Salary Table for Public Employees After the Salary Reform from July 1, 2024, Without Using Salary Coefficients
Salary table for officials and public employees upon salary reform from July 1, 2024, no longer calculated according to the salary coefficient?
Recently, the National Assembly passed a resolution on the Socio-Economic Development Plan for 2024, which includes content related to salary reform according to Resolution 27 effective from July 1, 2024.
The salary reform will be implemented from July 1, 2024, according to Resolution 27-NQ/TW of 2018.
Based on Point c, Clause 3.1, Section II of Resolution 27-NQ/TW of 2018, it is stipulated as follows:
Content of the Reform
3.1. For officials and public employees and armed forces (public sector)
...
c) Determine specific factors to design a new salary table
Eliminate statutory pay rate and current salary coefficient, build a basic salary with a specific amount in the new salary table.
...
Thus, from July 1, 2024, following the spirit of Resolution 27-NQ/TW of 2018, when implementing salary reform, the current salary coefficient for officials and public employees will be abolished, and a basic salary with a specific amount in the new salary table will be established.
The new salary table for officials and public employees will be based on job positions, titles, and leadership positions to replace the current salary table system; transitioning from old salaries to new salaries ensures not less than the current salaries, including the following:
- Construct one salary table for leadership positions applicable to officials and public employees holding leadership positions (elected and appointed) in the political system from central to communal levels.
- Construct one professional and technical salary table according to official ranks and professional titles applicable to officials and public employees not holding leadership positions.
Additionally, following the spirit of Resolution 27-NQ/TW of 2018, when salary reform is implemented from July 1, 2024, the new salary of officials will be calculated according to the new salary structure as follows:
| Salary of officials and public employees = Basic Salary + Allowances (if any) + Bonuses (if any) || --- |
Details:
- Basic Salary (constituting about 70% of the total salary fund)
- Allowances (constituting about 30% of the total salary fund)
- Bonus Supplement (bonus fund is about 10% of the total annual salary fund, excluding allowances).
Salary table for officials and public employees upon salary reform from July 1, 2024, no longer calculated according to the salary coefficient?
Who are officials and public employees?
- Based on the provisions of Clause 1, Article 4 of the Law on Officials and Public Employees 2008, officials are Vietnamese citizens elected, approved, or appointed to hold positions, titles based on terms in agencies of the Communist Party of Vietnam, the State, political-social organizations at the central, provincial, and city levels directly under the central government (hereinafter collectively referred to as provincial level), at districts, towns, district-level towns, cities under provinces (hereinafter collectively referred to as district level), within the payroll and receiving salaries from the state budget.
- Based on the provisions of Clause 2, Article 4 of the Law on Officials and Public Employees 2008 amended by Clause 1, Article 1 of the Law on Amendments and Supplements to the Law on Officials and Public Employees and the Law on Public Employees 2019, officials are Vietnamese citizens recruited and appointed to ranks, positions, titles corresponding to job positions in agencies of the Communist Party of Vietnam, the State, political-social organizations at the central, provincial, and district levels; in agencies and units under the People's Army but not officers, professional soldiers, national defense workers; in agencies and units under the People's Public Security but not officers, non-commissioned officers serving according to professional policies, public security workers, within the payroll and receiving salaries from the state budget.
- Based on the provisions of Article 2 of the Law on Public Employees 2010, public employees are Vietnamese citizens recruited according to job positions, working at public service providers according to working contract policies, receiving salaries from the salary fund of public service providers according to the law.
Officials and public employees receive a 32% salary increase upon salary reform from July 1, 2024?
According to the Ministry of Home Affairs' Information Portal, recently, the National Assembly voted to pass a resolution on the state budget estimate for 2024, which includes the content of implementing the salary policy from July 1, 2024.
A notable point of the new salary policy is that the lowest salary level in the public sector is equal to the average lowest regional salary level in the enterprise sector.
Currently, enterprise sector salaries are divided into 4 regions: Region 1 is VND 4.68 million/month; Region 2 is VND 4.16 million/month; Region 3 is VND 3.64 million/month; and Region 4 is VND 3.25 million/month. Thus, the average lowest salary in the enterprise sector is over VND 3.9 million.
Additionally, the new salary policy also expands the salary ratio from 1 - 2.34 - 10 currently to 1 - 2.68 - 12.
The lowest salary of officials and public employees will increase significantly compared to the current starting salary of VND 3.5 million for officials and public employees with a junior college degree, current salary coefficient 1.86.
The average salary of officials and public employees will also increase from a coefficient of 2.34 to 2.68. Currently, officials and public employees with a university degree have a starting salary of over VND 4.2 million/month.
The highest salary for officials and public employees corresponding to level 3 of a senior specialist (equal to a minister's salary) is also expanded from coefficient 10 to 12. Therefore, the new maximum salary for officials and public employees is expected to far exceed the current figure of VND 18 million.
Besides this basic salary, the new salary policy also reorganizes various allowances, making up a maximum of 30% of the total salary fund (in some cases higher than 30% or lower than 30%) and 10% bonus.
Thus, if both basic salary, allowances, and bonuses are considered, the average salary of officials and public employees after implementing the salary reform will increase by more than 32% compared to the average income of salaried labor (VND 7.5 million/month).
Furthermore, the Ministry of Home Affairs revealed that after a review, there are 36 agencies and units in some sectors not entitled to specific salary policies anymore. Even if a horizontal salary table is constructed, some agencies might reduce salaries by 50%.
Currently, approximately 134,284 officials and public employees in state administrative management agencies and units are applying specific financial and income mechanisms (with additional salaries outside the general policy ranging from 0.66 times to 2.43 times).
When implementing salary reform, these cases still have to transition to the new salary structure. And when specific mechanisms and policies on salaries and incomes are eliminated and salary reform is implemented from July 1, 2024, the new salaries, including allowances, of these officials and public employees may be lower than before the salary reform.
However, following the spirit of Resolution 27-NQ/TW of 2018, the principle “transition from old salaries to new salaries, ensuring no less than the currently received salaries” is clarified.
Therefore, the Government of Vietnam proposes an option: if the new basic salary plus allowances are lower than the currently received salaries (including additional salaries) before the salary reform, they will receive a preserved differential salary. This differential preservation amount will decrease accordingly when the new salary is adjusted annually.
Thus, as stated above, when implementing salary reform from July 1, 2024, officials and public employees will receive an increase of more than 32% compared to the average income of salaried labor except for officials and public employees of the 36 specific agencies and units in some sectors not entitled to a salary increase as mentioned above.
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