Vietnamese
Recently, the basic wage which is increased by VND 310,000/month has had a great effect on the incomes of many people in this society. So, what is the basic wage? What are the subjects of basic wages?
1. What is the basic wage? What are the subjects of basic wages?
Basic wage is mentioned in many legal documents on public servants and cadres, social insurance regime, social insurance allowance...However, there is no specific definition of what is the basic wage.
Although there is no specific definition of what is the basic wage, the Government issues the Decree prescribing the basic wage. Accordingly, Clause 1, Article 3, Decree No. 38/2019/ND-CP prescribed the basic wage as follows:
a) Calculating wage levels in salary tables and allowance levels and implementing other regimes in accordance with the 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.
Therefore, the basic wage is the minimum wage for wage calculation for the subjects as follows:
- Cadres and civil servants from the central echelon to the district level
- Public employees working in the public service provider.
- Contract employees who are paid as prescribed in Government's Decree No. 204/2004/ND-CP.
- Persons in the payroll of state budget-funded associations specified in the Government’s Decree No. 45/2010/ND-CP.
Officers, professional military personnel, non-commissioned officers, soldiers, defense workers and public employees, contractual employees in the Vietnam People’s Army force;
- Part-timers in communes, villages, and residential quarters.
Besides, the basic wage is the base for the charges of activities, extraction amounts, and other regimes such as social insurance, social insurance, or allowances for people with meritorious services to the revolution...
2. How much does the basic wage?
Clause 2, Article 3, Decree No. 38/2019/ND-CP points out clearly that:
2. From July 01, 2019, the basic wage is VND 1,490,000/month.
Therefore, the basic wage level of VND is 1.49 million/month from July 01, 2019, to this moment. Normally, the basic wage shall be adjusted to increase in order to support and create favorable conditions for cadres, and public servants to feel assured to work.
However, the increase in basic wage is canceled for the effect of Covid-19 in 2020 and 2021. The Government decided to increase the basic wage to VND 1.6 million/month but finally canceled the plan for the great impacts of Covid-19.
When Covid-19 is controlled, on the meeting session of the National Assembly on November 11, 2022, delegates discussed and agreed to increase the basic wage from VND 1.49 million/month to VND1.8 million/month from July 01, 2023 (Increased by VND 310,000/month)
3. What is the difference between basic wage and region-based minimum wage?
In general, the Government considers the basic wage the general minimum wage.
However, the Government has replaced the general minimum wage with the basic wage as prescribed in Clause 2, Article 5, Decree No. 66/2013/ND-CP:
2. The basic wage level specified in this Decree shall be applicable from July 01, 2013, and replaces the general minimum wage specified in documents on wage regimes and other regimes involving the wage of competent agencies.
So what is the difference between these two types of wages? In detail:
Criteria | Basic wage | Region-based minimum wage |
Definition | Is the minimum wage level which is the base for wage calculation of cadres and public servants... | Is the lowest wage paid to the employee who performs the simplest job in normal working conditions in order to ensure the minimum living conditions of the employee and his/her family as suitable to socio-economic development conditions |
Pursuant to: | The Decree No. 38/2019/ND-CP | The Decree No. 38/2022/ND-CP Labor Code |
Subjects | - Cadres and civil servants from the central echelon to the district level - Public employees working in the public service provider. - Contract employees who are paid as prescribed in Government's Decree No. 204/2004/ND-CP. - Persons in the payroll of state budget-funded associations specified in the Government’s Decree No. 45/2010/ND-CP. Officers, professional military personnel, non-commissioned officers, soldiers, defense workers, and public employees, contractual employees in the Vietnam People’s Army force; - Part-timers in communes, villages, and residential quarters. | Non-public employees in non-public enterprises |
Wage levels | VND 1.49 million/month to June 30, 2023 VND 1.8 million/month from July 01, 2023 | Region I: VND 4.68 million/month Region II: VND 4.16 million/month Region III: VND 3.64 million/month Region IV: VND 3.25 million/month |
Date | July 01 (in recent years) | January 01 (in recent years) |
Effects | The basic wage increases, and the wage of cadres, and public servants also increase | The region-based minimum wage increases and the employees with a lower wage than the region-based minimum wage shall have wage increased. Other employees have no effects from the increase in the region-based minimum wage. |
Here is the answer: What is the basic wage?
