According to Decree 72/2018/ND-CP recently issued by the Government, the new basic salary will be applied for those working in agencies, organisations and non-production units of the Party and the State, State-funded political-social organisations and associations, along with the armed forces. 

The basic salary is used as the basis for calculating salary, allowances and other payments for the groups. It will also be applied for calculating operating and living allowances and other deductions and entitlements. 

Ministries, Government and central agencies were requested to save money, rearrange their organisations, streamline personnel and seek more sources of revenue to pay for the salary rise. 

Under the decree, centrally-run cities and provinces will use the regulated 10% saving from the regular spending, 50% of the extra local budget collection compared to estimates for 2017 and the remaining funding for salary reform of 2017. 

Decree 72/2018/ND-CP will take effect on July 1, replacing Decree 47/2017/ND-CP dated April 24, 2017.

Reform of salary policy for civil servants, public employees and those working in the armed forces was a key item on the agenda of the recent 7th plenary session of the 12th Central Committee of the Communist Party of Vietnam (CPV).

The session, which concluded in Hanoi on May 12, adopted a resolution on the issue.