How is the new salary table for officials and public employees regulated when the salary reform is implemented from July 01, 2024?
New Salary Table for Officials and Public Employees not less than 4.1 million VND from July 1, 2024, upon the implementation of the wage reform, correct?
On the morning of December 20, the National Wage Council held its second session in 2023 to discuss and negotiate the regional minimum wage adjustment plan for 2024.
Speaking at the conclusion of the session, after listening to the opinions of related parties, Mr. Le Van Thanh, Deputy Minister of Labor, War Invalids, and Social Affairs, President of the National Wage Council, stated that all members of the National Wage Council present at the session voted to finalize the 2024 regional minimum wage increase at 6%, to be applied from July 1, 2024.
Recently, the Chairman of the National Assembly signed and issued Resolution 104/2023/QH15 on the 2024 State Budget Estimate.
In Resolution 104/2023/QH15 (effective from December 25, 2023), it is mentioned that a comprehensive wage policy reform will be implemented according to Resolution 27-NQ/TW in 2018 starting from July 1, 2024.
According to the spirit of Resolution 27-NQ/TW in 2018, the objectives set for officials (public sector) when implementing the wage reform are as follows:
Specific Objectives
...
(2) From 2021 to 2025 and vision to 2030
a) For the public sector
- From 2021, apply new unified wage policies for officials and public employees, armed forces throughout the political system.
- By 2021, the lowest wage for officials and public employees is equal to the average minimum wage of enterprises in various regions.
- Periodically adjust the wage level in accordance with the consumer price index, economic growth rate, and the state budget's capacity.
- By 2025, the lowest wage for officials and public employees is higher than the average minimum wage of enterprises in various regions.
- By 2030, the lowest wage for officials and public employees is equal to or higher than the minimum wage of the highest region of enterprises.
When the regional minimum wage increases by 6%, the enterprise sector's wages are estimated as follows:
| Region | Minimum Monthly Wage
(Unit: VND/month) || --- | --- || Region 1 | 4,960,000 || Region 2 | 4,410,000 || Region 3 | 3,860,000 || Region 4 | 3,450,000 |
Thus, the average minimum wage of the enterprise sector after a 6% regional minimum wage increase will be approximately 4.1 million VND.
From July 1, 2022, the statutory pay rate has increased to 1,800,000 VND/month (according to Decree 24/2023/ND-CP).
According to the target set in Resolution 27-NQ/TW 2018, it may raise the minimum wage of officials and public employees to 4.1 million VND/month.
By 2025, the minimum wage for officials will be higher than the average minimum wage of enterprises in various regions.
By 2030, the minimum wage for officials will be equal to or higher than the minimum wage of the highest region of enterprises.
If the projected regional minimum wage is officially approved, the salary table for officials and public employees upon the wage reform from July 1, 2024, according to the spirit of Resolution 27-NQ/TW 2018 will not be lower than 4.1 million VND.
Source: Government of Vietnam's electronic information portal
02 New Salary Tables for Officials and Public Employees upon the Wage Reform from July 1, 2024
02 New Salary Tables for Officials and Public Employees upon the Wage Reform from July 1, 2024, how are they?
According to the spirit of Resolution 27-NQ/TW 2018, when implementing the wage reform, two new salary tables will be built based on job position, title, and leadership positions, replacing the current salary table system; transition from the old salary to the new salary, ensuring that the current wage for officials and public employees is not lower, as follows:
Salary Table 01: Salary table for positions applied to officials and public employees holding leadership positions (elected and appointed) in the political system from central to local levels.
- The functional position wage must reflect the hierarchy in the political system; holding any leadership position enjoys the wage of that position, if a person holds multiple positions, they enjoy the highest functional wage; holding equivalent leadership positions enjoys the same functional wage; the functional wage of senior leaders must be higher than that of junior leaders;
- Stipulate a wage level for each type of equivalent position; do not classify ministries and central agencies, boards, committees, and equivalents at the central level when establishing the central leadership position wage table; do not differentiate between different wages for the same leadership title according to the classification of local administrative units but implement polices by allowances. The classification of equivalent leadership positions in the political system for designing functional wage tables is decided by the Politburo after reporting to the Central Executive Committee.
Salary Table 02: Salary table for professional titles and job titles of officials and professional titles of public employees applied universally to officials and public employees not holding leadership titles.
- Each position for officials, public employee titles has many wage levels based on the principle of: The same level of job complexity receives the same wage; higher-than-normal working conditions and professional incentives are implemented by professional allowances policies; rearrange the rank groups and the number of levels in official ranks, professional titles of public employees, encourage officials and public employees to improve their professional knowledge and skills.
- Appointments to official ranks or professional titles of public employees must be tied to job positions and the structure of official ranks, professional titles of public employees managed by the agency, organization, unit managing officials and public employees.
Who are officials and public employees?
- Based on the provisions in Clause 2, Article 4 of the Law on Officials 2008 as amended by Clause 1, Article 1 of the 2022 Law on Officials and Public Employees, officials are Vietnamese citizens recruited and appointed to ranks, positions, corresponding titles to job positions in the Communist Party of Vietnam, the State, political-social organizations at central, provincial, and district levels; in organizations and units of the People's Army that are not officers, professional army men, defense workers; in organizations and units of the People's Public Security that are not officers, non-commissioned officers serving under professional policies, police workers, in the establishment and drawing salaries from the state budget.
- Based on the provisions in Article 2 of the Law on Public Employees 2010, public employees are Vietnamese citizens recruited based on their job position, working at public service providers under work contract policies, drawing salaries from the salary fund of the public service provider as stipulated by law.
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