Abolition of Certain Allowances and Increases of Certain Items in the Military Salary Scale Upon Implementation of the 2024 Wage Reform
Abolishing Allowances and Increasing Payments in the Military Salary Scale upon Implementing the 2024 Salary Reform
In Subsection 3.1, Section II of Resolution 27-NQ/TW of 2018, the guidelines for salary reform stipulate the following:
Reform Content
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For officials and public employees and armed forces (public sector)
- Abolish the seniority allowance (except for the military, police, and cipher to ensure salary correlation with officials); leadership position allowances (since leadership positions within the political system will be placed on the position salary scale); party, political-social organization work allowances; public service allowances (included in the basic salary); hazardous and dangerous allowances (as working conditions with harmful and dangerous factors have been factored into the professional allowance).
Thus, according to the above reform guidelines, the military salary scale in 2024, after implementing the salary reform, will see the following allowances abolished:
- Leadership position allowance.- Party, political-social organization work allowance.- Public service allowance (included in the basic salary).
However, despite these abolitions, the military salary scale in 2024 will not decrease; on the contrary, it will increase. This is because Resolution 27-NQ/TW of 2018 provides for the establishment and implementation of a new military and police salary system based on job positions, titles, and leadership roles, replacing the existing salary system; transitioning from the old salary to the new one, ensuring it is not lower than the current salary, as follows:
- Develop three salary tables for the armed forces, including:
+ A salary table for military officers and police officers and non-commissioned officers (based on positions, titles, and rank).+ A salary table for professional military personnel and technical police specialists.+ A salary table for defense and police workers (maintaining the salary correlation between the armed forces and administrative officials as presently).
Additionally, the Prime Minister indicated that from 2025 onwards, salary adjustments will continue to increase by an average of 7% per year for officials, public employees, and armed forces until the lowest salary is equal to or higher than the minimum salary of Region I in the enterprise sector.
Thus, upon implementing the 2024 salary reform, the military salary scale will increase due to the following reasons:
- The salary will be sorted based on job positions, titles, and leadership roles, replacing the current salary system.- An annual increase of 7% from 2025 until the lowest salary is equal to or higher than the minimum salary of Region I in the enterprise sector.- Income from bonuses (if any), with a bonus fund constituting about 10% of the total annual salary fund, excluding allowances.
See also: Who will receive a 6% regional minimum wage increase from July 1, 2024?
Which allowances do professional soldiers receive and not receive from July 1, 2024?
Abolishing Allowances and Increasing Payments in the Military Salary Scale upon Implementing the 2024 Salary Reform
On What Factors is the New Military Salary Table Based?
In Point c, Clause 3.1, Section II of Resolution 27/NQ-TW of 2018, it specifies the factors to design the new salary table as follows:
- Abolish the statutory pay rate and current salary coefficients, establishing a basic salary amount in specific monetary terms in the new salary table.- Expand the salary relationship basis to determine specific salary amounts in the salary system, gradually aligning with the salary relationship in the enterprise sector, in accordance with the State's resources.- Perfect the policies on regular and promotion salary increases ahead of schedule for officials, public employees, and armed forces in accordance with the new salary table regulations.
What Levels of Social Insurance Benefits Will Change for the Military Upon Implementing the 2024 Salary Reform?
According to Resolution 27-NQ/TW of 2018, the statutory pay rate and current salary coefficients will be abolished, establishing a basic salary amount in specific monetary terms in the new salary table.
Accordingly, after the salary reform, a new salary system will be established and implemented based on job positions, titles, and leadership roles for officials and public employees, replacing the current system; transitioning from the old salary to the new one, ensuring it is not lower than the current salary.
Currently, certain allowances tied to the statutory pay rate include:
- Allowance for convalescence and recovery after illness.- One-time allowance for childbirth or adoption.- Allowance for convalescence and recovery after childbirth; funeral allowance.- Monthly death benefit allowance.- ...
To ensure the uniform implementation of laws following the salary reform, Section 6, Part III of Resolution 27/NQ-TW of 2018 outlines the tasks of amending and perfecting social security laws and related policies on public sector salaries.
Thus, based on the above content, the social insurance allowances currently tied to the statutory pay rate may need to be amended following the projected salary reform from July 1, 2024, to align with the new salary policies.
According to Submission 527/TTr-CP of the Government of Vietnam on the Amended Social Insurance Law Project dated October 10, 2023, the government proposes to amend allowances tied to the statutory pay rate by specifying a fixed amount (equivalent to the current absolute value), simultaneously adjusting these amounts in alignment with the government's adjustments to pensions and social insurance benefits.
Thus, the social insurance-related allowances tied to the statutory pay rate might change upon implementing the 2024 salary reform.
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