Vietnam's base salary officially increased to VND 1.8 million from July 2023, Vietnam's base salary increased to VND 1.8 million from July 2023, Vietnam increased base salary to VND 1.8 million from July 2023, Vietnam's base salary officially increased to VND 1.8 million,

Vietnam’s base salary officially increased to VND 1.8 million from July 2023

After a period of discussion and voting, the Vietnam National Assembly officially approved the proposal to increase the base salary from 1.49 million VND to 1.8 million VND and also fixed the effective date of the policy. Thereby, Vietnam’s base salary will officially increase to 1.8 million VND from July 2023, not January 2023 as many delegates suggested.

On the afternoon of November 11, 2022, the National Assembly voted to approve the state budget estimate for 2023 with nearly 91% of the delegates approving. One of the most important policies is the change in the base salary – the salary regime used as the basis for calculating the salary received for officials, civil servants, public employees, etc. in the salary tables, allowances, and other modes.

From July 1, 2023, the base salary will increase to VND 1.8 million. This salary compared to the current base salary of VND 1.49 million represents an increase of 20.8%. The strong increase in the base salary is the result of the delay of nearly 3 years during the Covid-19 pandemic and also shows the attitude of the Vietnamese state toward supporting and solving difficulties for groups of civil servants and public employees working in the state.

In addition, the approved state budget estimate for 2023 also mentions the increase of other social welfare regimes such as pensions, social insurance benefits, and those who retire before 1995 with an increase of 12,5%. In addition to the salary received by officials working in the Vietnamese government, social security policies associated with the base salary will also have an increase of 20.8% compared to the current one.

In particular, health workers – specific professions that are subject to many dangers and risks and have shown great merit in the past 2 years of the pandemic, receive low wages, not commensurate with their work. In the next year, starting from January 1, 2023, health workers will continue to receive a special allowance and income mechanism to compensate for their losses and efforts.

It is expected that the total expenditure on salary reform and pension adjustment, allowances, and social security policies in 2023 is 12,500 billion VND.

Why raise the base salary so late?

Before the National Assembly voted, many delegates as well as experts in the field of labor and finance expressed the opinion that the change in the base salary should start from January 1, 2023, not from July 2023.

This idea received a lot of support, especially among representatives of the health sector, education, and areas with a high proportion of workers in these two occupations. Because cadres and civil servants working in these two professions have suffered many disadvantages, leading to the rate of them quitting their jobs recently increasing to an alarming level.

In this regard, Chairman of the Legal Committee Hoang Thanh Tung explained that it is difficult for Vietnam to increase the base salary from the beginning of 2023 because this is the time close to the New Year and the Lunar New Year (just over 20 days after the New Year’s Eve).

Mr. Tung reported to the National Assembly: “This is a sensitive time, the demand for purchasing goods and services of people and businesses increases sharply, creating pressure on price management due to the psychology of increasing price due to wage’s increase, putting pressure on inflation control and affecting people’s lives.”

Thereby, partly to avoid the risk of explosion, rapidly increasing the level of inflation in Vietnam and many other reasons such as to give more time to adjust the base salary system, etc., the increase in base salary to VND 1.8 million will officially take effect from July 1, 2023.

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.

    CONTACT

    Your infomation


    ***Other service of ASL LAW – full service Vietnam law firm ***

     

     

    Retainer service to enterprises

     

    International trademark registration

    Oversea investment consultancy for Vietnamese enterprises

     

    Patent in Vietnam

    PCT Patent in Vietnam

     

    PCT Patent Vietnam Entry

    Intellectual property services (Vietnam IP Firm)

     

    Vietnam Patent Agent

    Trademark in Vietnam

     

    Vietnam Patent Firm

    Vietnam Trademark Agent

     

    Patent translation in Vietnam

    How to register trademark in Vietnam

     

    Vietnam Patent Translation Agent

    Copyright in Vietnam

     

    Vietnam IP Firm

    Vietnam Trademark

     

    Vietnam IP Agent

    Notes to company formation in Vietnam

     

    M&A

    How to open company in Vietnam

     

    Banking & financial services

    Open representative office in Vietnam

     

    Contract consultancy

    Establish company in Vietnam

     

    Employment and labor

    Corporate services in Vietnam

     

    Litigation and dispute resolution

    Vietnam Law Firm

     

    Franchise in Vietnam

    Vietnam Antidumping Law Firm

     

    Vietnam Franchise registration

    Vietnam countervailing law firm

     

    Vietnam Business Law Firm

    Vietnam Real estate law firm

     

    Vietnam construction law firm

    Law firm in Hanoi

     

    Law Firm in Ho Chi Minh

    Debt collection in Vietnam

     

    Debt recovery law firm in Vietnam

    Debt collection law firm in Vietnam

     

    Vietnam Debt Collection law firm

    ASEAN IP Agent

     

    ASEAN IP FIRM

    IP agent in ASEAN

     

    Establish R.O in Vietnam

    Setting up a foreign-invested company

     

    Setup foreign company in Vietnam

    Technology Transfer in Vietnam

     

    Technology Transfer services

    Labour law in Vietnam

     

    Employment law in vietnam

    Vietnam franchise law firm

     

    International trademark registration

     

     

     

     

     

     

    Contact Me on Zalo
    +84366667697
    WhatsApp chat