03 subjects continue to receive seniority allowance after salary reform according to Resolution 27/NQ-TW?
Specific Roadmap for Wage Reform with Officials according to Resolution 27?
According to Resolution 27-NQ/TW in 2018, specific goals for wage reform from 2021 to 2025 and the vision to 2030 are as follows:
(1) For the Public Sector
- From 2021, apply new unified wage policies for officials and public employees, armed forces across the entire political system.
- In 2021, the minimum wage for officials and public employees will be equivalent to the average minimum wage in various regions of the enterprise sector.
- Periodically raise wages in line with the consumer price index, economic growth rates, and the state budget's capacity.
- By 2025, the minimum wage for officials and public employees will be higher than the average minimum wage in various regions of the enterprise sector.
- By 2030, the minimum wage for officials and public employees will be equal to or higher than the minimum wage in the highest region of the enterprise sector.
(2) For the Enterprise Sector
- From 2021, the State will periodically adjust regional minimum wages based on the recommendations of the National Wage Council. Businesses will implement wage policies based on negotiations and agreements between employers and employees and their representative collective; the State will not directly interfere in the wage policies of businesses.
- Manage labor and wages in state-owned enterprises based on a fixed payroll cost regimen linked to the business tasks of the enterprise by 2025 and gradually move to a business task assignment system by 2030.
On the afternoon of September 19, 2023, National Assembly Chairman Vuong Dinh Hue delivered the closing speech at the Vietnam Socio-Economic Forum 2023, emphasizing the need to fundamentally implement wage policy reform in 2024.
"This is a reform, not an ordinary wage increase. If nothing changes, we can apply it from July 1, 2024".
Thus, the anticipated wage policy reform may be applied from July 1, 2024.
03 beneficiaries continuing to receive seniority allowance after wage reform according to Resolution 27/NQ-TW?
03 beneficiaries continuing to receive seniority allowance after wage reform according to Resolution 27/NQ-TW?
According to point d subparagraph 3.1 Section 3 Part II of Resolution 27-NQ/TW in 2018, the wage reform content for the public sector entails the abolition of several allowances including seniority allowance; leadership position allowance; party, political-social organization work allowance; civil service allowance; hazardous, dangerous allowance.
However, for the seniority allowance, there will be 03 exceptions for the following groups to ensure wage parity with officials:
- Military;- Public security;- Cryptography.
Thus, after reorganizing the current allowance policies, ensuring that the total allowance fund accounts for a maximum of 30% of the total wage fund, the above 03 groups will still continue to receive seniority allowance.
Wage and income management mechanism according to Resolution 27/NQ-TW in 2018?
According to point e subparagraph 3 Section II of Resolution 27/NQ-TW in 2018, the wage and income management mechanism when implementing wage reform in 2024 is as follows:
- Heads of agencies, organizations, units shall establish regulations for periodic bonuses for subjects under their management, linked to the evaluation results and performance levels of each individual.
- Heads of agencies, organizations, units are allowed to use the allocated annual salary fund and recurrent expenditure to hire experts, scientists, and individuals with exceptional talent to perform tasks of the agency, organization, unit, and decide on appropriate pay commensurate with the assigned tasks.
- Expand the application of pilot mechanisms to some provinces, centrally-run cities that have balanced their budgets and ensured sufficient funds to undertake wage reform, where social welfare policies can raise the average additional income not exceeding 0.8 times the basic salary fund for officials and public employees under their management.
- Public service units that assure their recurrent and investment expenditures or assure their recurrent expenditures and off-budget state financial funds implement an autonomous wage mechanism based on operational results similar to enterprises.
- Public service units partially covering their own recurrent expenditures and public service providers fully covered by the state budget shall apply wage policies similar to officials.
Actual salaries paid are linked to job positions, professional titles of public employees, decided by the head of the public service unit based on the revenue source (from the state budget allocation and from the unit's revenue), labor productivity, work quality, and performance efficiency according to the unit's wage compensation regulations, not lower than the wage policies stipulated by the State.
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