Headlines 13/10/2020 16:49 CH

2021’s statutory minimum rate of pay: Need-to-know information for public office-holders and workers

Quý Nguyễn

Below is information about the statutory minimum rate of pay to be valid in 2021 that public officials, civil servants and public employees need to know as the wage policy in 2021 will no longer be the same as due to Covid-19 impacts:

After the reform of the wage policy taking place in 2021, will the statutory minimum rate of pay exist?

- Under the 2018 Resolution No. 27-NQ/TW regarding the wage adjustment policy, statutory minimum rates of pay and pay rate multipliers currently in use will vanish while base pay rates will come into existence by inputting specific pay amounts to new pay charts. 

- On March 4, 2020, in the Central Steering Committee’s meeting session regarding the reform of policies for wages, salaries, social security and preferential treatment for meritorious persons chaired by Prime Minister Nguyen Xuan Phuc, he has fixed the time of commencement of that reform starting on July 1, 2020 (Click here to read more).

- However, due to Covid-19 impacts, the plan for the reform of the wage policy must be delayed and will resume on July 1, 2022 (Click here to see more).

This means that, in 2021, the statutory minimum rate of pay is not going to be invalidated.

How much will the statutory rate of pay be?

Before the outbreak of Covid-19 pandemic, the National Assembly has passed the Resolution No. 86/2019/QH14 regarding the 2020 state budgetary estimate under which the intention saying “the statutory minimum rate of pay will be increased from 1.49 million dong/month to 1.6 million dong/month from July 1, 2020" has been ratified.

According to annual practices, following the National Assembly’s Resolution, the Government will issue the Decree on the statutory minimum rate of pay for public officials, public servants, public employees and members of armed forces in compliance with guidelines stated in the Resolution. This means that, from January 1, 2021 to June 30, 2021, the statutory minimum rate of pay will be 1,600,000 dong/month.

However, due to Covid-19 impacts, by the following documents, the Politburo and the National Assembly have decided not to raise the statutory minimum rate of pay from July 1, 2020 whilst waiting for new notification:

- Conclusion Statement No. 77-KL/TW dated June 5, 2020;

- Resolution No. 122/2020/QH14 dated June 19, 2020.

Hence, if there is none of new notifications, the statutory minimum rate of pay from January 1, 2021 will remain unchanged, i.e. 1,490,000 dong/month. 

THƯ VIỆN PHÁP LUẬT will keep our dearest Customers promptly informed of the Government’s new notices of the statutory minimum rate of pay.

>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE

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