Salary Table for Officials from July 1, 2024: Increases in Wages Due to the 2024 Salary Reform?
Salary Schedule for Officials from July 1, 2024: What Increases Will Be Made When Implementing the 2024 Salary Reform?
Based on Subsection 3, Section II of Resolution 27-NQ/TW of 2018, the reform content involves reorganizing current allowance policies, ensuring that the total allowance fund accounts for a maximum of 30% of the total salary fund, including:
The abolition of professional seniority allowances (except for the military, police, and cipher forces to ensure the salary correlation with officials); leadership allowance (due to grading leadership positions within the political system based on position salary); party work, political-social organizations allowance; public service allowance (since it is already included in the basic salary); and hazardous and dangerous work allowance (as conditions involving hazardous and dangerous work are included in professional allowances).
Thus, when conducting the salary reform, a new salary schedule for officials will be constructed per the content outlined in Resolution 27-NQ/TW of 2018. Leadership allowances, professional seniority allowances, and allowances for party work and political-social organizations will be abolished; public service allowances will also be removed.
Additionally, Resolution 27-NQ/TW of 2018 also discusses the new salary structure for officials as follows:
Basic salary (accounting for approximately 70% of the total salary fund) and allowances (accounting for about 30% of the total salary fund). Introduce bonuses (the bonus fund is about 10% of the annual total salary fund, excluding allowances).
Compared to the current regulation, from July 1, 2024, officials will have an additional income source from bonuses.
Furthermore, from 2025 onwards, salaries will continue to be adjusted, increasing an average of 7% per year for officials and public employees, armed forces until the lowest salary reaches or exceeds the minimum wage of Region I in enterprises.
Thus, after the salary reform, the income of officials can be further increased through bonuses and an average annual basic salary increase of 7% starting from 2025.
Salary Schedule for Officials from July 1, 2024: What Increases Will Be Made When Implementing the 2024 Salary Reform?
What Will the Salary Schedule Look Like for Officials After the Salary Reform?
Resolution 27-NQ/TW of 2018 also provides for the construction and enactment of a new salary schedule based on job positions, ranks, and leadership positions, replacing the current salary system. The switch from the old to the new salary schedule will ensure salaries are not lower than their current levels, including:
- Constructing a salary schedule for leadership positions applicable to officials and public employees holding elected or appointed leadership positions throughout the political system from the Central to the commune level based on the principle:
+ The position salary must demonstrate hierarchy within the political system; the salary corresponds to the specific leadership role; if an individual holds multiple positions, the highest position salary applies; equivalent leadership positions have the same position salary; the position salary of higher-level leaders must be higher than the position salary of lower-level leaders;
+ Defining one position salary for each equivalent position; not differentiating between ministries and central authorities, committees, or equivalent entities at the Central level when creating the position salary schedule; not distinguishing between different position salaries for equivalent leadership titles by administrative unit classification at the local level, implementing via allowance policies. The classification of equivalent leadership positions within the political system for designing the position salary schedule is decided by the Politburo after reporting to the Central Committee.
- Constructing a professional and career salary schedule according to official ranks and public employee career titles applicable to officials and public employees not holding leadership positions; each official rank and public employee career title has several salary grades based on:
Equal complexity of work equals equal salary; higher-than-normal working conditions and occupational preferentials are handled through professional allowance policies; rearranging the classification of groups and the number of grades within official ranks and public employee career titles, encouraging officials and public employees to enhance their professional and occupational qualifications.
Appointments to official ranks or public employee career titles must be linked with job positions and the structure of official ranks and public employee career titles managed by the organization handling officials and public employees.
What is the Timeline for Salary Reform According to Resolution 27?
Resolution 27-NQ/TW of 2018 outlines the implementation timeline for salary reform from 2021 to 2025 and a vision to 2030 as follows:
- For the Public Sector:
+ From 2021, new uniform salary policies for officials and public employees, armed forces across the entire political system will be implemented.
+ In 2021, the lowest salary for officials and public employees will be equal to the average minimum wage of all regions in the enterprise sector.
+ Periodically adjusting salaries to match consumer price indices, economic growth rates, and the state budget's capabilities.
+ By 2025, the lowest salary for officials and public employees will be higher than the average minimum wage of all regions in the enterprise sector.
+ By 2030, the lowest salary for officials and public employees will be equal to or higher than the minimum wage of the highest region in the enterprise sector.
- For the Enterprise Sector:
+ From 2021, the State periodically adjusts the regional minimum wage based on recommendations from the National Wage Council. Enterprises enforce wage policies based on negotiations and agreements between employers and employees and their collective representatives; the State does not directly intervene in enterprise wage policies.
+ Managing labor and wages in state-owned enterprises by cost-based wage method linked to the enterprise's production and business tasks until 2025, advancing to task-based production and business assignments for enterprises by 2030.
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