Decree No. 38/2019/NĐ-CP on the basic salary level for cadres, civil servants, public officials, and armed forces personnel

DECREE

specifies the base salary level for cadres, civil servants, public officials, and armed forces personnel.

Pursuant to the Law on Government Organization dated June 19, 2015;

Based on the Labor Code dated June 18, 2012;

BASED ON Resolution No. 70/2018/QH14 dated November 9, 2018 of the National Assembly on the State budget estimate for 2019;

At the proposal of the Minister of Home Affairs and the Minister of Finance;

The Government issues a Decree to specify the base salary level for cadres, civil servants, public officials, and armed forces personnel.

Article 1. Scope of Regulation

This Decree stipulates the basic salary level applicable to cadres, civil servants, public officials, those receiving salaries and allowances, and workers (hereinafter referred to collectively as persons receiving salaries and allowances) working in agencies, organizations, public service units of the Party, State, political-social organizations, and associations supported by the State budget at the central, provincial, municipal levels directly under the central government, district, town, township, urban sub-district, town, special administrative-economic unit, and armed forces.

Article 2. Applicability

Persons receiving salaries and allowances as provided for in Article 1 of this Decree include:

1. Cadres and civil servants from the central to the district level as specified in Clause 1 and Clause 2 of Article 4 of the Civil Servants Law 2008.

2. Cadres and civil servants at the commune level as specified in Clause 3 of Article 4 of the Civil Servants Law 2008.

3. Public officials in public service units established under the Public Officials Law 2010.

4. Persons working under labor contracts with classified wages as prescribed in Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on wage systems for cadres, civil servants, public officials, and the armed forces, including: Persons working under labor contracts in agencies and units of the Party, State, and political-social organizations as prescribed in Decree No. 68/2000/NĐ-CP dated November 17, 2000 of the Government on implementing labor contracts for certain types of work in administrative agencies and public service units, and Decree No. 161/2018/NĐ-CP dated November 29, 2018 of the Government amending and supplementing certain provisions on recruitment of civil servants and public officials, promotion of civil servant ranks, upgrading of public official grades, and implementation of labor contracts for certain types of work in administrative agencies and public service units.

5. Persons working within the staffing quota in associations supported by the State budget as prescribed in Decree No. 45/2010/NĐ-CP dated April 21, 2010 of the Government on organization, operation, and management of associations.

6. Officers, professional military personnel, non-commissioned officers, soldiers, and defense public officials, contractual workers belonging to the Vietnam People's Army.

7. Officers, non-commissioned officers receiving salaries, non-commissioned officers, conscript soldiers, police workers, and contractual employees belonging to the Vietnam People's Public Security Force.

8. Persons working in confidential organizations.

9. Non-professional staff at commune level, village, and neighborhood.

Article 3. Basic Salary Level

1. The basic salary level serves as a basis for:

a) Calculating the salary levels in the salary tables, allowances, and implementing other systems according to the laws for the subjects specified in Article 2 of this Decree;

b) Calculating activity fees and living expenses as prescribed by law;

c) Calculating deductions and benefits based on the basic salary level.

2. As of July 1, 2019, the basic salary level is VND 1,490,000 per month.

3. The Government shall submit to the National Assembly for consideration the adjustment of the basic salary level in accordance with the State budget capacity, consumer price index, and national economic growth rate.

Article 4. Implementation funds

1. Ministries, ministerial-level agencies, government agencies, and other central-level agencies:

a) Utilizing the savings of 10% of regular expenditure (excluding salary, allowance, and other items with the nature of salary and expenditures for human resources according to regulations) in the 2019 budget compared to the 2018 budget as approved by the competent authority;

b) A portion of the revenue retained according to the system of administrative agencies and public service units;

c) Utilizing the remaining funds from the 2018 wage reform not fully utilized and carried over (if any);

2. Provinces and centrally-administered cities:

a) Utilizing the savings of 10% of regular expenditure (excluding salary, allowance, and other items with the nature of salary and expenditures for human resources according to regulations) in the 2019 budget compared to the 2018 budget as approved by the competent authority;

b) Utilizing the source of 50% of increased local government revenue (excluding land use fees and lottery revenues) compared to the 2018 budget as directed by the Prime Minister;

c) Utilizing 50% of the reduction in State budget expenditure on regular activities in the administrative sector (due to streamlining of staff and organizational restructuring for efficiency and effectiveness) and public service units (due to reform of the organizational structure and management system, improving quality and efficiency of operations of public service units);

d) Utilizing the remaining funds from the 2018 wage reform not fully utilized and carried over (if any);

đ) Utilizing any surplus (if any) after ensuring the need to adjust wages up to the basic salary level of VND 1,390,000 per month from the following sources:

- Savings of 10% of regular expenditure (excluding salary, allowance, and other items with the nature of salary and expenditures for human resources according to regulations) in the 2017 budget as approved by the competent authority.

- Savings of 10% of regular expenditure (excluding salary, allowance, and other items with the nature of salary and expenditures for human resources according to regulations) in the 2018 budget compared to the 2017 budget as approved by the competent authority.

- 50% of increased local government revenue (excluding land use fees and lottery revenues) in the 2018 budget compared to the 2017 budget as directed by the Prime Minister.

- 50% of increased local government revenue (excluding land use fees and lottery revenues) in the 2019 budget compared to the 2018 budget as directed by the Prime Minister.

- A portion of the revenue retained according to the system in 2019 of administrative agencies and public service units.

3. The central budget will supplement the shortfall in funding due to the adjustment of the basic salary level in 2019 for ministries, ministerial-level agencies, government agencies, and other central agencies and provinces, cities directly under the central government after implementing the provisions of Clauses 1 and 2 of this Article.

Article 5. Effective Date

1. This Decree takes effect from July 1, 2019.

2. Decree No. 72/2018/NĐ-CP dated May 15, 2018 of the Government on the basic salary level for cadres, civil servants, public officials, and the armed forces ceases to be effective from the date this Decree takes effect.

Article 6. Responsibilities for guidance and implementation

1. The Minister of Home Affairs shall guide the implementation of the provisions of this Decree for persons receiving salaries and allowances in agencies, organizations, and units of the Party, State, political-social organizations, and associations.

2. The Ministers of National Defense and Public Security shall guide the implementation of the provisions of this Decree for individuals within their respective jurisdictions;

3. The Minister of Finance:

a) Guide the determination of needs, sources, and methods of expenditure for implementing the basic salary level prescribed in this Decree;

b) Review the needs and supplement the shortfall in funding due to the adjustment of the basic salary level of ministries, ministerial-level agencies, government agencies, and other central agencies and provinces, cities directly under the central government as prescribed in this Decree, compile and report to the Prime Minister the results of implementation.

2. The Ministers of National Defense, Public Security, and other ministers and sector heads shall be responsible for providing professional guidance and technical support to implement clinical pharmacy activities for medical examination and treatment facilities under their management authority.