Abolition of Certain Allowances, Increase of Other Amounts in the Implementation of Wage Reform for the Military Salary Scale 2024
Which Allowances are Abolished and Which are Increased When Implementing Salary Reform for the Military Pay Scale in 2024?
In Subsection 3.1 Section II of Resolution 27-NQ/TW of 2018, the salary reform details are outlined as follows:
Content of the Reform
...
For officials and public employees and the armed forces (public sector)
- Abolishing seniority allowances (except for the military, police, and cryptographic sector to ensure salary correlation with officials); leadership position allowances (as leadership positions in the political system implement positional salary); allowances for party work, political-social organizations; official allowances (as they have been included in the basic salary); hazardous and dangerous allowances (as hazardous and dangerous working conditions have been included in professional allowances).
Accordingly, with the above-mentioned reform content, the military pay scale in 2024 after implementing salary reform will have the following allowances abolished:
- Leadership position allowances.- Allowances for party work, political-social organizations.- Official allowances (as they have been included in the basic salary).
However, despite the abolition of these allowances, the military pay scale in 2024 will not decrease; rather, it will increase. This is because Resolution 27-NQ/TW of 2018 stipulates the construction and issuance of the military and police pay scale system based on job position, title, and leadership position to replace the current pay scale system, ensuring that new salaries are not lower than the current salaries as follows:
- Constructing 3 pay scales for the armed forces, including:
+ 1 pay scale for military officers, professional officers, non-commissioned officers of the police (based on position, title, and military or police rank).
+ 1 pay scale for professional soldiers, technical specialists in the police.
+ 1 pay scale for defense and police workers (maintaining the salary correlation of the armed forces with administrative officials as currently).
Additionally, the Prime Minister stated that from 2025 onwards, salary will continue to be adjusted to increase by an average of 7% per year for officials and public employees, and the armed forces until the minimum salary is equal to or higher than the minimum wage of Region I in the business sector.
The military pay scale will increase by 7% annually from 2025 upon the implementation of salary reform **** until the minimum salary is equal to or higher than the minimum wage of Region I in the business sector.
Thus, when implementing the 2024 salary reform, the military pay scale will increase due to the following reasons:
- The pay scale will be arranged according to job position, title, and leadership position to replace the current pay scale system.
- Increase by 7% annually from 2025 when implementing salary reform **** until the minimum salary is equal to or higher than the minimum wage of Region I in the business sector.
- Income derived from bonuses (if any), with a bonus fund equivalent to about 10% of the total annual salary fund, excluding allowances.
Which Allowances are Abolished and Which are Increased When Implementing Salary Reform for the Military Pay Scale in 2024?
On What Factors is the New Military Pay Scale Based?
At Point c, Subsection 3.1 Section II of Resolution 27/NQ-TW of 2018, the specific factors for designing the new pay scale are defined as follows:
- Abolish the current statutory pay rate and salary coefficients, building a basic salary amount in the new pay scale.
- Expand salary relationships as a basis to determine specific salary amounts in the pay scale system, gradually approaching the salary relationship in the business sector suitable to the state's resources.
- Complete policies for regular salary increases and pre-term salary increases for officials and public employees and the armed forces in accordance with the regulations of the new pay scale.
Which Social Insurance Benefits Will Change for the Military When Implementing Salary Reform in 2024?
According to Resolution 27-NQ/TW of 2018, the current statutory pay rate and salary coefficients will be abolished, constructing a basic salary amount in the new pay scale.
Accordingly, after salary reform, a new pay scale system will be constructed and issued based on job position, title, and leadership position for officials and public employees to replace the current pay scale system; transitioning old salaries to new salaries, ensuring they are not lower than the current salaries.
Currently, some allowances attached to the statutory pay rate include:
- Allowance for convalescence, health recovery after sickness.- One-time allowance for childbirth, adoption.- Allowance for convalescence, health recovery after maternity leave; funeral allowance.- Monthly survivorship allowance.- ...
To ensure the uniform implementation of laws after the salary reform, in Section 6 Part III of Resolution 27/NQ-TW of 2018, it was proposed to amend and perfect laws on social insurance and relevant laws related to salary policies in the public sector.
Thus, based on the above contents, the social insurance allowances attached to the statutory pay rate are expected to be amended to suit new salary policies after the salary reform, effective from July 1, 2024.
In the Proposal 527/TTr-CP of the Government of Vietnam on the Draft Social Insurance Law (amended) dated October 10, 2023, the Government of Vietnam proposed amending the allowances attached to the statutory pay rate towards regulation by specific monetary amounts (equal to the absolute amount of current regulations), simultaneously stipulating that these amounts are adjusted when the Government of Vietnam adjusts pensions and social insurance benefits.
With the implementation of the 2024 salary reform, the allowances attached to the statutory pay rate may be amended.
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