Buzz
Abbreviation List
- Employees: Laborers
- Enterprises: Companies
- LD Contracts: Labor contracts
1. Which subjects does the salary apply to?.
2. Base salary level.
3. How is the base salary level applied?.
4. Are base salary and regional minimum wage the same?
Information about the base salary level
1. Which subjects does the salary apply to?
According to Decree 38/2019/NĐ-CP, the base salary level is applied to the following subjects:
- Officials and public servants at all levels, from commune to central level.
- Civil servants in public sector units.
- Employees under labor contracts with fixed wages, such as contract 68.
- Individuals working within the staff quota in organizations supported by state budget for operational expenses.
=> It can be seen that those who are subject to the base salary are officials, public servants, civil servants, and individuals working in state agencies and armed forces.
Individuals working under LD Contracts in enterprises do not apply the base salary level. They will instead apply the regional minimum wage.
2. Base Salary Level
2.1 Base Salary Levels Over the Years
Over the years, the base salary level has been adjusted upwards, specifically summarized in the table below:
2.2 Base Salary Level in 2022
- According to Resolution 86/2019/QH14 in 2020, the base salary level was adjusted from 1,490,000 VND/month to 1,600,000 VND/month starting from July 1, 2020.
- However, according to Resolution 128/2020/QH14 dated November 12, 2020, the base salary level was not adjusted upwards due to the focus on resources to combat covid-19 and address natural disaster consequences.
=> Therefore, the current base salary level in 2022 is 1,490,000 VND/month
3. How is the base salary level applied?
According to current regulations, the base salary level is used as the basis for calculating:
- Determining the salary levels in salary tables, allowances, and other regimes for subjects subject to the base salary.
For example:
Salary for officials, public servants, and civil servants in 2022 = Salary coefficient x Base salary level.
+ Grade A3 officials, subgroup A3.1, rank 1 with a salary coefficient of 6.2 then the salary = 6.2 x 1,490,000 = 9,238,000 VND;
+ Grade A3 officials, subgroup A3.1, rank 2 with a salary coefficient of 6.56 then the salary = 6.2 x 1,490,000 = 9,774,400 VND.
- Calculate activity fees, living fees as regulated by law.
For instance:
According to Decree 34/2019/NĐ-CP, allowances and expenses for non-professional activities at commune level are determined as follows:
+ Type 1: Lump sum allowance fund = 16 times the base salary level.
+ Type 2: Lump sum allowance fund = 13.7 times the base salary level.
+ Type 3: Lump sum allowance fund = 11.4 times the base salary level.
- Calculate deductions and regimes enjoyed based on the base salary level.
For example:
According to the provisions of the Social Insurance Law 2014, some regimes for employees are calculated based on the base salary level such as:
+ Lump sum maternity allowance = 2 times x Base salary level at the month of childbirth = 2 x 1,490,000 = 2,980,000 VND.
+ Postpartum recovery allowance for female workers = Number of days off for postpartum recovery x 30% x Base salary level.
- Read more: 2022 dependent deduction amount
4. Are base salary and regional minimum wage the same?
Many people still confuse base salary and regional minimum wage, however, these are two completely different salary levels, applied to different subjects. Specifically:
* Regarding the subjects:
- Base salary applies to officials, public servants, civil servants, individuals working in state agencies, armed forces.
- Regional minimum wage applies to the following employees, enterprises:
+ Employees working for enterprises under labor contracts (these are individuals not belonging to state agencies or organizations).
+ Enterprises, organizations established and operating according to the Enterprise Law.
+ Cooperatives or other organizations hiring labor under labor contracts.
* Regarding the application:
- Base salary is the basis for calculating the following items:
+ Calculating salaries in salary tables, allowances, and other regimes for subjects subject to the base salary.
+ Calculating activity fees, living expenses as regulated.
+ Calculating deductions and regimes enjoyed based on the base salary.
- The regional minimum wage is the basis for calculating the following items:
+ Agreement and payment of minimum wage between employers and employees.
+ Basis for calculating mandatory social insurance contributions.
+ Basis for calculating severance pay for employees.
+ Basis for calculating wages when transferring employees to other jobs under labor contracts.
Here is the latest update on the base salary information we provide. Readers can follow and distinguish between base salary and regional minimum wage to apply correctly in their cases.
