On 14 May 2023, the Government issued Decree No. 24/2023/ND-CP stipulating the base salary for civil servants, public employees and armed forces

The Decree has some notable points as follows:

• Base salary will be applied to:

–       Calculate salary in payrolls; allowances and other benefits as regulated by law for prescribed subjects;

–       Calculate operation and subsistence fee according to the regulation;

–       Calculation of deductions and other benefits according to the base salary.

• From  1 July 2023, the base salary is 1.8 million VND per month, an increase of 20.8% of compared to the current basic salary of 1.49 million VND per month

Under current regulations, the monthly salary for Social Insurance (“SI”) and Health Insurance (“HI”) contributions is capped by 20 times of the base salary. Therefore, from the effective date of this Decree (1 July 2023), the maximum salary for SI & HI contributions of all employees in enterprises will also increase from VND 29.8 million to VND 36 million .

The current income cap applied to Unemployment Insurance (“UI”) has not been changed, currently at 20 times of the regional minimum salary in accordance with Decree 38/2022/NDCP which took effect from 1 July 2022.