Allowance for officials and public employees upon salary reform from July 1, 2024, includes which allowances?
8 Types of Allowances Officials and Public Employees Will Receive Starting July 01, 2024
Starting July 01, 2024, officials and public employees will be entitled to the following 8 types of allowances:
(1) Concurrent Position Allowance;
(2) Seniority Allowance Beyond Rank;
(3) Regional Allowance;
(4) Professional Allowance;
(5) Mobility Allowance;
(6) Allowance for Working in Special Difficult Areas;
(7) Allowance Based on Administrative Unit Classification and Public Service Provider Ranking;
(8) Job Responsibility Allowance.
With the implementation of wage reform from July 01, 2024, the above 8 types of allowances will apply to officials and public employees.
Source: Government Newspaper
Allowances for officials and public employees will be reformed starting July 01, 2024, including which allowances?
How Will the New Salary Scale for Officials and Public Employees Increase with the Wage Reform in 2024?
A notable point of the new wage policy is the regulation that the lowest salary in the public sector is equal to the average minimum regional salary in the enterprise sector.
The Ministry of Labor, Invalids, and Social Affairs will present to the Government of Vietnam a proposal to increase the regional minimum wage expected at the end of this year. Therefore, if the regional minimum wage increases, the average minimum salary in the enterprise sector will also rise above the current VND 3.9 million.
Additionally, the new wage policy also expands the wage range from the current 1 - 2.34 - 10 to 1 - 2.68 - 12.
The lowest salary for officials and public employees will significantly increase compared to the starting salary of VND 3.5 million for officials and public employees with intermediate-level qualifications and a salary coefficient of 1.86 as of now.
The starting salary for officials and public employees with university degrees will also increase from a coefficient of 2.34 to 2.68. Currently, officials and public employees with university degrees have a starting salary of over VND 4.2 million/month.
The highest salary for officials and public employees corresponding to the 3rd level of senior experts (equal to ministerial wages) will also be expanded from a coefficient of 10 to 12. Therefore, the new highest salary for officials and public employees is expected to exceed the current VND 18 million.
Apart from this basic salary, the new wage policies also reorganize various types of allowances to account for a maximum of 30% of the total wage fund (with some cases higher or lower than 30%) and 10% bonuses.
When including the basic salary, allowances, and bonuses, the average salary for officials and public employees after wage reform will increase by more than 32% compared to the average income of wage-earning workers (VND 7.5 million/month).
Furthermore, from 2025 onwards, the Government of Vietnam will continue to adjust the salary levels in the salary tables, increasing by an average of about 7%/year. That is, after the wage reform with new salary scales that are higher than the current ones, officials and public employees will still receive an annual salary increase of 7%.
Which Salary Scale Will the New Salary Scale for Officials and Public Employees from July 01, 2024 Apply?
The National Assembly passed a Resolution on the 2024 state budget estimate on November 10, 2023. Notably, the Resolution allocates Article 3 to implementing wage policy reforms.
Specifically, the Resolution states that, from July 01, 2024, a comprehensive reform of the wage policy will be implemented according to Resolution 27-NQ/TW of 2018 from the Seventh Plenum of the 12th Central Committee.
The funding for wage reform is ensured from the accumulated wage reform fund of the central and local budgets and partially allocated in the balanced state budget expenditure estimates.
At the same time, pensions, social insurance benefits, monthly allowances, preferential allowances for those with meritorious services, and some social security policies linked to the statutory pay rate will be adjusted.
Thus, from July 01, 2024, the salary scale for officials and public employees will be applied as follows:
- One position-based salary scale applicable to officials and public employees holding leadership positions (elected and appointed) within the political system from the Central to the communal level.
This salary scale is based on the principles:
The position-based salary must reflect the hierarchy within the political system; holding a leadership position should be compensated according to that position; if a person holds multiple positions, they will receive the highest position-based salary; leadership positions equivalent to one another will receive the same level of salary; the position-based salary of higher-level leaders must be higher than those of lower-level leaders;
A single position-based salary for each type of equivalent position is stipulated; ministries and central authorities, committees, and equivalents at the central level are not differentiated when constructing the central position-based salary scale; different position-based salaries are not distinguished for the same leadership role based on the classification of administrative units in localities but are implemented through allowance policies.
The classification of equivalent leadership positions within the political system to design the position-based salary scale is decided by the Political Bureau after reporting to the Central Committee.
- One professional, occupational salary scale for officials and public employees without leadership positions, applied uniformly to all officials and public employees not holding leadership roles.
This salary scale is based on the principles:
The same level of job complexity is compensated equally; higher-than-normal working conditions and occupational incentives are implemented through professional allowance policies.
Reorganizing the group of grades and the number of levels within official and professional occupational titles, encouraging officials and public employees to enhance their professional qualifications. Appointments to an official grade or professional occupational title must be linked to the position and structure of official grades, professional occupational titles managed by agencies, organizations, and units employing officials and public employees.
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