Salary coefficient table according to Decree 204: Latest information 2025

Salary coefficient is one of the issues of top concern for employees. It has a direct impact on the rights and legitimate interests of each person. So what is the salary coefficient? What is the salary coefficient table according to Decree 204? Let's find out with Faro Vietnam through the article!

1. What is the salary coefficient?

Currently, the salary coefficient has a huge impact and influence on the Wage and hour compliance issue of civil servants and public employees in the state. This coefficient will be adjusted from time to time to suit the economic conditions of the country and State and federal wage laws. So do you clearly understand the concept of salary coefficient? Understand what the salary coefficient is?

Salary coefficient is an index showing the difference in salary levels of positions and job levels. This difference will be based on the qualifications and degrees of each person. This coefficient will only be used in calculating salaries for state officials or as a basis for calculating basic salaries, allowances, and related regimes for employees working in enterprises. Depending on each subject, whether it is a state official, a public security officer, an armed force officer, an officer at an administrative unit, etc., the salary coefficient will be different for different levels. This coefficient will be higher when the rank is increased or the group of subjects has a high level, holding an important position in the agency or unit.
 

Exempt vs. non-exempt employee classification

2. How to calculate basic salary according to the latest coefficient

As mentioned above, the salary coefficient is also considered the basis for organizations and enterprises to calculate basic salary. So how is this salary calculation performed?

2.1 What is basic salary?

Before learning about how to calculate basic salary according to the coefficient currently applied, we need to clearly understand what basic salary is for Wage theft prevention. Basic salary is also known as the salary stated in the labor contract. This salary will be agreed upon by the employee and the enterprise and used as the basis for paying insurance premiums. Basic salary will not include allowances, bonuses or other benefits.

2.2 Formula for calculating basic Minimum wage laws by coefficient

Regarding the method of calculating basic salary by coefficient based on Minimum wage laws, Decree No. 49/2013 of the Government will apply uniformly according to the general provisions of the salary scale - salary table. Specifically, the simple calculation formula is as follows:

Current salary = basic salary x current salary coefficient Formula for calculating basic salary by coefficient + Overtime pay regulations

In which: The basic salary can be adjusted every year based on current legal documents and the socio-economic situation.

The current basic salary remains at VND 1,490,000/month and will increase to VND 1,800,000/month from July 1, 2023. The current salary coefficient will be regulated by law for each level group. The current salary coefficient will be determined according to the arrangement of civil servants and public employees in Decree 204/2004/ND-CP.

3. Salary Increase Time for Senior Specialists

According to Article 7, Chapter III of Decree 204/ND-CP in 2014, the issue of salary increase time for the position of senior specialist will be implemented depending on each specific case:

3.1 Firstly, based on Exempt vs. non-exempt employee classification and time holding the salary grade in the grade: If the cadres and civil servants complete the assigned tasks, have not been ranked at the last salary grade in the grade, after 3 years of holding the salary grade, they will be considered for a 1-grade increase. If the cadres and civil servants do not complete their tasks or commit violations such as being disciplined, reprimanded, warned, demoted, etc., then for each year of failure, the salary increase time will be extended from 6 to 12 months depending on the level of violation.
 

State and federal wage laws in Vietnam 2025

3.2 Second, salary increase before the deadline in the following cases:

Civil servants who have achieved excellent results in the performance of their duties, if they have not been ranked at the final Payroll record-keeping requirements level in the grade, will be considered for a 1-level increase up to 12 months in advance. And each year, no more than 10% of civil servants will be promoted before the deadline. Civil servants who have reached the retirement age according to regulations, completed their duties and have not been ranked at the final salary level in the grade will also be promoted 1-level 12 months in advance.

4. Some frequently asked questions about salary coefficients

There are many questions about salaries raised by employees, such as: Compensable time policies, or Break and meal period compliance. Below is a summary of some of the most common questions with detailed answers. If you are also interested in these issues, do not ignore the following content.

• 4.1 What is the salary coefficient 2.34? This is the coefficient of level 1 for type A1 civil servants with the prescribed salary of 678,600 VND. Applying the formula, we will have: 2.34 x 678.6 = 1,587,924 VND.
• 4.2 What is the salary coefficient 3.66? This coefficient 3.66 also applies to A1 type civil servants but at level 5 with an actual salary of 1,061,400 VND, so the monthly salary will be 3,884,724 VND.
• 4.3 What level is the salary coefficient 3.99? Similarly, coefficient 3.99 applies to A1 type civil servants but at level 6 with an actual salary of 1,157,100 VND, so the monthly salary will be 4,616,829 VND.

The above article of Faro Vietnam has provided readers with information about the salary coefficient table according to Decree 204, Employee work hour tracking as well as how to calculate the standard single salary coefficient formula. If you have any questions, please leave a question below for direct answers!

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