Vietnam: Base salary agreed to be raised to VND1.8 million per month
The Government proposes that the NA will not implement salary reform under Resolution No.27-NQ/TW in 2023, but from July 1, 2023, the base salary for officials, civil servants, and public officials will be raised to the level of VND1.8 million/month.
On the afternoon of October 20, at the NA Building, the NA listened to the Government’s report on the assessment of the implementation of the State budget in 2022, the State budget estimate, the plan to allocate the central budget in 2023, and the financial plan for the 2023-2025 period.
Minister of Finance Ho Duc Phoc said the estimated budget revenue for the year is more than VND1.6 quadrillion, exceeding VND202.4 trillion, up 14.3 percent compared to the estimate.
State budget expenditure for the year is VND2 quadrillion, equaling 114.1 percent of the estimate of VND1.7 quadrillion. The state budget deficit is estimated at VND352 trillion, equaling 3.75 percent of GDP.
In 2023, budget revenue is estimated at more than VND1.6 quadrillion, and budget expenditure is more than VND2 quadrillion, an increase of about VND291.6 trillion compared to the estimate in 2022, including VND726.7 trillion for investment and development, and VND106.8 trillion for interest payments, aid, and national reserves.
Besides the regular expenditure of VND1.1 quadrillion, accounting for 56.5 percent, to ensure the operation of the state apparatus and the implementation of national target programs and political, defense, security, and foreign affairs tasks, the estimated expenditure on salary and pension reform and adjustment of allowances, benefits, and social security policies associated with the base salary is VND12.5 trillion; the expenditure on supplementing financial reserve and budget reserve is VND58 trillion.
The Government proposes that the NA will not implement salary reform under Resolution No.27-NQ/TW in 2023, but from July 1, 2023, the base salary for officials, civil servants, and public officials will be raised to the level of VND1.8 million per month (about 20.8 percent); the spending on pensions and social insurance benefits guaranteed by the budget will be increased by about 12.5 percent.
Additional support will be provided for those who retire before 1995 with low benefits; the spending on preferential allowances for people with meritorious services and social welfare policies associated with the base salary will be increased by about 20.8 percent. From January 1, 2023, occupational incentive allowances for preventive medicine and grassroots health workers will be raised.
To gradually narrow the wage gap between officials and civil servants of these units and other State agencies and make it convenient to implement the salary regime according to Resolution No.27-NQ/TW, in 2023, salaries will be kept the same as in 2022 for agencies and units that are implementing specific financial and income mechanisms.
In the verification report, Mr. Nguyen Phu Cuong, Chairman of the Finance and Budget Committee, said that to carefully prepare, reduce pressure to increase budget spending, and focus resources on supporting socio-economic recovery, the Finance and Budget Committee agreed to delay the salary reform for officials, civil servants, public officials, and armed forces as in Resolution No.27/2018.
Regarding the 2023 budget estimate, the committee agreed to increase the base salary with the plan submitted by the Government while maintaining the current salary in 2022 for agencies and units implementing a specific financial mechanism.
Minister of Finance Ho Duc Phoc also reported that in case global prices continue to develop complicatedly and hike, affecting inflation, the macro-economy, and people’s lives, the ministry would propose the NA to reduce as much as 50 percent of excise tax on gasoline and 50 percent of value-added tax on gasoline of all kinds, jet fuel, diesel oil, kerosene, fuel oil, lubricant, and grease. The Government proposes the NA assign the NA Standing Committee to decide on a specific reduction.
The Finance and Budget Committee said that the Government’s report has not analyzed and assessed the impact for the NA to consider tax reduction.
On the other hand, the Government proposes the NA reduce these two types of taxes as one of the measures to control the State budget estimate in 2023, which means it is a backup measure in case global gasoline prices continue to increase highly and develop complicatedly.
According to the Chairman of the Finance and Budget Committee, this contingency measure is not necessary to apply urgent measures, authorizing the NA Standing Committee to decide. In case it is essential to take corrective measures for gasoline, it is still possible to consider adjusting the environmental protection tax under Resolution No.18, which will expire at the end of 2022, and then consider the adjustment of excise and value-added taxes.