Decree No. 47/2016/ND-CP dated May 26th, 2016, on the statutory pay rate for public officials, public employees and armed forces’ personnel

DECREE

ON THE STATUTORY PAY RATE FOR PUBLIC OFFICIALS, PUBLIC EMPLOYEES AND ARMED FORCES’ PERSONNEL

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

Pursuant to the Labor Law dated June 18, 2012;

Pursuant to the National Assembly’s Decree No. 99/2015/QH13 dated November 11, 2015 on state budget estimates for the year of 2016;

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

The government issues the Decree on the statutory pay rate for public officials, public employees and armed forces’ personnel.

Article 1. Scope

This Decree regulates the statutory pay rate for public officials, public employees, employees on payroll and workers (hereinafter referred to as employees on payroll) working in bodies, agencies and civil service providers of the Vietnam Communist Party or the Government or in state-funded political or social organizations and associations that operate in the central government, in provinces, centrally-affiliated cities, districts, townships, provincial cities (at district level), in communes, wards, towns (at communal level), in  special administrative - economic areas and in armed forces.

Article 2. Regulated entities

Employees on payroll as per Article 1 of this Decree include:

1. Public officials working in authorities at central echelon to district level according to Section 1 and Section 2, Article 4 of the 2008’s Law on public officials and public employees.

2. Public officials working in authorities at communal level according to Section 3, Article 4 of the 2008’s Law on public officials and public employees.

3. Public employees working in civil service providers as per the 2010's Law on Public employee.0}

4. Salary-graded contract workers defined in the Government’s Decree No. 204/2004/ND-CP dated December 14, 2004 on pay policy for public officials, public employees and armed forces’ personnel, as follows:

a) Contract workers in agencies of the Vietnam Communist Party, the Government or political - social organizations as defined in the Government’s Decree No. 68/2000/ND-CP dated November 17, 2000 on contracts of employment for certain positions in the government's administrative agencies and in public service providers;

b) Contract workers in the employment quota that competent authorities allocate to public service providers upon decisions by the Prime Minister.

5. Workers on regular payroll of state-funded associations as defined in the Government's Decree No. 45/2010/ND-CP dated April 21, 2010 on organization, operation and management of associations.

6. Commissioned officers, professional soldiers, non-commissioned officers, conscript soldiers, national defense employees, contract workers in the People's army of Vietnam.

7. Commissioned officers, non-commission officers on payroll, non-commissioned officers, conscript officers, police officers and contract workers in the People’s police force.

8. Employees in cryptography agencies.

9. Non-specialized workers in communes, hamlets or neighborhoods.

Article 3. Statutory pay rate

1. Statutory pay rate is the basis for:

a) Determining the levels of salary and allowances and other benefits as per legal regulations with regard to individuals as defined in Article 2 of this Decree;

b) Determining the level of costs for operation and activities as per the laws;

c) Determining contributions and benefits concerning the statutory pay rate.

2. From May 01, 2016, the statutory pay rate is VND 1,210,000 per month.

3. The statutory pay rate is subject to the capacity of the state budget, consumer price index and national economic growth rate.

Article 4. Finances

1. Ministries, ministerial-level agencies, governmental agencies and other central agencies shall arrange unused funds from the 2015’s salary reform within the allotted estimates of state budget and use earnings from any other sources to balance the finances for the 2016's adjustment of the statutory pay rate.

2. Provincial authorities:

a) Use the saving funded by 10% of regular spending (excluding salaries and equivalents) as per 2016's estimates decided by competent authorities for administrative agencies and public service providers;

b) Use the saving funded by extra 10% of regular spending (excluding salaries and equivalents) apart from the saving as stated in Point a of this Section;

c) Use part(s) of earnings of administrative agencies and public service providers;

d) Use 50% of receipts that increase the local budget, which exclude land use fees. Such receipts include 50% of receipts acquired and 50% of 2016's estimated receivables in comparison with the 2015’s receipt estimates that was decided by the Prime Minister);

dd) Employ the unused fund from the 2015’s salary reform;

e) Financially-challenged local authorities having a low budget shall receive financial aids from the central government’s budget if their finances for the 2016's salary reform are insufficient despite their implementation of Point a, b, c, d and dd of this Section.

Article 5. Effect

1. This Decree takes effect as of July 15, 2016.

The statutory pay rate as defined in this Decree comes into force as of May 01, 2016.

2. Decree No. 66/2013/ND-CP dated June 27, 2013 on statutory pay rate for public officials, public employees and armed forces’ personnel and Government’s Decree No. 17/2015/ND-CP dated February 14, 2015 on additional pay for public officials, public employees and armed forces’ personnel on payroll with a salary rate of 2.34 or lower shall lose effect as of May 01, 2016.

For employed individuals with a salary rate of 2.34 or lower and additional pay as per the Government's Decree No. 17/2015/ND-CP dated February 14, 2015, if their total salary based on grade, rank, position and rank, plus relevant allowances (if any) subject to the statutory pay rate of VND 1,210,000 per month in May 2016 are lower than the total amount of such salary, relevant allowances (if any) and additional pay, as defined by Decree No. 17/2015/ND-CP, under the statutory pay rate of VND 1,150,000 per month in April 2016, they shall receive amount(s) that equalize the earning with their receipt in April 2016. Such amount(s) shall not constitute to the calculation of contributions to social insurance, health insurance and unemployment insurance or allowances.

Article 6. Responsibility for guidance and implementation

1. Minister of Home affairs shall provide guidelines for implementation of this Decree with regard to employees on payroll in bodies, organizations and agencies of the Vietnam Communist party and the Government, and political or social organizations and associations.

2. Minister of National Defense and Minister of Public Security shall provide guidelines for implementation of this Decree with regard to employees under their management.

3. Minister of Finance:

a) Provide guidelines for determination of demands, sources and payment methods for adoption of the statutory pay rate as defined in this Decree;

b) Verify demands and sources of finances for adoption of the statutory pay rate as per this Decree in provinces and centrally affiliated cities, provide financial supports to financially-challenged local authorities that have implemented regulations on funding the salary reform, and summarize and report results of activities to the Prime Minister.

4. Ministers, Heads of ministerial-level agencies, Heads of governmental agencies, Chairpersons of provincial People's Committees shall be responsible for implementing this Decree./.