Update: 10:10 | 15/01/2020
Civil servants, public employees and members of the armed forces will be likely to enjoy a new basic salary from July 1, 2020.
Under a draft decree on new basic salary proposed by the Ministry of Home Affairs, their monthly basic salary will increase from 1.49 million VND (64.5 USD) to 1.6 million VND (69.2 USD).
The 110,000 VND (4.7 USD) increase is equivalent to a rise of 7.38 percent compared to the current level, marking the highest hike in the past eight years.
All public officials and employees working at State agencies from commune-level to the central level, civil servants working at public socio-political organisations, and the armed forces will be eligible for the raise.
The ministry said the current basic salary has reached 42.39 percent of average regional minimum wage in 2019 – which was more than 3.5 million VND (152 USD) per month – and 40.16 percent of this year’s average regional amount – which is more than 3.7 million VND (160 USD) per month.
Increasing the basic wage will make their lives more comfortable, it said.
In November, the National Assembly passed Resolution 86 on State budget for this year, which allowed the adjustment of monthly basic wage for civil servants, public employees and those working in the armed forces.
The draft decree is a necessity to implement the National Assembly’s resolution.
According to the ministry, the increase of basic wage is the highest in the past eight years. The last two increases of minimum basic salary were made in July 1, 2019 and July 1, 2018, rising by 100,000 VND (4.3 USD) each time.
Allowances and other payments for the employees will be based on the new basic salary. The retirement pension will also be adjusted based on the new basic salary.
The Ministry of Home Affairs is collecting public opinions about the draft decree on its website until March 6, 2020.