A monthly salary of 21 million VND is the highest salary level when implementing wage reform from July 01, 2024, for official public employees, correct?
Is the salary of VND 21 million/month the highest salary when implementing wage reform from July 1, 2024, for official public employees?
On November 10, the National Assembly approved the Resolution on the State budget estimation for 2024.
A notable point of the new salary policy is the regulation that the lowest salary in the public sector is equal to the average minimum regional wage of the enterprise sector.
The new salary policy also expands the salary relation from the current 1 - 2.34 - 10 to 1 - 2.68 - 12.
The minimum salary of officials and public employees will increase significantly compared to the starting salary of VND 3.5 million for officials and public employees with intermediate education, with a current salary coefficient of 1.86.
The average salary of officials and public employees will also have a starting increase from the coefficient of 2.34 to 2.68. Currently, officials and public employees with a university degree earn a starting salary of more than VND 4.2 million/month.
The salary coefficient for each category of officials and public employees is currently regulated in Decree 204/2004/ND-CP.
The highest salary of an official public employee is currently for senior experts ranked at level 3 with a salary coefficient of 10.0. The current statutory pay rate is VND 1,800,000. The salary of this group is VND 18 million/month (excluding allowances if any).
When implementing wage reform, the highest salary of officials and public employees will also be broadened from the coefficient of 10 to 12. Therefore, if the figure of VND 1,800,000 remains as the basis for the salary table during the wage reform, the new highest salary of officials and public employees is expected to reach more than VND 21 million/month.
However, this is still a calculation based on the statutory pay rate and salary coefficient. The Ministry of Home Affairs only mentioned that broadening the salary relation from the coefficient of 10 to 12 would make the new highest salary of officials and public employees significantly exceed the current VND 18 million, without specifying how much further.
Therefore, it is not certain that the highest salary of officials and public employees will be more than VND 21 million as per the current calculation method. Hence, the exact highest salary for official public employees can only be known when the new salary table is specified.
Is VND 21 million/month the highest salary when implementing wage reform from July 1, 2024, for official public employees?
What types of allowances will officials and public employees receive from July 1, 2024?
From July 1, 2024, the 8 types of allowances that officials and public employees will receive include the following:
(1) Concurrent position allowance;
(2) Seniority allowance exceeding the framework;
(3) Regional allowance;
(4) Occupational allowance;
(5) Mobility allowance;
(6) Allowance for working in particularly difficult areas;
(7) Allowance based on administrative unit classification;
(8) Job responsibility allowance.
When implementing wage reform from July 1, 2024, the above 8 types of allowances will be applied to officials and public employees.
What salary table will be applied for officials and public employees from July 1, 2024?
On November 10, 2023, the National Assembly passed the Resolution on the State budget estimation for 2024. Notably, the Resolution earmarks Article 3 for implementing the wage policy.
Specifically, the Resolution states that from July 1, 2024, the comprehensive reform of the wage policy as outlined in Resolution 27-NQ/TW 2018 of the Seventh Plenum of the 12th Central Committee will be implemented.
The funding for implementing wage reform will be ensured from accumulated wage reform funds of the Central budget, local budgets, and a portion allocated in the annual balanced State budget estimate.
Additionally, adjustments will be made to pensions, social insurance benefits, monthly allowances, preferential treatment for people with meritorious services, and some social security policies linked to the statutory pay rate.
Thus, from July 1, 2024, the salary table for officials and public employees will be applied as follows:
- 1 position-based salary table applied to officials and public employees holding leadership positions (elected and appointed) in the political system from the Central level to the commune level.
This salary table is constructed based on principles:
The position-based salary must reflect the hierarchy in the political system; holding a leadership position results in a salary according to that position, if one person holds multiple positions, the highest position-based salary is enjoyed; holding equivalent leadership positions results in the same position-based salary; the position-based salary of a superior leader must be higher than that of a subordinate leader;
A salary for each equivalent position is regulated; when constructing the position-based salary table at the Central level, ministries and central authorities, committees, and equivalents are not classified; different position-based salaries for the same leadership position according to the classification of administrative units at the local level are not differentiated but implemented through allowance policies.
The classification of equivalent leadership positions within the political system to design the position-based salary table is decided by the Politburo after reporting to the Central Committee.
- 1 professional and specialized salary table by official rank and public employee professional title applied generally to officials and public employees not holding leadership positions.
This salary table is constructed based on principles:
The same complexity level of work results in the same salary; higher-than-normal working conditions and occupational incentives are implemented through professional allowance policies.
Re-arranging groups of ranks and steps within official ranks, public employee professional titles, and encouraging officials and public employees to enhance their professional and specialized qualifications. The appointment to a rank or public employee professional title must be associated with job positions and the structure of ranks and public employee professional titles managed by agencies, organizations, and units that manage officials and public employees.
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