Recently, the Government has issued Decree 24/2023/ND-CP replacing Decree 38/2019/ND-CP mentioning the official increase of the base salary from 1.490.000 VND to 1.800.000 VND. effective from 1/7/2023.
What is base salary? #
According to the provisions of Clause 1, Article 3 of Decree 38/2019/ND-CP, the base salary is understood as the basis for calculating:
- Salary levels, allowances and other regimes in the salary tables as prescribed by law for the subjects;
- Fees for subsistence and operating expenses as prescribed by law;
- Funding deductions and benefits to employees and employees.
How does the salary of cadres and civil servants change after increasing the base salary? #
On 11/11/2022, the National Assembly officially approved the Resolution on the state budget estimate for 2023. Thereby, starting from 1/7/2023, increasing the base salary for cadres and workers. employees up to 1.800.000 VND/month, an increase of 20,8% compared to the current base salary applied at 1.490.000 VND/month.
The salary of civil servants and public employees is calculated according to the formula specified in Decree 204/2004/ND-CP as follows:
Salary = Base salary x Salary coefficient
Example: A civil servant class A0 has a starting salary coefficient of 2,41. If calculated according to the base salary of 1.490.000 VND, the salary received is 3.590.000 VND/month. When the base salary is increased to 1.800.000 million VND, the salary increases to 4.338.000 VND/month.
The monthly salary and income increase from 1/7/2023 is based on the base salary of 1,8 million VND/month under the specific mechanism, which needs to ensure that it does not exceed the average annual salary and additional income. 2022 (excluding the increase due to the adjustment of the salary coefficient by rank or grade).
Change the maximum salary paid for social insurance when increasing the base salary #
According to the provisions of Clause 3, Article 89 of the Law on Social Insurance 2014, the monthly salary on which social insurance premiums are based is equal to 20 times the base salary.
The current base salary from January 01, 01 to June 2023, 30 is VND 06/month, which means the maximum salary paid for compulsory social insurance from January 2023, 1.490.000 to June 01, 01. is 2023 VND/month.
However, according to Decree 24/2023/ND-CP, from July 01, 07, a base salary of 2023 million VND/month applies. Thus, the maximum salary for payment of compulsory social insurance from July 1.8, 01 is VND 07.
What is the monthly salary for payment of compulsory social insurance in 2023? #
For employees who pay social insurance premiums according to the salary regime decided by the employer: The monthly salary on which social insurance premiums are based is the salary, salary allowance and other additional amounts specified at Point a, details b1 point b and section c1 point c clause 5 Article 3 Circular 10 / 2020 / TT-BLĐTBXH. Specifically:
(first). Salary by job or title:
Enter the time-based salary of the job or title according to the salary scale, the salary table developed by the employer in accordance with the provisions of Article 93. Labor Code;
For employees who receive salary by product or package salary, write the salary calculated by time to determine the product unit price or package salary;
(2). Salary allowance as agreed by both parties:
Wage allowances to compensate for factors on working conditions, job complexity, living conditions, and level of labor attraction that the salary agreed upon in the labor contract has not been taken into account or calculated. not enough.
(3). Other additional amounts as agreed by both parties are as follows:
The additional amounts determine the specific amount along with the salary agreed in the labor contract and paid regularly in each pay period.
Who is eligible to increase the base salary? #
Decree 24/2023/ND-CP stipulates that the base salary will apply to the following specific subjects:
- Group 1: Cadres and civil servants from the central to the district level specified in Clauses 1 and 2, Article 4 of the Law on Cadres and Public Officials 2008;
- Group 2: Cadres and civil servants at the commune level specified in Clause 3, Article 4 of the Law on Cadres and Civil servants 2008;
- Group 3: Public employees working in public units in accordance with the Law on Public Employees 2010;
- Group 4: People who do jobs under the labor contract regime specified in Decree 111/2022/ND-CP with some types of work in administrative agencies, units of the Party, the state, and organizations socio-political in cases where it is applied or agreed upon in the labor contract;
- Group 5: Subjects working in the payroll quotas at associations are supported with operating expenses from the state budget according to the provisions of Decree 45/2010/ND-CP of the Government on organization, operation and association management;
- Group 6: Officers, professional soldiers, non-commissioned officers, soldiers, workers, defense officers and contract workers of the Vietnam People's Army;
- Group 7: salaried officers and non-commissioned officers, non-commissioned officers, conscripts, public security workers and contract workers of the People's Police;
- Group 8: Subjects working in cipher organizations;
- Group 9: Non-specialist workers at commune, village and neighborhood levels.
In addition, the Decree also stipulates that in case units and agencies implement specific financial and income mechanisms, they will continue to implement them until there is an overall reform of the salary policy.
