How to formulate payrolls based on job positions after the salary reform in Vietnam in 2024?

How to formulate payrolls based on job positions after the salary reform in Vietnam in 2024? - asked Mrs. T (Hanoi)

How to formulate payrolls based on job positions after the salary reform in Vietnam in 2024?

Pursuant to Resolution 104/2023/QH15, comprehensive salary policy reforms will be implemented based on Resolution 27-NQ/TW in 2018 starting from July 1, 2024.

Resolution 27-NQ/TW in 2018 establishes the construction of payrolls after the salary reform 2024 based on job positions, titles, and leadership positions, replacing the current payroll system. It converts the old salary arrangement into a new one, ensuring that the new salary is not lower than the current salary. The structure includes:

Payroll 1:

Payroll applicable to officials and public employees holding leadership positions (elected and appointed) in the political system from central to local levels.

- The salary level must reflect the hierarchy within the political system. The salary is determined by the position held. If a person holds multiple positions, they will receive the salary corresponding to the highest position. If two leadership positions are equivalent, they will receive the same salary. The salary of a higher-level leader must be higher than that of a lower-level leader.

- Each type of position will have a designated salary level. There will be no differentiation based on ministries, sectors, departments, committees, or equivalent units at the central level when constructing central-level position payrolls. The salary for the same leadership position may not vary based on the classification of local administrative units and will be implemented through allowances. The classification of equivalent leadership positions in the political system for payroll design will be decided by the Party Central Committee after reporting to the Central Executive Committee.

Payroll 2:

Payroll applicable to officials and public employees without leadership positions based on their officials' ranks and public employees' professional titles.

- Each official rank and professional title will have multiple pay steps. The salary will be determined based on the complexity of the job. Special labor conditions and professional advantages will be rewarded through allowances. The grouping and number of steps within officials' ranks and public employees' professional titles will be rearranged, encouraging officials and public employees to improve their professional skills.

Resolution 27-NQ/TW in 2018 has established these new payrolls based on a new structure, including:

Base pay: accounting for about 70% of the total salary fund.

Allowances: accounting for about 30% of the total salary fund.

Bonuses: the bonus fund will be about 10% of the total annual salary fund, excluding allowances.

In summary, payrolls after the salary reform 2024, based on Resolution 27, consist of two new payrolls based on a new structure: base pay and allowances. Additionally, a bonus fund, equivalent to about 10% of the total annual salary fund, will be added.

How to formulate payrolls based on job positions after the salary reform in Vietnam in 2024?

Which allowances are no longer included in payrolls after the salary reform 2024 in Vietnam under the Resolution 27?

The content of the allowances in Resolution 27-NQ/TW in 2018 is as follows:

II- DIRECTION, OBJECTIVES, AND CONTENT OF REFORM
...
3. Reform content
3.1. For officials, public employees, and armed forces (public sector)
...
d) Rearrange the current allowance regimes, ensuring that the total allowance fund accounts for a maximum of 30% of the total salary fund.
...
- Annul seniority allowances (except for the military, police, and cipher forces to maintain salary proportionality with officials); leadership position allowances (as leadership positions within the political system implement position-based salary arrangements); party, political, and social organization work allowances; official duty allowances (as they have been incorporated into the base pay); hazardous and dangerous work allowances (as the hazardous and dangerous labor conditions have been included in profession-based allowances).
...

Therefore, when implementing the salary reform 2024, the payrolls after the salary reform 2024 based on Resolution 27 will no longer include the following allowances:

- Seniority allowances (except for the military, police, and cipher forces to maintain salary proportionality with officials);

- Leadership position allowances (as leadership positions within the political system implement position-based salary arrangements);

- Party, political, and social organization work allowances;

- Official duty allowances (as they have been incorporated into the base pay);

- Hazardous and dangerous work allowances (as the hazardous and dangerous labor conditions have been included in profession-based allowances).

Which allowances will officials and public employees continue to receive after the salary reform in Vietnam in 2024?

Pursuant to Resolution 27-NQ/TW in 2018, when implementing the salary reform 2024, officials and public employees will continue to receive the following allowances:

- Multi-position allowance

- Extra-seniority allowance

- Region-based allowance

- Responsibility allowance

- Mobility allowance

Additionally, officials and public employees will also receive 02 new types of allowances based on the consolidation of existing allowances, specifically:

- Profession-based allowance, which combines profession-based preferential allowances, profession-based responsibility allowances, and hazardous and dangerous work allowances (applies to officials and public employees in professions or jobs with higher-than-normal labor conditions and appropriate preferential policies of the State, such as education and training, healthcare, courts, prosecution, civil enforcement, inspection, auditing, customs, forest rangers, market management, etc.).

- Special duty allowance in difficult areas, which consolidates special allowances, attraction allowances, and long-term duty allowances in economically and socially difficult areas.

- Allowances based on administrative unit classification.

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