1. Region-specific minimum pay rates in effect from January 1, 2020
From January 1, 2020, the Decree No. 90/2019/ND-CP regulating region-specific minimum pay rates applied to corporate employees under employment contracts as follows:
- The rate of VND 4,420,000/month, applied to enterprises operating within the Region I.
- The rate of VND 3,920,000/month, applied to enterprises operating within the Region II.
- The rate of VND 3,430,000/month, applied to enterprises operating within the Region III.
- The rate of VND 3,070,000/month, applied to enterprises operating within the Region IV.
Notes: Minimum pay rates for employees holding the posts subject to vocational training and education requirements must be at least 7% greater than the region-specific minimum pay rates.
Mr. Bui Tuong Vu, Legal Advocate and Director of THƯ VIỆN PHÁP LUẬT Co., emphasized: “Region-specific minimum pay rates increased by 150,000 – 240,000 dong/month will help the average employee income hike up, making sure that they can pay basic living expenses according to the schedule specified in the Resolution No. 27-NQ/TW dated May 21, 2018 of the Party Central Committee on reform of wage and salary policies. However, this also affects costs that enterprises have to pay. Nevertheless, since many enterprises pay more than the region-specific minimum pay rates of 2019, the aforesaid increases in minimum pay rates of 2020 will mainly affect Social Insurance contribution costs”.
2. List of local subdivisions changing regions of minimum pay rates from January 1, 2020
In comparison to regions of minimum pay rates in 2019, local subdivisions mentioned below will change their regions of minimum pay rates from 2020:
- Region III moved up to Region II: Dong Phu district (Binh Phuoc province); Ben Tre city, Chau Thanh district (Ben Tre province).
- Region IV moved up to Region III: Dong Son district, Quang Xuong district (Thanh Hoa province); Nghi Loc district, Hung Nguyen district, Cua Lo town (Nghe An province); Ba Tri district, Binh Dai district, Mo Cay Nam district (Ben Tre province).
3. Methods for determination of pay grades in the banking sector in effect from January 1, 2020
Circular No. 12/2019/TT-NHNN regulating methods for determination of pay grades specific to ranks of public servants working in the banking sector as follows:
- Those holding senior controller rank are entitled to class-A3 and group-1 (A3.1) public servant pay grades;
- Those holding principal controller rank are entitled to class-A2 and group-1 (A2.1) public servant pay grades;
- Those holding controller rank are entitled to class-A1 public servant pay grades;
- Those holding warehouse keeper rank are entitled to class-B public servant pay grades.
(If public servants are appointed to ranks before the effective date of this Circular, they will continue to be entitled to pay grades corresponding to such ranks).
- Those holding treasurer or cashier rank are entitled to class-B public servant pay grades;
Circular No. 12/2019/TT-NHNN is entering into force on January 1, 2020.
Notes: Pay coefficients to be adopted are those mentioned in Table 2 – Profession-based Pay Table for public officers and servants annexed to the Decree No. 204/2004/ND-CP dated December 14, 2004.
4. Methods for determination of pay rates applied to those holding public servant ranks, including accountants, tax, customs or reserves operation officers
Circular No. 77/2019/TT-BTC regulating occupational titles of those holding public servant ranks, including those working in the accounting, tax, customs and reserves sectors, as follows:
(1) Titles and codes of public servants holding ranks in the accounting sector:
- Senior accountant (Code: 06.029)
- Principal accountant (Code: 06.030)
- Accountant (Code: 06.031)
- Intermediate-level accountant (Code: 06.032)
(2) Titles and codes of public servants holding ranks in the taxation sector:
- Senior tax inspector (Code: 06.036)
- Principal tax inspector (Code: 06.037)
- Tax inspector (Code: 06.038)
- Intermediate-level tax inspector (Code: 06.039)
- Tax staff (Code: 06.040)
(3) Titles and codes of public servants holding ranks in the customs sector, including:
- Senior customs inspector (Code: 08.049)
- Principal customs inspector (Code: 08.050)
- Customs inspector (Code: 08.051)
- Intermediate-level customs inspector (Code: 08.052)
- Customs staff (Code: 08.053)
(4) Titles and codes of public servants holding ranks in the national reserves sector, including:
- Principal storage technician (Code: 19.220)
- Storage technician (Code: 19.221)
- Intermediate-level storage technician (Code: 19.222)
- Storage warehouse keeper (Code: 19.223)
- Storage warehouse security guard (Code: 19.224)
Methods for determination of pay rates are as follows:
- Senior tax inspector or senior customs inspector rank: class-A3 and group A3.1. public servant pay coefficient.
- Senior accountant rank: Class-A3 and group-A3.2. public servant pay coefficient.
- Principal tax inspector, principal customs inspector or storage technician rank: class-A2 and group A2.1. public servant pay coefficient;
- Principal accountant rank: Class-A2 and group-A2.2. public servant pay coefficient.
- Accountant, tax inspector, customs inspector or storage technician rank: Class-A1 public servant pay coefficient.
- Intermediate-level accountant, tax inspector, customs inspector or storage technician, or storage warehouse keeper (newly updated) rank: Class-A0 public servant pay coefficient.
- Customs staff or tax staff (newly updated) rank: class-B public servant pay coefficient.
- Storage warehouse security guard rank: Class-C and group-C1 public servant pay coefficient.
For more details, please read Article 25 in the Circular No. 77/2019/TT-BTC (entering into force on January 1, 2020); please noting that pay coefficients to be used are those mentioned in Table 2 – Profession-based Pay Table for public officers and servants annexed to the Decree No. 204/2004/ND-CP dated December 14, 2004.
>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE
1.333