Decree No. 72/2018/ND-CP dated May 15, 2018 of the Government on prescribing the base salary for cadres, civil servants, public employees and armed forces

DECREE

Prescribing the base salary for cadres, civil servants, public employees and armed forces^[1]

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

Pursuant to the June 18, 2012 Labor Code;

Pursuant to the National Assembly’s Resolution No. 49/2017/QH14 of November 13, 2017, on the 2018 state budget estimate;

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

The Government promulgates the Decree prescribing the base salary for cadres, civil servants, public employees and armed forces.

Article 1.Scope of regulation

This Decree prescribes the base salary for cadres, civil servant, public employees, persons receiving salaries and allowances, and employees (below collectively referred to as persons receiving salaries and allowances) working in agencies, organizations and non-business units of the Party, State, socio-political organizations and state budget-funded associations that operate at the central level, in provinces and centrally run cities, in rural districts, urban districts, towns, provincial cities and municipal cities (district level), in communes, wards and townships (commune level), and in special administrative-economic units and armed forces.

Article 2.Subjects of application

Persons receiving salaries and allowances specified in Article 1 of this Decree, including:

1. Cadres and civil servants from the central to district level specified in Clauses 1 and 2, Article 4 of the 2008 Law on Cadres and Civil Servants;

2. Commune-level cadres and civil servants specified in Clause 3, Article 4 of the 2008 Law on Cadres and Civil Servants;

3. Public employees in public non-business units specified in the 2010 Law on Public Employees;

4. Persons working under labor contracts and salaried under the Government’s Decree No. 204/2004/ND-CP of December 14, 2004, on salary regime for cadres, civil servants, public employees and armed forces, including:

a/ Persons working under labor contracts in agencies and units of the Party, State and socio-political organizations specified in the Government’s Decree No. 68/2000/ND-CP of November 17, 2000, on contractual regime applicable to a number of jobs in state administrative agencies and non-business units;

b/ Persons working under labor contracts among the employees of public non-business units approved by competent authorities under regulations of the Government or Prime Minister;

5. Persons in the payroll of state budget-funded associations specified in the Government’s Decree No. 45/2010/ND-CP of April 21, 2010, on the organization, operation and management of associations;

6. Officers, professional military personnel, non-commissioned officers, soldiers, defense workers and public employees, contractual employees in the Vietnam People’s Army force;

7. Officers, non-commissioned officers receiving salaries, non-commissioned officers, service men, public-security workers and contractual employees in the People’s Public Security force;

8. Persons working in cipher organizations;

9. Part-timers in communes, villages and residential quarters.

Article 3.Base salary

1. The base salary will serve as a basis for:

a/ Calculating salary levels in salary tables and allowance levels and implementing other regimes in accordance with law applicable to the subjects defined in Article 2 of this Decree;

b/ Calculating levels of operation cost and cost-of-living allowance in accordance with law;

c/ Calculating deductions and benefits that are based on the base salary.

2. From July 1, 2018, the base salary is VND 1,390,000 per month.

3. The Government shall submit to the National Assembly for adjusting the base salary suitable to the capacity of the state budget, consumer price index and national economic growth rate.

Article 4.Funds

1. Ministries, ministerial-level agencies, government-attached agencies, and other central agencies shall, based on their allocated state budget estimates, further implement policies on resources for salary reform and, at the same time, reduce expenditures, reorganize their apparatuses, downsize their payrolls and intensify financial autonomy in public non-business units, striving to increase law-prescribed revenues and use the 2017 year’s unused funds for salary reform (if any) to balance the funding to cover the expenditures increased as a result of the adjustment of the base salary in 2018.

2. Provinces and centrally run cities shall:

a/ Use the 10-percent  saved regular expenditure (excluding salaries, salary-based allowances, expenditures of salary nature and other expenditures for human resources under regulations) of the 2018 year’s state budget estimate higher than the state budget estimate allocated in 2017;

b/ Use the 50-percent increased revenues of local budgets in comparison with the 2017 budget estimate allocated by the Prime Minister (excluding revenues from land use levy and construction lottery);

c/ Use the 2017 year’s unused funds for the salary reform (if any);

d/ Use the remaining fund (if any) after adjustment of the base salary of VND 1,300,000 per month, including the following sources:

- Use the 10-percent saved regular expenditure (excluding salaries, salary-based allowances, expenditures of salary nature and other expenditures for human resources under regulations) of the state budget estimate allocated in 2017, while reducing expenditures, reorganizing apparatuses, downsizing payrolls and intensifying financial autonomy in public non-business units.

- Use part of retained revenues of administrative agencies and non-business units under regulations.

- Use the 50-percent increased revenues of local budgets of the 2018 budget estimate in comparison with the 2017 budget estimate allocated by the Prime Minister (excluding revenues from land use levy and construction lottery).

dd/ After applying the measures specified at Points a, b, c, and d of this Clause, if their funds for salary reform in 2018 remain insufficient, financially-challenged localities may receive central  budget funds for implementation.

Article 5.Effect

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

2. This Decree replaces the Government’s Decree No. 47/2017/ND-CP of April 24, 2017, on the base salary for cadres, civil servants, public employees and armed forces.

Article 6.Responsibility for guidance and implementation

1. The Minister of Home Affairs shall guide the implementation of this Decree applicable to persons receiving salaries and allowances of agencies, organizations and units of the Party, State, socio-political organizations and associations.

2. The Minister of National Defense and Minister of Public Security shall guide the implementation of this Decree applicable to subjects under their management.

3. The Minister of Finance shall:

a/ Guide the determination of demands, funding sources and methods of payment for application of the base salary specified  this Decree;

b/ Verify demands and funding sources for application of the base salary specified in this Decree in provinces and centrally run cities, and additionally provide funds to localities that meet with financial difficulties even after having implemented regulations on resources for salary reform, and summarize and report implementation results to the Prime Minister.

4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC