Regulations on base salary under Vietnamese law

by QuynhHuong

“If you work, you will eat” – a saying that is not difficult to understand how important it is to each person to receive a salary. However, the issue surrounding the two words “salary” also has many terms around. In fact, one of those terms is base salary. So, what are the regulations on base salary under Vietnamese law? Let’s find out with LSX!

  • Labor Code 2019
  • Decree 38/2019/ND-CP
  • Resolution 70/2018/QH14

What is base salary?

Accordingly, base salary is the salary level used as a basis for calculating the salary level in the salary tables, allowance levels, and implementation of different regimes following the law (base salary also known as the lowest salary). Hence the provisions of Article 3 of Decree 38/2019/ND-CP stipulate the base salary for civil servants, public employees, and the armed forces; the base salary is the basis for:

  • Calculating the salary in the salary tables and allowances, and implement other regimes following the law for each subject.
  • Calculate deductions and benefits following the base salary.

Subjects applying base salary

Following Article 2 of Decree 38/2019/ND-CP, regulations on the base salary for cadres, civil servants, and armed forces, with regulations on subjects to which the base salary applies, include:

  • Commune-level officials and civil servants.
  • Officials.
  • Persons working under the wage-arranged labor contract regime.
  • People working in the quota of payroll in associations are supported by the state budget for operating expenses.
  • Officers, professional soldiers, non-commissioned officers, soldiers, and workers; defense officer and contract worker of the Vietnam People’s Army.
  • Paid officers and non-commissioned officers, non-commissioned officers and soldiers on duty; public security workers and contract workers under the People’s Public Security.
  • People working in cipher organizations
  • People who work part-time at commune, village, and neighborhood levels.

Level of influence and change cycle of base salary

Hence Clause 7, Article 4 of Resolution 70/2018/QH14 on State budget estimates in 2019:

Adjust the base salary from 1,390,000 million dong/month to 1.49 million dong/month, adjust pension, social insurance allowance, monthly allowance according to regulations (subject to house budget) guaranteed country) and preferential allowances for people with meritorious services increased by the increase in base salary; The implementation time is from July 1, 2019.

Thus, according to Resolution 70/2018/QH14 above, the National Assembly assigned the government to adjust the salary level. So from July 1, 2019, the base salary will be adjusted from 1,390,000 million VND/month to 1,490,000 million VND/month. Simultaneously, pension adjustment, monthly allowances (subjects guaranteed by the state budget), and preferential allowances for people with meritorious services increased by the increase in base salary.

Thank you for paying attention to our article on “Regulations on base salary under Vietnamese law”. Hope that this article will help you solve your problem. In case you have any questions, please feel free to contact Lawyer X for quick and best legal services: +84846175333.

The concept of “foreign worker” under international law?

International legal documents do not use the term “foreign workers” but only use the equivalent legal term “migrant workers”. According to the International Labor Organization (ILO), a migrant worker is a concept that refers to a person who migrates from one country to another to work for his or her own benefit.

What is a work permit?

A work permit is a document that allows a foreigner to work legally in Vietnam. The permit clearly states the entrusting company, position, and work for foreigners, so it is important for the legal protection of foreigners when working.

What groups of foreigners are exempt from work permits?

Group 1. Working group at Vietnamese enterprises
Group 2. Working group at agencies and organizations in Vietnam
Group 3. Research and training group

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