Circular No. 50/2023/TT-BTC guiding the determination of needs, sources, and methods of expenditure to implement the adjustment of the minimum wage base according to Decree No. 24/2023/NĐ-CP dated May 14, 2023, and the adjustment of monthly allowances for retired village cadres according to Decree No. 42/2023/NĐ-CP dated June 29, 2023.

CIRCULAR

GUIDELINES FOR DETERMINING REQUIREMENTS, SOURCES, AND METHODS OF EXPENDITURE TO IMPLEMENT THE ADJUSTMENT OF THE BASIC WAGE LEVEL ACCORDING TO DECREE NO. 24/2023/NĐ-CP OF MAY 14, 2023 AND THE ADJUSTMENT OF MONTHLY ALLOWANCES FOR RETIRED RURAL OFFICIALS ACCORDING TO DECREE NO. 42/2023/NĐ-CP OF JUNE 29, 2023 OF THE GOVERNMENT

Pursuant to the Government Decree No. 24/2023/NĐ-CP dated May 14, 2023 on the basic salary for civil servants, public officials, and armed forces personnel;

Pursuant to Decree No. 42/2023/NĐ-CP dated June 29, 2023 of the Government adjusting pensions, social insurance benefits, and monthly allowances;

Pursuant to Decree No. 14/2023/NĐ-CP dated April 20, 2023, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to the proposal of the Director of the State Budget Department;

The Minister of Finance issues this Circular guiding the determination of requirements, sources, and methods of expenditure to implement the adjustment of the basic wage level according to Decree No. 24/2023/NĐ-CP of May 14, 2023 of the Government and the adjustment of monthly allowances for retired rural officials according to Decree No. 42/2023/NĐ-CP of June 29, 2023 of the Government.

Article 1. Scope of Regulation and Applicability

2. Applicability:

This Circular stipulates the procedures for determining requirements, sources, and methods of expenditure to implement:

a) Adjustment of the basic wage level for individuals working in agencies, organizations, and units as prescribed in Decree No. 24/2023/NĐ-CP of May 14, 2023 of the Government on the basic wage level for cadres, civil servants, public officials, and armed forces personnel (hereinafter referred to as Decree No. 24/2023/NĐ-CP).

b) Adjustment of the allowance fund for non-professional staff at commune, village, and neighborhood levels according to the quota specified in Decree No. 34/2019/NĐ-CP of April 24, 2019 of the Government amending and supplementing certain provisions on commune-level cadres and civil servants and non-professional staff at commune, village, and neighborhood levels, and Decree No. 33/2023/NĐ-CP of June 10, 2023 of the Government on commune-level cadres and civil servants and non-professional staff at commune, village, and neighborhood levels.

c) Adjustment of allowances for retired rural officials according to Decision No. 130/CP of June 20, 1975 of the Council of Ministers and Decision No. 111-HĐBT of October 13, 1981 of the Council of Ministers as prescribed in Decree No. 42/2023/NĐ-CP of June 29, 2023 of the Government adjusting pensions, social insurance benefits, and monthly allowances (hereinafter referred to as Decree No. 42/2023/NĐ-CP).

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

a) Ministries, ministerial-level agencies, government agencies, and other central-level agencies.

b) People's Committees of provinces and centrally-administered cities.

c) Agencies, units, organizations, and individuals related to the matter.

Article 2. Determination of financial requirements for the adjustment of the basic wage level according to Decree No.

1. The subjects of cadres, civil servants, public officials, and workers whose basic wage level is adjusted shall be implemented in accordance with Circular No. 10/2023/TT-BNV dated June 26, 2023 of the Ministry of Home Affairs guiding the implementation of the basic wage level for individuals receiving salaries and allowances in state-owned public institutions of the Party, State, Vietnam Fatherland Front, political and social organizations, and associations and other competent authorities' documents. Among these, it is recommended to pay attention to the following contents:

a) The total number of cadres, civil servants, public officials, and workers to determine the financial requirements for the adjustment of the basic wage level is the actual number present on July 1, 2023 within the scope of the authorized staffing quota (or approved).

b) Do not aggregate the number of individuals exceeding the authorized staffing quota for 2023; agencies and units are responsible for handling excess staffing quotas in accordance with the law.

c) Do not aggregate the number of individuals who work under contracts as stipulated in Clause 4, Article 2 of Decree No. 24/2023/NĐ-CP; agencies and units allocate from the state budget allocation and other legitimate revenue sources to pay these individuals as stipulated in Article 12 of Decree No. 111/2022/NĐ-CP dated December 30, 2022 of the Government regarding contracts for certain types of work in administrative agencies and state-owned public institutions.

2. Financial requirements for the adjustment of the basic wage level according to Decree No. 24/2023/NĐ-CP for the subjects mentioned in Clause 1 of this Article shall be based on the increased amount of the basic wage; salary coefficients according to rank, grade, and position; salary allowance coefficients according to the established system (excluding night shift wages, overtime wages, and allowances defined by absolute amounts), the ratio of contributions according to the system (social insurance, unemployment insurance, health insurance, trade union fees). In which, the method of determining the salary and allowances is carried out in accordance with the guidance of the Ministry of Home Affairs and other competent authorities.

At the same time, it includes additional financial requirements due to the adjustment of the basic wage level to implement the following systems and policies:

a) Health insurance payments for relatives of officers, professional military personnel, non-commissioned officers, soldiers in the Ministry of National Defense; relatives of defense industry workers and public officials (belonging to units funded by the state budget); relatives of officers, non-commissioned officers in specialized positions, officers, non-commissioned officers in technical and professional positions, students of the People's Public Security Forces, non-commissioned officers, soldiers serving on a fixed-term basis in the People's Public Security Forces, public security workers, and relatives of those engaged in confidential work.

b) Responsibility allowance system for members of various levels of party committees according to Regulation No. 169-QĐ/TW dated June 24, 2008 of the Politburo; monthly subsidy system for serving activities of provincial-level party committees according to Regulation No. 09-QĐ/VPTW dated September 22, 2017 of the Central Party Office.

c) Activity fees for representatives of all levels of People's Councils.

d) Support for the allowance fund for non-professional staff at communes, towns, townships, villages, and neighborhoods from the state budget.

3. Only central administrative agencies currently implementing special financial mechanisms and income arrangements shall follow the provisions of Article 4 of this Circular.

4. The financial requirements of provinces and centrally-administered cities include the portion of the state budget allocated to implement the allowance system for public officials and employees in public health facilities according to Decree No. 05/2023/NĐ-CP dated February 15, 2023 of the Government, the policy on streamlining the establishment, early retirement policy, and leave of absence until reaching retirement age for subjects managed by localities according to the regulations of Decree No. 108/2014/NĐ-CP dated November 20, 2014 of the Government on policies for streamlining the establishment, Decree No. 113/2018/NĐ-CP dated August 31, 2018 of the Government amending and supplementing some articles of Decree No. 108/2014/NĐ-CP dated November 20, 2014 of the Government on policies for streamlining the establishment (hereinafter referred to as Decree No. 113/2018/NĐ-CP), Decree No. 143/2020/NĐ-CP dated December 10, 2020 of the Government amending and supplementing some articles of Decree No. 108/2014/NĐ-CP dated November 20, 2014 of the Government on policies for streamlining the establishment and Decree No. 113/2018/NĐ-CP dated August 31, 2018 of the Government amending and supplementing some articles of Decree No. 108/2014/NĐ-CP dated November 20, 2014 of the Government on policies for streamlining the establishment (hereinafter referred to as Decree No. 143/2020/NĐ-CP), Decree No. 29/2023/NĐ-CP dated June 3, 2023 of the Government stipulating streamlining the establishment, and Decree No. 26/2015/NĐ-CP dated March 9, 2015 of the Government stipulating the system and policies for cadres not yet eligible for re-election or re-appointment to positions or titles during their term in agencies of the Communist Party of Vietnam, State, political and social organizations (hereinafter referred to as Decree No. 26/2015/NĐ-CP) and guiding documents of competent authorities. 5. The need for funds to adjust additional allowances for retired village cadres is determined based on the actual number of beneficiaries present as of July 1, 2023, the additional allowance levels prescribed in Decree No. 42/2023/NĐ-CP, and the guidance of the Ministry of Home Affairs regarding the adjustment of monthly allowances.

6. The need for funds to implement supplementary allowances and benefits calculated based on salary, rank, grade, or basic salary level issued by the Government, Prime Minister, and guidance from central ministries and agencies after July 1, 2023 (if any) will be consolidated into the need for funds to implement salary reform in 2023 and handled according to the provisions of this Circular.

Article 3. Determination of funding sources for adjusting the basic salary level according to Decree No. 24/2023/NĐ-CP and adjusting allowances for retired village cadres according to Decree No. 42/2023/NĐ-CP.

1. Funding sources for implementing Decree No. 24/2023/NĐ-CP in 2023 of central ministries and agencies:

b) Utilize at least 40% of retained revenue under the 2023 regime after deducting direct costs related to service provision and fee collection. For revenue from providing medical examination, treatment, preventive healthcare, and other health services by public healthcare facilities, utilize at least 35% after deducting direct costs related to service provision and fee collection. The scope of retained revenue utilization shall be in accordance with Clause 3 of this Article.

c) Utilize funds saved from regular expenditure (excluding salary, allowances based on salary, items with salary characteristics, and expenditures for personnel according to the regime) in the 2023 budget that exceeds the 2022 budget as allocated by the competent authority.

2. Funding sources for implementing Decree No. 24/2023/NĐ-CP and Decree No. 42/2023/NĐ-CP of provincial and centrally-administered city-level authorities:

a) Utilize funds saved from regular expenditure (excluding salary, allowances based on salary, items with salary characteristics, and expenditures for personnel according to the regime) in the 2023 budget as allocated by the competent authority.

b) Utilize 70% of increased local government revenue in 2022 compared to the approved budget by the Prime Minister (excluding land use fees, lottery proceeds, proceeds from state-owned enterprise equitization and divestment managed by localities, advance payments for land compensation and clearance, proceeds from asset disposal at agencies, organizations, and units authorized by competent authorities to use for investment according to regulations; rice field protection and development fees; fees for visiting historical sites and world heritage sites; fees for using infrastructure and public service facilities in border areas; environmental protection fees for mineral extraction; environmental protection fees for wastewater; proceeds from public land funds, income from public assets at commune level, and rental, lease-purchase, and sale proceeds from state-owned houses).

c) Utilize unutilized funds from salary reform up to the end of 2022 transferred (if any).

d) Utilize at least 40% of retained revenue under the 2023 regime after deducting direct costs related to service provision and fee collection. For revenue from providing medical examination, treatment, preventive healthcare, and other health services by public healthcare facilities, utilize at least 35% after deducting direct costs related to service provision and fee collection. The scope of retained revenue utilization shall be in accordance with Clause 3 of this Article.3. The scope of retained revenue utilization as stipulated in Clauses 1 and 2 of this Article shall be implemented as follows:: For administrative state agencies (excluding cases where the competent authority permits the implementation of financial autonomy mechanisms such as self-financing public service units for both investment and regular expenses or self-financing public service units for regular expenses; agencies and units entrusted with budget allocations and self-financing salaries by the competent authority): Utilize at least 40% of retained revenue from fees (fees listed in the legal regulations on fees and charges) after deducting direct costs related to service provision and fee collection.

including costs

already used to implement

the basic salary level of 1,490,000 VND/month) as stipulated in legal regulations on fees and charges (direct costs for collection activities shall not be deducted if they are covered by the state budget).

a) For administrative state agencies (except for cases where the competent authority permits the implementation of a financial autonomy mechanism such as public service units that self-finance investment expenditures and recurrent expenditures or public service units that self-finance recurrent expenditures; agencies and units entrusted with budget allocations and self-financing salaries by the competent authority): At least 40% of the revenue from fees (fees within the list prescribed by laws on fees and charges) retained under the regulations after deducting direct costs related to service provision and fee collection activities shall be used. (including costs already used to implement Article 2. Effectiveness of enforcement the base salary level of 1.49 million VND/month) as prescribed by laws on fees and charges (direct costs serving the collection work shall not be deducted if such costs have been guaranteed by the state budget).

b) For public service units that self-finance part of their regular expenses and public service units whose regular expenses are guaranteed by the state budget:

Regarding revenue from fees (fees included in the list of fees as prescribed by laws on fees and charges): At least 40% of the retained fee revenue, after deducting directly related costs to service provision and fee collection activities (including costs already used for implementing the basic salary level of 1.49 million VND/month) as stipulated by laws on fees and charges (excluding direct costs serving the fee collection work if such costs have been guaranteed by the state budget).

Regarding revenue from providing medical examination and treatment services, preventive healthcare services, and other healthcare services by public health facilities: At least 35% of the retained revenue, after deducting costs already structured into the service price as prescribed by laws on service pricing (such as drug costs, blood, intravenous fluids, chemicals, consumable materials, direct environmental sanitation costs, electricity, water, fuel, waste disposal, maintenance and repair costs of equipment, purchase of tools and equipment, and salaries and allowances already structured into the price).

Regarding service revenue (including tuition fees), joint venture activities, and other revenues: At least 40% of the surplus revenue after expenses (after fulfilling all obligations to the State as prescribed).

4. Public service units that self-finance investment and regular expenses, public service units that self-finance regular expenses, agencies authorized by competent authorities to implement financial autonomy mechanisms like those that self-finance investment and regular expenses or those that self-finance regular expenses, and agencies and units assigned a budget quota and self-finance salaries: These units decide the proportion of revenue to be set aside to create sources for salary reform and self-finance salary adjustment funds according to Decree No. 24/2023/NĐ-CP.

5. The central budget will support additional salary adjustment funding needs for ministries, central agencies, and localities after balancing existing salary adjustment funding sources that are insufficient to meet the requirements of the salary reform system.

Article 4. For central administrative agencies currently implementing special financial mechanisms and income arrangements

1. Central administrative agencies currently implementing special financial mechanisms and income arrangements must pay monthly salaries as prescribed; simultaneously, they must reduce additional income under the special mechanism to ensure that the monthly salary level and additional income, calculated based on the basic salary of 1.8 million VND/month starting from July 1, 2023, under the special mechanism does not exceed the average additional income in 2022 (excluding additional income due to salary coefficient adjustments when advancing grades or ranks) as stipulated in Clause 2, Article 3 of Resolution No. 69/2022/QH15 of the National Assembly and Decision No. 1506/QĐ-TTg dated December 2, 2022 of the Prime Minister regarding the allocation of the state budget for 2023.

2. The source of funds to ensure the salary fund for 2023 (including additional funds from salary reform) for central administrative agencies currently implementing special financial mechanisms and income arrangements shall come from regular operating funds as prescribed by specialized laws, Resolutions of the Standing Committee of the National Assembly, Resolutions of the Government, Decisions of the Prime Minister, and other relevant documents concerning financial mechanisms and income linked to the specific characteristics of administrative state agencies.

Article 5. Report on funding requirements and sources for implementing Decree No. 24/2023/NĐ-CP and Decree No. 42/2023/NĐ-CP

(Ministries and central agencies shall submit reports on funding requirements and sources using Form No. 1 and 3; provinces/cities directly under the Central Government shall submit reports on funding requirements and sources using Forms No. 2a, 2b, 2c, 2d, 2e, 2g, 4a, and 4b issued together with this Circular)

Article 6. Method of disbursing funds for implementing Decree No..

1. Ministries and central agencies shall direct and guide units to proactively utilize available funding sources as prescribed to pay additional salaries to civil servants, public officials, civil servants, and workers in accordance with the stipulated regulations.

2. For provinces/cities directly under the Central Government where the funding source exceeds the funding requirement for implementing Decree No. 24/2023/NĐ-CP and Decree No. 42/2023/NĐ-CP, they shall proactively use local salary reform funds to supplement the funding sources for budgetary units at their level and subordinate levels that are still lacking.

3. For regions where the funding requirement for implementing the provisions of Decree No. 24/2023/NĐ-CP and Decree No. 42/2023/NĐ-CP exceeds the prescribed funding sources in this Circular:

Pending the competent authority's supplementation of funds, the higher-level budget shall temporarily allocate funds to the lower-level budget that lacks sufficient sources. Regions shall submit a report to the Ministry of Finance to request temporary allocation of funds for implementation. The temporarily allocated funds will be deducted when the competent authority supplements the required funds according to regulations.

Budget-using entities may proactively utilize the 2023 budget allocation and retained revenue according to the regulations to promptly pay additional salaries, allowances, and subsidies to the specified groups as stipulated in this Circular; and report to the superior management agency about any remaining funding requirements (if any) for handling according to regulations.

Accounting and settlement: The accounting and settlement of funds for implementing salaries, allowances, and subsidies for the specified groups as stipulated in this Circular shall be carried out in accordance with the State Budget Law and current legal documents.

1. This Circular takes effect from August 31, 2023.

Article 7. Implementation Organization

2. Circular No. 46/2019/TT-BTC dated July 23, 2019, of the Ministry of Finance guiding the determination of funding requirements, sources, and methods of disbursement for implementing adjustments to the basic salary according to Decree No. 38/2019/NĐ-CP dated May 9, 2019, of the Government and adjustments to monthly allowances for retired village cadres according to Decree No. 44/2019/NĐ-CP dated May 20, 2019, of the Government shall cease to be effective from the date this Circular comes into force.

3. In cases where the legal documents cited in this Circular are amended, supplemented, or replaced by other legal documents, the provisions of the amended, supplemented, or replacing documents shall apply.

4. Based on the provisions of Decree No. 24/2023/NĐ-CP, Decree No. 42/2023/NĐ-CP, and the guidance provided in this Circular, ministries, central agencies, and provinces/cities directly under the Central Government shall be responsible for:

a) Organizing, guiding, and aggregating the funding requirements and sources for adjusting the basic salary of agencies, units, and subordinate levels; adjusting the allowance fund for non-professional staff at the commune, village, and ward levels according to the quota; adjusting monthly allowances for retired commune cadres, and submitting to the Ministry of Finance in accordance with this Circular.

b) Determining and allocating adequate and timely funding sources to pay to the specified groups in accordance with the stipulated regulations and guidance in this Circular.

c) Based on the specific situation of the agency or region, determining the time frame and reporting forms for units and subordinate budgets consistent with the regulations on reporting to the Ministry of Finance in this Circular.

During the implementation process, if there are any difficulties, ministries, central agencies, and provinces/cities directly under the Central Government shall submit a report to the Ministry of Finance for prompt consideration and resolution.

- Department of Finance, KBNN of provinces/cities directly under the Central Government;

ATTACHED DOCUMENT