Decree No. 72/2018/ND-CP on the basic salary level for officials, civil servants, public employees, and armed forces personnel

DECREE

REGULATIONS ON THE BASIC WAGE FOR OFFICIALS, CIVIL SERVANTS, CIVIL SERVICE MEMBERS, AND MILITARY PERSONNEL

On the basis of Law on Government Organization dated June 19, 2015;

On the basis of Labor Code Pursuant to Decree No. 87

Article 1. Standard level for determining preferential allowances for persons with meritorious service to the revolution and preferential allowances

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 wage applicable to officials, civil servants, civil service members, those receiving salaries and allowances, and workers (hereinafter collectively referred to as salary and allowance recipients) working in agencies, organizations, public service units of the Party, State, political-social organizations, and associations supported by the state budget at central, provincial, municipal levels directly under the central government, district, town, township, urban districts, towns within provinces, municipalities directly under the central government (district level), communes, wards, towns (commune level), special administrative-economic units, and military forces.

Article 2. Applicability

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

1. Officials and civil servants from central to district levels as specified in Clause 1 and Clause 2, Article 4 of the Law on Officials and Civil Servants 2008;

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

3. Civil service members in public service units as prescribed in the Civil Service 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 officials, civil servants, civil service members, and military personnel, including:

a) 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 the system of certain types of work contracts in state administrative agencies and public service units;

b) Persons working under labor contracts within the number of employees approved by competent authorities in public service units as prescribed by the Government;

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

6. Officers, professional soldiers, non-commissioned officers, soldiers, and defense civil servants, 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 workers 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, 2018, the basic wage is 1,390,000 VND/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, governmental agencies, and other agencies at the central level shall continue to implement regulations on policies to create sources for wage reform in combination with thorough cost savings linked to reorganizing organizational structures, reducing staff quotas, and promoting financial autonomy of public service units based on the state budget allocation, striving to increase revenue sources as prescribed and using remaining funds from the 2017 wage reform implementation (if any) to ensure self-balancing of increased expenditure due to the adjustment of the basic wage in 2018.

2. Provinces and centrally-administered cities:

a) Utilize the source of saving 10% of regular expenses (excluding salary, allowances, and other items with similar nature and expenses for human resources according to regulations) in the 2018 budget compared to the 2017 budget allocated by the competent authority.

b) Utilize 50% of the increased local budget revenue (excluding land use fees and lottery revenues) in comparison to the 2017 budget as assigned by the Prime Minister.

c) Utilize remaining funds from the 2017 wage reform implementation (if any).

d) Utilize surplus funds (if any) after ensuring the need to adjust wages up to the basic wage of 1,300,000 VND/month from the following sources:

- Saving 10% of regular expenses (excluding salary, allowances, and other items with similar nature and expenses for human resources according to regulations) in the 2017 budget allocated by the competent authority; combining thorough cost savings linked to reorganizing organizational structures, reducing staff quotas, and promoting financial autonomy of public service units.

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

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

d) For some difficult-budget localities, after implementing the provisions in points a, b, c, and d of this clause and still lacking sources to implement the 2018 wage reform, the central budget will supplement the shortfall to enable the locality to implement it.

Article 5. Effective Date

1. This Decree takes effect from July 1, 2018.

2. This Decree replaces Decree No. 47/2017/NĐ-CP dated April 24, 2017 of the Government on the basic wage for officials, civil servants, civil service members, and military personnel.

Article 6. Responsibilities for guidance and implementation

1. The Minister of Home Affairs shall guide the implementation of the provisions of this Decree for salary and allowance recipients 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 to implement the basic wage prescribed in this Decree.

b) Review the needs and funding sources to implement the basic wage according to this Decree for provinces and centrally-administered cities, and supplement the shortfall in funding for poor and difficult-budget localities after implementing the mechanism to create sources for wage reform as prescribed, compile and report

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.