The Ministry of Home Affairs (MHA) has released a statement about a government decree stipulating the base salary of cadres, civil servants, public employees and officers of the armed forces. The document has been sent to the Ministry of Justice for appraisal.

The base salary is expected to be raised from VND1.49 million a month to VND1.8 million, commencing from July 1, 2023, which means a 20.8 percent increase.

The base salary will be used to calculate salaries on payrolls and allowances, and it will implement other regimes prescribed by the law for cadres, civil servants, public employees and officers of the armed forces.

The increase of the base salary to VND1.8 million will help improve the living standards of employees.

Ministries, ministerial-level agencies, government’s agencies and other central agencies can use money from four sources to implement the policy on salary adjustment in accordance with the new base salary scheme:

First, using 10 percent of recurring expenditure savings in 2023 estimates, assigned by competent agencies to adjust salaries.

Second, agencies and non-business public units which can collect fees for public services can use a portion of the fees collected to implement salary reform after deducting relevant expenses.

Third, the funding for implementing salary reform of public employees and employees in group 1 and group 2 public non-business units, is self-financed by the units.

Fourth, funds can come from the budget reserved for wage reform in 2022 which has not been used up and carried forward to 2023.

Provinces and cities are allowed to use 10 percent of savings in regular expenses in 2023 estimates approved by competent agencies, and use 70 percent of the implemented increases in local budget collections in comparison with the estimates assigned by the Prime Minister.

In addition, provinces and cities can use budgets for wage reform for 2022, which has not been used up and carried forward to 2023 (if any); use 40 percent at least of the receipts which can be retained in accordance with the regulations in 2023.

Regarding the receipts from providing health examination, treatment, medical preventive and other medical services of public health facilities, the maximum proportion to be used is 35 percent.

MHA has also proposed that redundant cadres who retire before age are entitled to a subsidy of VND1.8 million a month.

Thu Hang