Prepare 59,000 billion VND to increase the base salary from July 1 2023

DNHN - The Deputy Minister of Finance, Nguyen Duc Chi, stated that the Ministry of Finance has proposed to the Government that it propose to the National Assembly that adequate resources be allocated to serve the salary increase beginning on July 1, 2023.

At the regular Government press conference on May 5 in the afternoon, Deputy Minister of Finance Nguyen Duc Chi provided information about the funding source for the increase in the base salary to 1.8 million VND beginning on July 1. He stated that the Ministry of Finance proposed to the Government that the National Assembly allocate sufficient resources to support the salary increase.

"I had information that I required VND 60,000 billion for the final six months of 2023 half a year ago. Currently, the exact figure exceeds 59,000 billion VND. We have included this amount in the budget estimate. In 2023, the state budget is 12 trillion VND. The remaining VND 47,000 billion will come from revenue increases, with the local budget contributing VND 27,000 billion and the central budget contributing VND 20,000 billion. Minister of Informational Services.

In addition, the head of the Ministry of Finance confirmed that the government has allocated sufficient funds to serve the policy on salary increase and salary reform during the final six months of 2023.

During the meeting, Deputy Minister of Home Affairs Nguyen Duy Thang stated that based on the opinions of ministries, local branches, and people gathered on the ministry's portal, the Ministry of Interior will release a report in April. The Department of the Interior has tasked the Ministry of Justice with evaluating the draught Government Decree on adjusting the base salary.

Consequently, the Ministry of Internal Affairs will promptly absorb and explain the opinions and submit to the Government in May 2023 the Decree regulating the base salary for cadres, civil servants, and military personnel. To ensure implementation beginning on 1 July 2023, raise the base salary from 1.49 million to 1.8 million VND.

The draught Government Decree specifies the following sources of funding for the implementation of the base salary in ministries, ministerial-level agencies, government-attached agencies, and other central agencies: Utilising resources to reduce expenditures by 10%. Consistently, the competent authority increases the 2023 estimate compared to the 2022 estimate. After deducting directly related expenses, toll-collecting administrative agencies and public non-business units must deduct a portion of the toll collected by the prescribed regime to fund salary reform. Funds for implementing salary reform of public employees and employees in public non-business units shall be covered by the units themselves, by regulations. Utilise remaining resources to implement wage reform in 2022, if any remain.

As for the provinces and cities governed centrally: Using 10% of estimated recurring expenditures for 2023, which is higher than the estimate assigned by competent authorities for 2022; Utilising 70% of the increase in local budget revenues compared to the estimate provided by the Prime Minister for 2022; Utilise the unused source from salary reform in 2022; utilize at least 40 percent of the remaining revenue under the 2023 regime. Particularly for the revenue generated by medical facilities from the provision of medical examination, treatment, preventive medicine, and other medical services. minimum of 35% public use. The deduction of retained earnings is governed by the Ministry of Finance's directives regarding the needs and sources of wage reform in 2023.

Also per the draught Decree, the central budget will supplement the shortfall in funding caused by the 2023 base salary adjustment for ministries, ministerial-level agencies, government-attached agencies, and other agencies. As a result of implementing the aforementioned provisions, provinces and cities governed by the central government will be established.

PV