5 New Salary Schedules from July 1, 2024: Which Payments Outside of Salary Will be Removed During Wage Reform?
5 New Salary Schedules from July 1, 2024: Which Allowances Are Dropped When Implementing Wage Reform?
According to Resolution 104/2023/QH15, a comprehensive wage policy reform will be implemented following Resolution 27-NQ/TW of 2018 from July 1, 2024.
Under Resolution 27-NQ/TW of 2018, there will be 5 new salary schedules during the wage reform as follows:
| - One salary schedule for positions applies to officials and public employees holding leadership roles (elected and appointed) within the political system from the Central to communal levels based on principles;
- One professional and occupational schedule aligned to the grades of officials and occupational titles of public employees applied universally for officials and public employees not holding leadership titles;
- One salary schedule for military officers, police officers, professional non-commissioned officers (according to position, title, and rank or grade);
- One salary schedule for professional soldiers, police technical specialists;
- One salary schedule for defense workers, police workers (maintaining wage relations for armed forces compared to administrative officials as present). || --- |
Also according to Resolution 27-NQ/TW of 2018, when implementing wage reform, 5 salary schedules will be constructed based on 5 criteria as follows:
| - Abolishing the current statutory pay rate and salary coefficients, establishing a basic salary with a specific monetary amount in the new salary schedule.
- Uniformly implementing labor contract policies under the Labor Code (or service contracts) for those performing subservient, supportive tasks (requiring training levels below intermediate), not applying officials and public employees' salary schedules to these subjects.
- Determining the lowest salary level of officials and public employees in the public sector as the salary of those performing duties requiring intermediate training levels (Grade 1) not lower than the minimum wage of trained labor in the enterprise sector.
- Expanding wage relationships as the basis for determining specific salary levels in the salary schedule system, gradually approaching the wage relationships in the enterprise sector in accordance with the State's resources.
- Perfecting policies for regular salary increases and premature salary increases for officials and public employees and armed forces in accordance with the new salary schedule regulations. || --- |
Furthermore, in Resolution 27-NQ/TW of 2018, it is mentioned that essential and decisive financial and budgetary solutions will be undertaken as breakthrough tasks to create resources for the wage policy reform as follows:
KEY TASKS AND SOLUTIONS
4. Decisively implementing financial and budgetary solutions, viewing these as breakthrough tasks to create resources for wage policy reform.
...
- Abolishing allowances outside the salary for officials and public employees funded by the state budget such as: Meeting allowance; allowances for drafting legal documents, schemes; seminars, etc. Implementing a wage fund allocation associated with streamlining the staffing of agencies and units. Expanding the fund allocation mechanism associated with task performance results. Not linking officials and public employees' salary levels to the formulation, amendment, or supplementation of policy documents that are not salary-related. Studying regulations to allocate non-salary policies (cars, phones, etc.). Only issuing new policies when resources for implementation have been arranged and balanced.
...
According to the above content, from July 1, 2024, during the wage reform, allowances outside the salary such as meeting allowances, allowances for drafting legal documents, schemes, seminars, etc., for officials and public employees funded by the state budget will be abolished. However, it does not mention armed forces.
5 New Salary Schedules from July 1, 2024: Which Allowances Are Dropped When Implementing Wage Reform?
Entire 5 New Salary Schedules from July 1, 2024: What Components Will Be Used When Calculating Salaries in the Wage Reform?
According to Resolution 104/2023/QH15, a comprehensive wage policy reform will be implemented following Resolution 27-NQ/TW of 2018 from July 1, 2024.
Resolution 27-NQ/TW of 2018 highlights the following issues:
Wage policy in the public sector remains complex, with salary schedules not suitable for job positions, titles, and leadership roles; it still bears an average nature, does not ensure livelihood, does not attract talent, and does not create motivation to improve the quality and efficiency of workers. The statutory pay rate multiplied by the coefficient does not clearly reflect the real value of the salary. There are too many allowances and many non-salary incomes decided by different agencies at different levels through various regulatory documents, leading to irrationalities that do not clearly represent administrative hierarchy in public service activities. There is a lack of empowerment and responsibility for agency heads in evaluating and paying salaries and bonuses linked to the productivity, quality, and efficiency of officials and public employees and workers.
At the same time, Resolution 27-NQ/TW of 2018 proposes a wage reform that involves designing 5 new salary structures:
Determine specific factors to design a new salary schedule
- Abolish the statutory pay rate and current salary coefficients, establishing a basic salary with specific monetary amounts in the new salary schedule.
- Uniformly implement labor contract policies under the Labor Code (or service contracts) for those performing subordinate, supportive tasks (requiring training levels below intermediate), not applying officials and public employees' salary schedules to these subjects.
- Determine the lowest salary level of officials and public employees in the public sector as the salary for duties requiring intermediate training levels (Grade 1) not lower than the minimum wage of trained labor in the enterprise sector.
- Expand wage relationships as the basis for determining specific salary levels in the salary schedule system, gradually approaching the wage relationships in the enterprise sector in line with the State's resources.
- Perfect policies for regular salary increases and premature salary increases for officials and public employees and armed forces in accordance with the new salary schedule regulations.
Considering the issues associated with the statutory pay rate multiplied by the coefficient not clearly reflecting the real value of the salary, from July 1, 2024, during the wage reform according to Resolution 27-NQ/TW of 2018, the old method of calculating salary based on the statutory pay rate multiplied by the coefficient will be abolished and replaced by constructing a basic salary with specific monetary amounts in 5 new salary schedules based on work positions.
Resolution 27-NQ/TW of 2018 specifies the structuring of the new salary system, including: Basic salary (comprising about 70% of the total wage fund) and allowances (comprising about 30% of the total wage fund). It also adds bonuses (with a bonus fund accounting for about 10% of the annual total wage fund, excluding allowances).
Thus, based on the aforementioned content, it can be anticipated that from July 1, 2024, the wage reform with 5 new schedules will calculate salaries using the following components:
- Basic salary (comprising about 70% of the total wage fund) and- Allowances (comprising about 30% of the total wage fund).
Additionally, bonuses will be added (with a bonus fund accounting for about 10% of the annual total wage fund, excluding allowances).
Officials and Public Employees and Armed Forces: What Allowances Will Be Available from July 1, 2024?
In line with Resolution 27-NQ/TW of 2018, when wage reform is implemented, 9 types of allowances under new wage policies will apply to officials and public employees and armed forces as follows:
- Concurrent position allowance;- Seniority beyond the framework allowance;- Regional allowance;- Job responsibility allowance;- Mobility allowance;- Occupational allowance;- Allowance for working in particularly difficult areas;- Allowance according to the classification of administrative units;- Allowance specifically for armed forces.
Additionally, Resolution 27-NQ/TW of 2018 clearly states:
a) Design a new wage structure including: Basic salary (comprising about 70% of the total wage fund) and allowances (comprising about 30% of the total wage fund). Adding bonuses (with a bonus fund accounting for about 10% of the annual total wage fund, excluding allowances).
The above allowances will comprise about 30% of the total wage fund.
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