to the circumstance of society at that moment.
The highest increase was from May 1, 2012, to the end of June 2013 with an increase of VND 230,000/month compared to the previous year.
The lowest increase was from October 1, 2005, to the end of September 2006, with an increase of 60,000 VND/month compared to the previous year.
Specifically, the increase in base salary is as follows:
- From October 1, 2004, to the end of September 2005: 290,000 VND (Decree 203/2004/ND-CP)
- From October 1, 2005, to the end of September 2006: 350,000 VND (Decree 118/2005/ND-CP)
- From October 1, 2006, to the end of December 2007: 450,000 VND (Decree 94/2006/ND-CP)
- From January 1, 2008, to the end of April 2008: 540,000 VND (Decree 166/2007/ND-CP)
- From May 1, 2009, to the end of April 2009: 650,000 VND (Decree 33/2009/ND-CP)
- From May 1, 2010, to the end of April 2011: 730,000 VND (Decree 28/2010/ND-CP)
- From May 1, 2011, to the end of April 2012: 830,000 VND (Decree 22/2011/ND-CP)
- From May 1, 2012, to the end of June 2013: 1,050,000 VND (Decree 31/2012/ND-CP)
- From July 1, 2013, to the end of April 2016: 1,150,000 VND (Decree 66/2013/ND-CP)
- From May 1, 2016, to the end of June 2017: 1,210,000 VND (Decree 47/2016/ND-CP)
- From July 1, 2017, to the end of June 2018: 1,300,000 VND (Decree 47/2017/ND-CP)
- From July 1, 2018, to the end of June 2019: 1,390,000 VND (Decree 72/2018/ND-CP)
- From 01/07/2019 onwards: 1,490,000 VND (Decree 38/2019/ND-CP)
Proposal to delay the implementation of salary reform in 2020
According to the roadmap from previous years, July 1, 2020, is the time to increase the base salary for cadres and civil servants. At that time, the National Assembly has fixed to increase the base salary in 2020 to 1.6 million VND/month in Resolution 86.
However, in the early days of 2020, the complicated situation of the Covid-19 epidemic made the citizens’ lives difficult. To relieve the burden of the economy and society, in Resolution 122/2020/QH14, the National Assembly officially approved not to adjust the base salary for cadres and civil servants from July 1, 2020.
At the same time, in this Resolution, based on the actual situation, the Government reports to the National Assembly Standing Committee on the time of adjusting the base salary.
Accordingly, on October 9, 2020, at the 13th Central Conference, the Central Committee voted and once again approved the postponement of the time of applying wage reform to July 1, 2022, instead of 2021.
Consequently, the following wage reform policies will be postponed until July 1, 2022:
- Develop 05 new salary tables according to job titles and positions;
- Adding bonuses to salary structure;
- Abolish a series of allowances and non-salary expenses…
This means that for two consecutive years, the salaries of public employees will not change.
Salary reform will be implemented at “the appropriate time”
On the morning of November 13, 2021, on the last working day of the second session, the National Assembly officially agreed to delay the implementation of salary reform with 465/468 delegates approving the Resolution on the State budget estimate in 2022.
Over the past time, the Covid-19 epidemic has had a significant impact on the socio-economic situation, people’s lives, especially low-income citizens, people working full-time in communes and wards, etc. However, at present, state budget revenue meets extremely difficult with state budget expenditure has increased skyrocketing, especially spending on Covid-19 epidemic prevention and control and economic recovery is an important and urgent task.
Thus, at present, due to the complicated development of the Covid-19 situation, the salary reform of cadres, civil servants, and public employees continues to be postponed to “the appropriate time”.
Specifically, according to Resolution 27 dated May 21, 2018, the Party Central Committee stated that in 2021, a new uniform salary system for cadres, civil servants, and public employees will be applied with a specific amount that is not based on the current base salary and coefficient.
In addition, many allowances will also be abolished such as seniority allowances, allowances for leadership positions, public service allowances, etc.
There will only be a few types of allowances remained such as part-time allowances, over-the-frame seniority allowances, regional allowances, allowance for mobile petrol, etc.
However, due to the situation of the Covid-19 pandemic which is still raging uncontrol in 2021, and possibly 2022, the complete reform of the salary regime will be postponed another time, waiting for ‘the appropriate moment’ in future years.
Accordingly, on July 1, 2022, there will be no change in the regime of base salary in Vietnam. In addition, the base salary of cadres, civil servants, and public employees will also not increase, remaining at the current level of 1,490,000 VND (Decree 38/2019/ND-CP).
Calculate the salaries of cadres, civil servants and public employees in 2022
Specifically, before and from July 1, 2022, until there are further Resolution or Decree from the Government of Vietnam, cadres, civil servants, and public employees will still calculate their salary according to the formula:
Total Salary = (Base salary x Salary coefficient) + Allowance (if any)
Base salary
Ranging from 290,000 VND in 2004 to 1,490,000 VND in 2019, the base salary with the amount of 1,490,000 VND will likely be the last change, a fixed number in the base salary regime from here on out.
Salary coefficient
The current salary coefficient is still regulated in Decree 204/2004/ND-CP according to the rank of a civil servant or professional title of a public employee. Because a new salary table has not been developed during the salary reform, the a salary coefficient of these subjects are still applied according to Decree 204/2004/ND-CP.
+ Civil Servants:
- Class A3.1 civil servants have a salary coefficient from 6.2 – 8.0.
- Class A3.2 civil servants have a salary coefficient from 5.75 – 7.55.
- Class A2.1 civil servants have a salary coefficient from 4.4 – 6.78.
- Class A2.2 civil servants have a salary coefficient from 4.0 – 6.38.
- Class A1 civil servants have a salary coefficient from 2.34 to 4.98.
- Class A0 civil servants have a salary coefficient from 2.1 to 4.89.
- Class B civil servants have a salary coefficient from 1.86 – 4.06.
- Class C1 civil servants have a salary coefficient from 1.65 – 3.63.
- Class C2 civil servants have a salary coefficient from 1.5 – 3.48.
- Class C3 civil servants have a salary coefficient from 1.35 – 3.33.
+ Public employees:
- Class A3.1 public employees have a salary coefficient from 6.2 – 8.0.
- Class A3.2 public employees have a salary coefficient from 5.75 – 7.55.
- Class A2.1 public employees have a salary coefficient from 4.4 – 6.78.
- Class A2.2 public employees have a salary coefficient from 4.0 – 6.38.
- Class A1 public employees have a salary coefficient from 2.34 to 4.98.
- Class A0 public employees have a salary coefficient from 2.1 to 4.89.
- Class B public employees have a salary coefficient from 1.86 – 4.06.
- Class C1 public employees have a salary coefficient from 1.65 – 3.63.
- Class C2 public employees have a salary coefficient from 2.0 – 3.98.
- Class C3 public employees have a salary coefficient from 1.5 – 3.48.
Allowances
Similar to the salary coefficient, because the salary reform is delayed indefinitely, the policies related to salary allowances of cadres, civil servants, and public employees have not been implemented. Accordingly, at present, those who are receiving any type of allowances will continue to receive that allowance.
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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