Decree No. 38/2019/ND-CP on the Increase of Basic Salary of State's Cadre, Civil Servants and Public Employees

Decree 38/2019/ND-CP on the increase of basic salary of state's cadre, civil servants and public was issued by the Vietnamese Government on the 9th of May 2019 and will be effective from the 1st of July 2019. It was issued in order to replace the previous Decree 72/2018/ND-CP.

From the 1st of July 2019 the basic applicable salary for State’s cadres, civil servants, public employees shall be increased from VND 1,390,000/month to VND 1,490,000/month.

According to Article 3 of this Decree, the basic pay rate shall be used as the basis for:

a) Calculating salary in payrolls, allowance levels and performing other regimes as prescribed by law for cadres, civil servants, public employees;

b) Calculating operational charges, living expenses as prescribed by law;

c) Calculating contributions and benefits under the basic pay rate.

In particular, the maximum social insurance premiums (20 times higher than the basic pay rate) shall be increased from VND 27,800,000 to VND 29,800,000 per month. Maternity allowances (2 times higher than the basic pay rate) shall be increased from VND 2,780,000 to VND 2,980,000.

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