Information about the increase base salary in 2024 will be of interest to many readers because it is related to the pocketbooks of many workers as well as executives, civil servants, public employees and armed forces. On May 14, 2023, the Government issued Decree 24/2023/ND-CP regulating the base salary of cadres, civil servants, public employees and armed forces.

1. What is the base salary?

The base salary is the base for calculating the salary of cadres, civil servants, public employees… in implementing the salary scale, allowance regime and other regimes.

In addition, the base salary is also used to calculate operating and living expenses according to the provisions of law.

2. Regulations on increasing base salary in 2024

Based on Article 3 of Decree 24/2023/ND-CP, the base salary will increase from VND 1.49 million/month to VND 1.8 million/month from July 1, 2023.

2.1 Groups of subjects whose base salary will be increased to 1.8 million from July 1, 2023

• Cadres and civil servants from central to district level according to Article 4, Clause 1 and Article 2 of the 2008 Law on Cadres
• Cadres and civil servants at local government level according to Article 4 of the 2008 Law on Cadres and Civil Servants
• Civil servants of public service units according to the provisions of the 2010 Law on Civil Servants
• In cases where the salary scale according to Decree 204/2004/ND-CP or agreed upon in the labor contract is applied, the work will be under the labor contract system prescribed by Decree 111/2022/ND-CP.
• People working within the salary standards of the Institute are supported by the state budget for operating expenses according to the provisions of Decree 45/2010/ND-CP
• Officers, professional soldiers, non-commissioned officers, soldiers, workers, defense officials, and contract workers of the Vietnam People’s Army.
• Salaried officers, non-commissioned officers, non-commissioned officers on duty, duty, people’s police and contract workers of the People’s Police;
• People working in key organizations.
• Individuals working part-time at the community, village, and neighborhood levels.

2.2 What is the base salary of 1.8 million used for?

Implement other regulations according to the provisions of law on calculating salaries, allowances and items in Article 3 of the salary table.

Calculate operating and living expenses according to the provisions of law.

Calculate deductions and allowances based on the base salary.

Continue to issue specific financial and revenue mechanisms for agencies, departments and branches implementing specific financial and revenue mechanisms at the Central level as prescribed by competent authorities for many agencies under the Government. , state administration while waiting for the implementation of the Overall Project on salary policy reform on the basis of Resolution 27-NQ/TW dated May 21, 2018. Increase monthly salary and income according to the base salary level of VND 1,800,000/month from July 1, 2023, according to a special mechanism to ensure that it does not exceed the average salary and additional income of 2022 (excluding adjusted salary and additional income of) salary coefficient according to grade and level at the time of promotion and rank).

2.3 Budget for increasing the base salary to 1.8 million from July 1, 2023

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

• Authorized authorities will allocate 10% of the 2023 regular expenditure savings estimate (excluding salary according to the regime, salary allowances, wages and personnel costs) compared to the 2022 estimate.
• Administrative management agencies and public service units collecting road tolls are allowed to allocate a portion of the remaining road toll revenue after deducting directly related costs according to regulations to implement salary reform. For service provision and toll collection activities.
• If there is a source of salary reform for 2022 that has not been exploited, we will take advantage of it.

Provinces and centrally run cities:

• 10% of the estimated savings in 2023 for regular expenditures have been allocated by competent authorities (excluding salaries according to the regime, salaries and personnel costs).
• 70% is used to increase local budget revenue compared to the estimate (excluding land use fees, lottery, equitization, liquidation of local state-owned enterprises, money) Investors are publicly compensated, confiscated, given priority for a term of land lease, ownership rights of agencies, organizations, units used by competent authorities according to the provisions of law on capital expenditure, charter, collection of fees for protection and development of fields, monuments and fees for visiting world heritage sites in the gate area of ​​infrastructure works, construction services, use of imported public works environmental protection fees for mineral exploitation environmental protection fees for wastewater collected from public land funds, collected from the community and public assets, rent, lease, purchase and sale. state-owned housing) allocated by the Prime Minister.
• Take advantage of untapped sources of salary reform in 2022 (if any).
• Use at least 40% of the remaining recovery according to the 2023 Plan after deducting costs directly related to service provision and payment. Specifically, the minimum rate of 35% applies to income from the provision of medical, preventive and other medical services of public health facilities. The level of deduction of retained income will be determined according to the Ministry of Finance’s guidance on the need and funding sources for salary reform in 2023.

The central budget will compensate for the shortfall to adjust the base salary level in 2023 for ministries, ministerial-level agencies, government agencies, and other agencies in provinces and centrally run cities. The Central Government after implementing the provisions in Article 4, Clauses 1 and 2 of Decree 24/2023/ND-CP.

The budget for implementing salary reform for civil servants and public employees of Group 1 and Group 2 public service units is prescribed in Decree 60/2021/ND-CP and other relevant regulations.

2.4 When will the base salary increase?

According to Decree 24/2023/ND-CP, the base salary will officially increase to 1.8 million VND from July 1, 2023.

Currently, the base salary according to Decree 38/2019/ND-CP is 1,490,000 VND/month.

3. Increase in base salary in 2024, how will the income of cadres and civil servants be calculated?

Currently, according to Decree 204/2004/ND-CP, the salary of cadres and civil servants is calculated according to the following formula:

Salary = base salary x salary coefficient

4. Some allowances calculated according to the base salary in 2024

According to “Decree 204/2004/ND-CP” and its amendments and supplements, cadres, civil servants and public employees are entitled to regimes equivalent to the base salary, including:

Toxic allowance

According to Article 6, Clause 7 of Decree 204/2004/ND-CP, toxic and toxic allowances are applied to cadres, civil servants and professional and technical cadres, civil servants and public employees doing work with dangerous and special working conditions. No harmful or dangerous differences in salary have been determined.

According to Clause 1, Section II of Circular 07/2005/TT-BNV, the level of toxic allowance including level 04 is 0.1. 0.2; 0.3; 0.4 compared to the base salary.

Leadership position allowance

Based on the table of management position allowances (elected/appointed) at state agencies. National public service units issued Decree 204/2004/ND-CP.

Regional allowance

According to Joint Circular 11/2005/TTLT-BNV-BLDTBXH-BTC-UBDT, cadres, civil servants and public employees are entitled to regional allowances with coefficient 0.1 including 07 types. 0.2; 0.3; 0.4; 0.5; 0.7 and 1.0.

Mobility allowance

According to Decree 204/2004/ND-CP and Circular 06/2005/TT-BNV, mobility allowance has coefficient of 0.2 is 03. 0.4; 0.6 applied to civil servants, public employees and those who do certain jobs or activities that require frequent change of workplace or residence.

The base salary is used to calculate salaries for civil servants, public employees, calculate living expenses, operating expenses and determine the highest social insurance contribution level.

5. What comes with the increase in the base salary?

A series of social insurance and health insurance benefits will increase from July 1, 2023

The increase in the base salary will lead to a multiplication of social insurance and health insurance benefits for employees, specifically as follows:

Increase the ability to recover and recover after a day of illness to VND 540,000 (currently VND 447,000). Increase the one-time subsidy related to the birth or adoption of a child under 6 months old to VND 3.6 million (currently VND 2.98 million). If you give birth to a child and only the father participates in social insurance, the father will receive a one-time subsidy of VND 3.6 million (currently VND 2.98 million) for each child. Increase the one-day post-natal health recovery subsidy to VND 540,000 (currently VND 447,000).

The level of benefits for occupational accidents and diseases will increase:

If the working capacity is reduced by 5%, the compensation will be 9 million VND (currently 7.45 million VND), if the working capacity is reduced by 1%, the compensation will be 900,000 VND (currently 745 thousand VND).

If the working capacity is reduced by 31%, the monthly allowance is 540,000 VND (currently 447,000 VND), then for each additional 1% reduction, an additional 36,000 VND (currently 29.8 thousand VND) is received.

If the working capacity is reduced by 81% or more, with spinal paralysis, blindness or amputation of both eyes, paralysis of both limbs or mental illness, the monthly service allowance is 1.8 million VND.

Workers who die from work accidents or occupational diseases or die during the first treatment of work accidents or occupational diseases or die from injuries or illnesses that have not been treated during the treatment period, relatives are compensated a lump sum of 64.8 million VND (currently 53.64 million VND) based on the assessment of the level of working capacity reduction.

The level of health recovery benefits after treatment of injuries and illnesses is 540,000 VND (now 447,000 VND).

For employees participating in compulsory social insurance who are entitled to pensions under Articles 54 and 55 of the Social Insurance Law 2014, the minimum monthly pension is 1.8 million VND (now 1.49 million VND), except for the cases specified in Point (i), Clause 1, Article 2 and Clause 3, Article 54 of the Social Insurance Law 2014.

Increase the funeral allowance to 18 million VND (now 14.9 million VND).

The monthly family allowance for each relative is 900,000 VND (now 745,000 VND); If the relative does not have a direct caregiver, the monthly family allowance is 1.26 million VND (now 1.043 million VND).

For employees who have paid 20 years of compulsory social insurance and voluntary social insurance, the conditions and pension levels must be consistent with compulsory social insurance; the lowest monthly pension is 1.8 million VND (currently 1.49 million VND), except for the case specified in Point i, Clause 1, Article 2 of the Social Insurance Law 2014.

Individuals with health insurance cards who receive medical examination and treatment as prescribed and the total cost of medical examination and treatment is less than 270,000 VND (currently less than 223,500 VND) do not have to pay the excess.

The maximum monthly salary for compulsory social insurance is 36 million VND/month (currently 29.8 million VND/month). The increase in the payment amount means that the social security of these future employees, such as pensions and total social security, will also be higher.

6. Frequently asked questions about increasing the base salary

6.1 What are the two base salary levels applied in 2023?

In 2023, there will be two base salary levels, including:

From January 1, 2023 to June 30, 2023: base salary of VND 1.49 million/month;

From July 1, 2023: base salary is VND 1.8 million/month.

6.2 Who will be eligible for an increase in pension from July 1, 2023 when the base salary increases?

When the base salary increases from July 1, 2023 to before January 1, 2016, the average monthly salary used as the basis for social insurance contributions of employees in the State’s compulsory salary system will also be adjusted to increase. In other words, from July 1, 2023, the monthly pension of employees will also increase in this case.

6.3 How much is the maximum increase in health insurance contributions for employees when the base salary increases?

According to Articles 17 and 18 of Decision 595/QD-BHXH 2017, the monthly health insurance contribution of employees is equal to 4.5% of the monthly salary, of which the employer contributes 3%; the employee pays 1.5 percent.

6.4 How much is the increase in eligibility for employees participating in health insurance for 5 consecutive years when the base salary increases?

Starting from July 1, 2023, employees participating in health insurance must have an annual contribution of over VND 10.8 million for 5 consecutive years to have health insurance cover 100% of medical examination and treatment costs, only VND 8.94 million compared to the present.

6.5 Will the monthly survivor allowance increase when the base salary increases?

The monthly family allowance for each relative equal to 50% of the base salary has increased from VND 745,000 to VND 900,000.

If the relative does not have a direct guardian, the monthly family allowance equal to 70% of the base salary will increase from VND 1.043 million to VND 1.26 million.

Above, VIET MY LAW AND ACCOUNTING has provided readers with regulations on increase base salary on July 1, 2023. Hopefully the above information is useful to readers. If you have other questions that need advice and support, please contact us, our staff will answer quickly and in the most detail.